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Amendment to Employment Act 1955 falls short in many areas, says WAO

KUALA LUMPUR: Amendments to the Employment Act 1955, which was announced on Oct 25, leaves much to be desired, said the Women's Aid Organisation (WAO).

It said that while some positive reforms have been included in the amendments; the Bill falls short in many areas.

On maternity leave, which was extended from 60 to 90 days, though welcoming, WAO said it falls short in the International Labour Organisation (ILO) standard of 98 days.

Touching on Section 37aa, which is being revised, it said the provision permits women who are not entitled to maternity leave pay to return to work during her maternity period (to earn income) if declared fit. The proposed new Section 37aa would permit any woman (including women entitled to maternity leave pay) to return to work during the maternity leave period.

"On paper, this gives women a choice, but there may be room for abuse – if employers coerce women to return to work early," said WAO in a statement today.

On the removal of Section 44A of the legislation which extends maternity benefits to all women workers regardless of income, the explanatory statement of the Bill notes this is because the blanket wage cap is being revised or lifted.

"However, the First Schedule – where the wage cap is – is not being amended by the Bill. This must be clarified, or it could mean that maternity benefits would only apply to women workers earning RM2,000 or less."

WAO added that the changes also do not include protection against discrimination for job-seekers.

"This means employers can continue to discriminate against pregnant (and potentially pregnant) women looking for jobs."

Touching on Paternity leave whereby the amendment introduces three days of paternity leave, WAO said that although this is progress, three days however is not enough.

"We urge the government to introduce at least seven days of paid paternity leave – the same as what public sector workers currently enjoy."

It added that the Bill also empowers Labour Department Director-General to investigate employer-employee disputes on discrimination.

"However, discrimination is not defined. Discrimination must be defined to include direct and indirect discrimination, and grounds for discrimination (including gender, religion, race, or disabilities) should be spelt out."

"Concerningly, the Bill does not prohibit discrimination. Employers can be penalised for failing to comply with the Director General's order, following an investigation. But the employer will not be penalised for the discrimination itself."

WAO said this means job seekers will not be protected against discrimination and employers can discriminate during recruitment – whether based on race, religion, gender, disability, or another status.

The Bill, WAO said, also requires employers to post up a notice to raise awareness on sexual harassment.

"Without any standards and accountability, this change is almost meaningless. Employers should be required to adopt sexual harassment policies with minimum standards, and display that policy conspicuously.

WAO said though the Bill increases the fine for employers who do not comply with sexual harassment provisions in the Act, employers could only be fined for not investigating or responding to a complaint of sexual harassment. An employer can avoid a penalty for example, simply by carrying out a shoddy investigation.

"The Director-General must be given powers to review sexual harassment investigations and decisions by employers."

On the term "domestic servant" being replaced with "domestic employee" in the bill, WAO explained that domestic workers however still do not enjoy many rights of other employees.

"The Bill must amend the First Schedule to extend these rights to domestic workers."

WAO also welcomed the bill in deleting provisions that restrict women's employment at night and in underground work.

It said while this is positive, the Bill should also include standards or steps that need to be taken to ensure the safety of women workers.

"We urge the government and Members of Parliament to address these concerns before passing the Bill into law".

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