Flexible Working Arrangements in Malaysia: Employer and Employee Guide

Flexible working arrangements allow eligible employees in Malaysia to request changes to their working hours, working days or place of work. Sections 60P and 60Q of the Employment Act 1955 establish a formal application process for covered employees. An employer must approve or refuse a written application within 60 days and provide the decision in writing, including reasons if the request is refused.

What is a flexible working arrangement?

A flexible working arrangement (FWA) is a change to one or more aspects of an employee's normal working arrangements. Under section 60P of the Employment Act 1955, an employee may apply to vary:

• Working hours.
• Working days.
• Place of work.

A request might involve starting and finishing work at different times, working on a different pattern of days or performing duties from home where the role permits it.

An FWA request does not automatically create an entitlement to work from home or choose any schedule. The employer must consider the application and follow the statutory response process. Existing contractual terms and the relevant provisions of the Employment Act continue to matter.

The statutory framework is set out in Part XIIc of the Employment Act 1955.

How can an employee apply?

Section 60Q requires an employee to make an application in writing and in the form and manner determined by the Director General of Labour. Where a collective agreement applies, the request must also be consistent with its relevant terms.

A practical written application should identify:

• The employee and their current role.
• The type of change requested.
• The proposed working hours, days or work location.
• The proposed start date and, where appropriate, duration.
• The operational reasons or supporting information relevant to the request.

These items are practical recommendations for a complete HR record, rather than a claim that every item is independently mandatory under the Act.

Employees should submit requests through the employer's established HR channel and retain a copy. HR should record the date received because it determines the statutory response period.

What must an employer do after receiving a request?

Under section 60Q, an employer must approve or refuse the application within 60 days from the date it is received. The employee must be informed of the decision in writing. If the request is refused, the employer must state the grounds for refusal.

A consistent review process can help employers make decisions transparently.

1. Record the date the written request is received.
2. Confirm which working arrangement the employee wishes to change.
3. Assess operational requirements, staffing, service coverage and the practical feasibility of the request.
4. Consider any relevant contractual or collective agreement provisions.
5. Make and document the decision within the statutory timeframe.
6. Communicate the outcome in writing and retain the record.

The Act does not mean every request must be approved. However, employers should avoid leaving applications unanswered or communicating a refusal without the written reasons required by section 60Q.

Example: handling a work-from-home request

Assume an employee submits a written request on 1 October to work from home every Friday. The employee's role includes tasks that can be completed remotely, but the employer also requires on-site coverage for certain activities.

A practical process would be to assess which duties can be performed remotely, whether colleagues can maintain the required on-site coverage and how performance and communication would be managed.

The employer should then approve or refuse the request within 60 days of receiving it and notify the employee in writing. If refused, the communication must state the grounds for refusal.

This example is illustrative. The final decision depends on the circumstances, applicable employment terms and operational requirements. The employee should not assume the arrangement has been approved merely because a request was submitted.

What should an FWA policy cover?

A written company policy can help employees and managers understand how requests are submitted and reviewed. It should explain the application channel, information to include, who assesses requests, how decisions are communicated and how approved arrangements are reviewed.

Employers may also wish to establish practical expectations concerning:

• Working hours and availability.
• Attendance and time recording.
• Confidentiality and information security.
• Equipment and access to company systems.
• Performance expectations and reporting.
• Meetings, communication and escalation procedures.
• Changes or withdrawal of an agreed arrangement.

These operational rules should be consistent with employment contracts, applicable legislation and any collective agreement. Employers should not use a general policy to override statutory rights.

JTKSM provides a guide to flexible working arrangements and the relevant statutory provisions. See the official JTKSM FWA guide.

Common mistakes employers should avoid

Poorly managed requests can create confusion and undermine employee confidence. Common mistakes include:

• Treating a verbal conversation as a substitute for the required written application.
• Failing to record when the application was received.
• Missing the 60-day response deadline.
• Refusing a request without providing written grounds.
• Assuming that every role can use the same working arrangement.
• Approving remote work without clarifying attendance, data security or performance expectations.
• Failing to keep a record of the decision and any agreed conditions.

A consistent process helps HR demonstrate that requests were considered and that decisions were communicated appropriately.

Managing flexible working requests with an HR system

As organisations grow, tracking applications through email alone can make it difficult to monitor response deadlines and preserve a clear decision history.

At hrmsystem.my, employers can manage attendance using GPS, a tablet kiosk with PIN, flexible working hours and work-from-home arrangements with daily reporting. These features can help organise attendance and work records, although the employer must still establish appropriate policies and comply with the statutory application process.

Employers can also consult the HR and payroll guides and the net salary calculator for related HR administration.

Frequently asked questions

Can an employee request to work from home under Malaysian law?
An employee covered by sections 60P and 60Q may submit a written request to vary their place of work. The request is subject to the statutory process and is not automatically approved.

How long does an employer have to respond to a flexible working request?
The employer must approve or refuse the application within 60 days of receiving it and inform the employee in writing. A refusal must include the grounds for the decision.

Must an employer approve every flexible working arrangement request?
No. The statutory provisions establish a right to apply and a process for responding, rather than an automatic right to the requested arrangement. The employer must follow the applicable response and written-notification requirements.