As an employer in Malaysia, it is vital to understand your legal obligations regarding maternity leave and benefits. Supporting your female employees during this crucial period not only ensures compliance with the law but also fosters a positive and inclusive workplace culture. Let's explore what the Employment Act 1955 entails and how you can best support working mothers in your organisation.
Legal Entitlements
Maternity Leave:
Under the Employment Act 1955, every female employee is entitled to a minimum of 98 consecutive days of maternity leave for each confinement. This recent amendment, effective from January 2023, marks a significant improvement from the previous 60 days.
The maternity leave should commence no earlier than 30 days before the expected date of confinement and no later than the day immediately following the confinement. Any leave taken earlier than 30 days before the confinement won't be counted as maternity leave and won't qualify for the maternity allowance.
Maternity Allowance:
To receive maternity allowance, an employee must have been employed for at least 90 days in the nine months immediately preceding her confinement. The allowance is paid at her ordinary rate of pay or at a rate prescribed by the Minister, whichever is higher. This allowance is treated as wages during the eligible period and is crucial for ensuring financial stability during maternity leave.
It's important to note that if an employee has five or more surviving children, she is not entitled to maternity allowance. Additionally, if she fails to notify her employer of her pregnancy within 60 days before the expected confinement, her maternity allowance may be suspended until such notice is given.
Employer Obligations and Best Practices
Non-Discrimination and Job Security:
Terminating a female employee during her maternity leave or on grounds of pregnancy is not only unethical but also illegal. Such actions are considered offences under the Employment Act unless due to business closure, misconduct, or a wilful breach of contract. Ensuring job security during this period is critical for maintaining trust and morale within your workforce.
Medical and Health Support:
Providing medical support related to pregnancy and confinement is a best practice that demonstrates your commitment to employee well-being. Employers are encouraged to cover the costs of necessary medical treatment. This support can significantly reduce stress for expectant mothers and ensure a healthier work environment.
Notification and Documentation:
Maintaining clear communication and proper documentation is essential. Ensure that your employees notify you of their pregnancy and intended start date of maternity leave in a timely manner. Keeping accurate records of all maternity leaves and allowances paid is a statutory requirement and helps in avoiding any disputes or misunderstandings.
Best Practices for Supporting Working Mothers
Flexible Work Arrangements:
Offering flexible work hours or remote working options can greatly assist pregnant employees and new mothers. These arrangements help manage work-life balance and reduce the physical and mental stress associated with pregnancy and early motherhood.
Creating a Supportive Environment:
A workplace that supports and respects working mothers is crucial for employee retention and satisfaction. Providing amenities such as nursing rooms, childcare support, and opportunities for professional growth can make a significant difference. Fostering an environment where working mothers feel valued and supported will enhance their productivity and loyalty.
Clear Communication:
Transparent communication regarding maternity leave policies, entitlements, and procedures is vital. This clarity helps set expectations and ensures that both employers and employees are aware of their rights and responsibilities. Regularly updating your employees about any changes in policies or legal requirements is also beneficial.
Conclusion
By adhering to these legal requirements and adopting best practices, you can create a supportive and inclusive work environment for your female employees. This approach not only ensures compliance but also promotes the well-being and productivity of working mothers, ultimately benefiting your organisation as a whole.
If you have any questions regarding this article or need further assistance, please feel free to contact our managing partner, Eugene Yeong.
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