KUCHING: The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) is advocating to all its memberships across the state to fully comply with the newly amended Sarawak Labour Ordinance (SLO), which officially came into force on May 1, 2025.
The amendments represent a sweeping overhaul of labour regulations in Sarawak, aimed at aligning the state’s labour standards with Peninsular Malaysia’s Employment Act 1955 and international best practices.
Employers are advised to promptly update their human resource policies and workplace operations to meet the updated legal requirements, and ensure the protection of both employers’ and employees’ rights.
“These amendments are a significant step toward creating a fairer and more secure working environment in Sarawak.
“We urge all our members to stay informed and make the necessary adjustments to avoid penalties and protect their workforce.
“Compliance will not only ensure legal adherence but will also enhance business resilience and attract quality talent,” said ACCCIS President, Datuk Seri Tan Jit Kee.
“Among the key changes introduced are: expanded coverage to include all employee categories (not limited to those earning RM2,500 and below), a revised overtime pay ceiling from RM2,000 to RM4,000, and reduced weekly working hours from 48 to 45.
“Maternity leave has also been extended to 98 days, with new provisions granting seven days of paid paternity leave for eligible fathers,’ he said.
Other important updates include the separation of sick and hospitalisation leaves (14 and 60 days respectively), six mandatory public holidays, enforcement of bank-based salary payments, and legal provisions allowing employees to apply for flexible work arrangements.
Furthermore, the ordinance now mandates improved living conditions for employees in employer-provided accommodation, and significantly increases penalties for non-compliance – from RM10,000 to RM50,000.
“It also sets the minimum employment age at 13, prohibits discrimination, forced labour and sexual harassment, and defines types of work prohibited for children and adolescents,” he added, emphasising on the latest amendments to the SLO.
ACCCIS believes these reforms will elevate workplace standards, enhance employee well-being, and strengthen Sarawak’s appeal as an equitable and competitive business environment for future growth.
