PUTRAJAYA, April 9 — The implementation of flexible working arrangements (FWA) by the private sector must be implemented in an orderly, phased manner and based on clear guidelines, in line with the provisions of the Employment Act 1955 in particular (Sections 60P and 60Q), according to the Ministry of Human Resources (Kesuma).

The section, among others, gives employees the right to apply for flexible working arrangements and requires employers to provide written feedback within a specified period.

In a statement today, Kesuma announced that FWA is not only limited to working from home (WFH) but also includes other forms of flexibility such as hybrid work models (combining work in the office and at home), flexible working hours and flexible work arrangements (compressed work weeks, shifts and output-based work).

“Kesuma would like to emphasise that employers cannot take action such as salary cuts or reductions in benefits against employees who implement WFH, unless there is a new agreement involving changes to overall working hours.

“This guarantee is important to ensure that the rights and welfare of employees continue to be protected and to give the workforce confidence to adapt to more flexible working arrangements,” said Kesuma.

According to Kesuma, TalentCorp’s latest findings through the implementation of the FWA initiative since 2023 to date show that more than 3,000 organisations have implemented FWA, benefiting more than 1.2 million employees.

Kesuma said that 62 per cent of employers reported increased productivity during structured implementation of FWA while 70 per cent of employees recorded increased job satisfaction as a result of time and location flexibility.

“More than 90 per cent of organisations reported increased employee engagement and a decrease in employee turnover between 15 per cent and 20 per cent,” said Kesuma.

It said the findings prove that the implementation of FWA not only supports the continuity of organisational operations in challenging situations, but is also able to increase productivity, strengthen work-life balance and contribute to the retention of talent in the national labour market.

Kesuma also takes seriously the psychosocial well-being issues that may arise following the implementation of FWA and WFH, including the risk of stress, work-life imbalance and social isolation as well as communication challenges.

In this regard, Kesuma urges employers to ensure that the implementation of FWA is supported by clear work management, empathetic communication, reasonable working hours and the provision of mental well-being support such as access to counselling.

Employers can refer to the Guidelines for Assessment and Management of Psychosocial Risks in the Workplace (PRisMA) 2024 published at https://dosh.gov.my/wp-content/uploads/2025/02/Guidelines-on-Psychosocial-Risk-Assessment-and Management-at-the-Workplace-2024-1.pdf as a proposed intervention to strengthen the protection and support for the mental health of workers. — Bernama