Finance & Compliance

Understanding Working Hours in Malaysia: Key Regulations and Practices

Winnie Lu

June 7, 2024

Ever felt lost in the maze of Malaysian working hour regulations? Fear not, HR heroes and management marvels! This guide unpacks everything you need to know about working hours in Malaysia, ensuring you're compliant and your employees are happy.

Normal Working Hours in Malaysia: What Constitutes Normal Working Hours?


According to the Malaysian Employment Act 1955, the normal working hours for full-time employees are regulated to ensure a balanced work-life dynamic. The law stipulates that an employee should not work more than 45 hours a week. This framework is designed to prevent overworking and to promote productivity and well-being among the workforce.

Does 45 Hours a Week Include Lunch Breaks?


A common question among employees is whether lunch breaks are included in the total working hours. Thankfully, the answer is simple: lunch break is not included in the 45-hour workweek. That means your employees get a well-deserved break to recharge without it impacting their total working hours. Think of it as a pit stop to refuel before conquering the rest of the workday.

Lunch breaks are not included in 45-hour workweek. (Photo: fauxels)

Part-Time Work Regulations: How Many Hours is Part-Time Work in Malaysia?


A part-time employee is someone whose average hours of work per week, as agreed between the employee and the employer, are more than 30% but do not exceed 70% of the normal hours of work per week of a full-time employee employed in a similar capacity in the same enterprise.

Therefore, if the average normal hours of your full-time employees is 45 hours per week. The normal working hours of part-time employees should not exceed 31.5 hours a week.

Overtime Regulations: What is the Maximum of Overtime Hours?


The Employment Act stipulates that employees should not work more than 104 hours of overtime in a month. This limit is crucial to prevent employee burnout and ensure a healthy work-life balance.

Employees are entitled to additional pay for overtime work, typically 1.5 times the hourly rate on weekdays and double the rate on rest days and public holidays. (Explore more : A Comprehensive Guide to Overtime Pay in Malaysia)

Weekend Work: Is it Illegal to Work on the Weekend in Malaysia?


Working on weekends in Malaysia isn't illegal. There are, however, some considerations. The law requires employees to have at least one rest day per week, which can be a weekend day or a designated weekday. If your employees do work weekends, it's crucial to compensate them accordingly.

Work on weekends is not illegal but compensation is needed. (Photo: George Milton )

Four-Day Work Week: Does Malaysia Have a Four-Day Work Week?


The concept of a four-day work week has been gaining traction globally, but it is not yet a standard practice in Malaysia. While some companies may experiment with shorter work weeks to boost productivity and employee satisfaction, it is not mandated by Malaysian labor laws. Employers considering a four-day work week must ensure compliance with the maximum weekly working hours stipulated by the law.

Special Considerations: Working Hours During Ramadan


For Muslim employees observing Ramadan, working hours may be adjusted to accommodate fasting and prayer times. Employers are encouraged to be flexible and considerate, potentially adjusting start and end times or offering longer lunch breaks to allow for rest and religious observance.

Common Misconceptions


And here are some common misconceptions:

Myth: Lunch Breaks Count as Working Hours


As mentioned earlier, lunch breaks do not count as part of the working hours. Employees should have a clear understanding of their actual work hours versus break times.

Myth: Part-Time Work Means No Benefits


Part-time employees are entitled to benefits proportionate to their working hours, contrary to the misconception that they do not receive any benefits.

Conclusion


In conclusion, understanding the standard working hours and related regulations in Malaysia is essential for fostering a fair and productive work environment. Both employers and employees should familiarize themselves with the Employment Act 1955 to ensure compliance and protect their rights. Whether considering part-time work, overtime, or the feasibility of a four-day work week, it is crucial to stay informed and adhere to the legal guidelines.

For more detailed information, refer to the Employment Act 1955.

By adhering to these standards, Malaysia aims to create a balanced and efficient workforce that benefits both employers and employees.

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