As of 1 May 2025, Sarawak officially enforces major amendments to its Labour Ordinance, aligning with the Employment Act 1955 used in Peninsular Malaysia. This update brings a long-awaited standardization to employment practices across regions and introduces several important changes for businesses operating in Sarawak.
Whether you’re managing an SME or a large corporation, these updates demand immediate attention. Staying compliant isn’t just about avoiding penalties—it’s about ensuring fairness and building a sustainable workforce.
Key Changes Employers Need to Understand
Here’s what’s new in the updated Sarawak Labour Ordinance:
- All employees are now protected
The previous salary cap of RM2,500 no longer applies. Every employee—regardless of income—is covered under the law. - Maternity leave extended to 98 days
Female employees are now entitled to 98 days of paid maternity leave, up from the previous 60 days. - Paternity leave introduced
Eligible fathers can now take 7 days of paid paternity leave. - Weekly hours reduced to 45
Employees’ maximum working hours are now 45 hours per week, reduced from 48, supporting better work-life balance. - Right to request flexible work
Employees may formally apply for flexible working arrangements, which employers must respond to in writing. - Anti-discrimination protection
Stronger measures are in place to prevent discrimination and harassment at the workplace. - Higher penalties for non-compliance
Employers found violating the ordinance may face fines up to RM50,000.
These changes reflect a shift toward more equitable and progressive employment practices in Sarawak.
Why Businesses Should Act Now
If your HR processes are still manual or fragmented, now is the time to upgrade. Relying on outdated systems or informal communication channels can expose your company to compliance risks, employee dissatisfaction, or even legal action.
It’s not just about avoiding fines—it’s about creating a trusted, efficient, and lawful HR foundation.
Kakitangan.com Keeps You Compliant
Kakitangan.com is already updated to support the new Sarawak Labour Ordinance. Our all-in-one HR system makes compliance easier with:
- Automated payroll and OT calculations
- Custom leave policies for maternity, paternity, and more
- Flexible work scheduling tools
- Digital records for audits and inspections
- Real-time updates when labour laws change
Take the Next Step
Thousands of companies in Malaysia use Kakitangan.com to streamline their HR operations. If you have employees in Sarawak, we’re ready to help you make the transition—smoothly and confidently.
Contact us today and stay one step ahead.
