Starting 1 May 2025, Sabah's Labour Ordinance underwent major amendments to align with Malaysia’s Employment Act 1955. This move brings Sabah in line with Peninsular Malaysia and Sarawak, ensuring fairer, more standardized labour practices across the nation.
If your business operates in Sabah, these updates aren’t optional. They are legally binding, and failure to comply may lead to serious consequences. Now is the time to act—before outdated HR practices cost your company.
Why Amendments Every Employer Should Know
Here are the most impactful changes introduced under the revised ordinance:
- Wider employee protection
All employees in Sabah, regardless of salary level or contract type, are now protected. The previous RM2,500 monthly salary cap is no longer applicable. - Maternity leave extended
Female employees are now entitled to 98 days of maternity leave, up from the previous 60 days. - New paternity leave rights
Fathers who meet eligibility criteria are granted 7 days of paid paternity leave. - Shorter workweek
Working hours are capped at 45 hours per week, replacing the old 48-hour standard. - Right to request flexible work
Employees may now formally request flexible work arrangements, which employers must consider in writing. - Anti-discrimination clause
The law now explicitly prohibits workplace discrimination and provides a clearer mechanism for reporting. - Stricter penalties for non-compliance
Employers may face fines of up to RM50,000 for violations.
Why Employers in Sabah Shouldn’t Delay
Compliance is no longer a choice—it’s a requirement. Relying on spreadsheets, WhatsApp approvals, or scattered manual systems won’t meet the legal standards. This puts your business at risk of audits, fines, and potential lawsuits.
Beyond legal implications, these changes present an opportunity to modernize HR operations and build better employee trust and retention.
Stay Compliant with Kakitangan.com
Kakitangan.com has already adapted our platform to meet the updated Sabah Labour Ordinance. We help businesses like yours stay compliant effortlessly with:
- Automated payroll aligned with new OT and leave laws
- Customizable leave policies, including maternity and paternity
- Flexible work scheduling features
- Built-in digital audit trails and records
- Instant updates when laws change—no manual tracking required
Let’s Get You Up to Speed
Thousands of Malaysian businesses trust Kakitangan.com to simplify HR and compliance. If you're managing employees in Sabah, let us help you make the transition easy and error-free.
Try our system today and future-proof your HR.
