Recently, at a program organised by the Women Entrepreneur Network Association (WENA) which was attended by women entrepreneurs from across the industries, they shared about the challenges they would face with the implementation of the newly amended Employment Act. The Dewan Rakyat approved the amendments on 21 March 2022 including increased maternity leave from 60 to 98 days, paternity leave of 7 days, reducing weekly working hours from 48 hours to 45 hours and the option of flexible working arrangement for employees.
Eventhough the implementation of this amendment was scheduled to take effect beginning the 1st of September, it has now been postponed to the 1st of January 2023 by the Minister of Human Resources. Nevertheless, we should not disregard the direct impact this amendment has over our fellow employers. Survey from the women entrepreneurs that are currently involved in multiple industries found that 78.7% of the respondents are owned by women employing women below the age of 50 whilst only 68.1% of them are aware of the changes to the maternity and paternity leave. Hence, a significant portion of women would be adversely affected and many of them would be at the mercy of this amendment.
Eventhough Malaysia has progressed to the endemic stage, these amendments are burdening Malaysian employers because:
- Employers are still struggling to cope with the effects of Post-Covid;
- Simultaneous implementation of minimum wage;
- Increase in cost of living; and
- Employers facing labour shortage that affects their overall productivity.
All of these factors have an adverse financial impact on their businesses. The Government should step-in and engage with the primary stakeholders (employers) especially entrepreneurs and SMEs (Small & Medium Enterprises) that are managed by women to better understand their plight.
The Employment (Amendment) Act 2022 should rightly be supported because it protects employees, but simultaneously the Government should have been prepared to soften the impact on employers. The Budget that will be tabled on the 7th October should consider the financial impact borne by the employers and I urge the Federal Government to prepare:
- Incentives such as the payment of wages for SMEs either entirely or where a majority of workers are women; and
- allowances for employers to find replacements for the duration of the said leave.
Government’s assistance in this manner will ensure that this amendment to the law will not unnecessarily discriminate either the mother or father that requires their maternity and paternity leave respectively, without which may cause them to lose their jobs. This may in turn encourage employers to hire young women, indirectly supporting their employability. Remember, many of these businesses and companies have only started to recover from the economic hardship brought about by COVID-19, and are in no position to fork out large sums of expenses for their employees when they themselves are struggling to break even. If all stakeholders don’t come together to have a say in the decision-making, all good deeds from this amendment will only prove fruitless.