What employers should include in a Flexible Working Policy and other recommended documents

Pursuant to variations contained in the Employment (Amendment) Act 2022 (“the Amendment Act”), which the governing administration has introduced will appear into force on 1 September 2022, personnel in Malaysia will be allowed to apply to their employer for a Flexible Functioning Arrangement (“FWA”). (For a far more comprehensive search at the variations beneath the Amendment Act, examine my before post: “Malaysia Employment Act amendments: 7 important modifications for companies to note”)

The introduction of FWAs below the Amendment Act is the to start with time that FWAs have been formally recognised in Malaysia, and may well be the to start with of lots of these kinds of adjustments — the authorities has also shared that it is conducting scientific studies on the feasibility of a four-day functioning week. Malaysian businesses can anticipate FWAs to grow to be extra commonplace in the near future, and should start out planning now. Quite a few of my clients are by now placing in spot the essential versatile doing work insurance policies and other relevant documents to not only be certain that they are not caught unprepared arrive the 1st of September, but also to lay the foundations for the expected changes in the future couple of several years.

This report sets out the crucial points that will need to be protected in a Versatile Operating Policy, and also other encouraged administrative/HR documents that employers should strongly think about placing into spot to smoothly accommodate FWAs.

What the Amendment Act claims

The basis of any interior paperwork and guidelines should generally be what is basically mentioned by the legislation. The FWA provisions in the Modification Act are quite very simple. FWAs are presented under the Modification Act by the introduction of a new Component XIIC.

A new Part 60P states that an worker could utilize to an employer for a adaptable performing arrangement to differ the —

• hours of perform
• days of function or
• position of operate,

in relation to his work.

The application procedure is established out in a new Portion 60Q, which states that:

• The employee’s adaptable working arrangement application will have to be in writing “and in the kind and method as may perhaps be determined by the Director General” (for now, no direction has been built pertaining to the kind/method of the software).
• The employer need to approve or refuse the application within just 60 days from the date the application is obtained, and tell the worker in creating of the final decision.
• If the application is refused, the employer have to condition the floor of such refusal.

For that reason, these are the key legal factors which need to be covered by any inside procedures, and which will then be supplemented by articles to handle many other practical issues.

Critical points that have to have to be covered in a Adaptable Working Policy

Even just after the Modification Act comes into power, it is not obligatory for companies to place in position a Versatile Doing the job Coverage. Nevertheless, introducing these kinds of a policy is a recommended best observe, as doing so will present clarity for the management and staff on what the employer’s posture is concerning versatile doing the job preparations. A very clear policy also signifies there will be certainty for all functions on how FWA purposes will be dealt with, and the Versatile Functioning Policy can be supplemented by an inner assistance document for HR/administration.

A Adaptable Operating Plan can vary in complexity and duration, from as simple as a handful of paragraphs on a single page, to a a great deal much more extensive policy. These are a several critical challenges which an successful Flexible Doing the job Plan really should handle.

1. The applicability, scope, and influence of the plan: It ought to be very clear from the outset which workforce the coverage applies to. This is particularly important for greater and multi-nationwide organisations which are very likely to have interaction staff on a vast assortment of diverse employment relationships, which includes component-time workforce, temp workers, secondees, and interns. The policy should also condition that while adaptable operating preparations are recognised by the firm, this does not indicate that all applications for these types of arrangements will be instantly approved, or that workforce are contractually entitled to this sort of preparations.
2. The different styles of adaptable working arrangements recognised by the enterprise: Whilst the Modification Act generally allows staff to utilize to differ the hours, days, and area of operate, an employer can present more facts by an inner Flexible Functioning Coverage. For case in point, the coverage can determine certain preparations these kinds of as temporary FWAs (exactly where workforce can apply for a FWA for a fixed interval of 3-6 months), or set change FWAs (where by employees can opt for either to work Monday-Wednesday or Wednesday-Friday). The profit of expressly environment out the diverse kinds of “company approved” FWAs is that it provides personnel with crystal clear alternatives to pick from, allows the organization to have some handle about the varieties of FWA applications that will be submitted, and also sets anticipations that FWA programs outdoors these options are likely to be turned down.
3. Any pre-identified problems or restrictions on flexible working arrangements: In addition to the precise forms of FWAs as stated in the past portion, the coverage really should also spell out the situations or limitations on people FWAs. For illustration, the company might permit an worker to do the job remotely, but issue to a limitation that the spot will have to be inside of the same country or inside of a specific distance from the business office, or that the employee have to be capable to be present in the office environment for a regular monthly in-man or woman assembly, or be capable to attend conferences at customers’ places of work. As an additional example, the corporation may possibly allow for minimized functioning hours subject to a least range of hours for every 7 days.
4. Obligations in relation to confidentiality and overall health and basic safety: Two important worries that businesses have when it comes to remote operating are in relation to confidentiality, and health and fitness and security. The Versatile Doing the job Policy must set out the expectations and obligations on workers who are permitted to get the job done remotely. The extent of these obligations will depend on the precise function, data obtain level, mother nature of get the job done, as perfectly as field-unique prerequisites. Some employers could have to have high-degree security in relation to files or components to be in place in the employee’s remote workspace. For wellbeing and basic safety, there ought to be bare minimum demands in phrases of machines and the issue of the workspace (or the prerequisite to have a selected workspace), and some employers may possibly want to mandate a health and basic safety inspection, or a self-evaluation checklist.
5. Prospective improvements to wage, versatile working allowances, or other advantages/remuneration: Depending on the sorts of FWAs specified in the policy (see higher than), it may well be feasible to spell out details of variations to payment as a outcome of an approved FWA. Alternatively, the coverage can normally describe that specified styles of FWAs will arrive with modifications to salary or added benefits — for case in point, a long lasting reduction in doing work hrs will mean that an employee’s current salary will be minimized, and potentially based mostly on a fixed system. For multinational businesses, an worker who will be functioning in a different place beneath a FWA might have to change to a distinct payroll place and have his/her income localised to his/her new spot based on the company’s pay scales in that jurisdiction. The plan can also consist of aspects of any new allowances as a consequence of a FWA (for illustration, distant workplace machines and established-up allowance), or any current allowances that will no more time be payable (for instance, travelling or parking allowances).
6. The company’s expectations of staff less than a FWA: A thorough Adaptable Performing Coverage should really also briefly established out the company’s expectatations of personnel who have been authorised to work below a FWA. This must incorporate the principles these types of as that personnel with decreased performing hrs are however predicted to entire their critical deliverables, show up at all scheduled conferences, and keep on to abide with the company’s processes and policies. It can also incorporate specifics where by appropriate, these as staying demanded to attend a minimum range of on-site conferences.
7. The application approach: A important part of any Flexible Doing work Coverage will be the application and acceptance process. In addition to the general applicability/scope segment which was stated previously mentioned, the segment detailing the application course of action can established out other eligibility standards. For example, the business may possibly make it clear that apps from staff in their probationary period of time, or who are currently undergoing a PIP, will not be accepted. This portion can established out how apps can be submitted (preferably the enterprise will also have a regular FWA software sort — see “Other advised documents” beneath), and the acceptance method. The place suitable, the policy should really also explain that any acceptance is conditional upon the worker signing a Versatile Doing work Arrangement or a supplemental document amending the appropriate conditions and problems of their existing work contract.

Other encouraged documents

Besides the Flexible Functioning Policy, it is also a advised very best follow for employers to have some or all of the adhering to documents in position:

1. Workflow or guideline for HR/administration: This is a confidential document for HR/management-amount personnel only, and will established out advice on how to deal with apps. This will involve environment out the appropriate persons-in-cost for handling, determining on, and responding to programs, as perfectly as the vital issues and suitable files. This is an essential direction doc to ensure that the proper course of action is adopted and the enterprise is not uncovered to any lawful risk.
2. Template FWA application variety: This standardised application type will be referred to in the Adaptable Doing the job Policy, and workforce will be strongly encouraged to use this sort when implementing for FWAs. Possessing a template in location will ensure that all the suitable facts is submitted as section of the application, and also will allow the corporation to remind staff members of the terms and situations that will be connected to prosperous FWA applications. If the Flexible Working Plan clearly sets out the distinctive styles of FWAs recognised by the firm (see “#2: The distinct types of flexible operating preparations recognised by the company” over), then the application variety can involve box-tick selections (for case in point, the employee can use for “FWA 4: Modify of days of function to Wednesday to Friday”).
3. Template approval or rejection letters: All over again, owning this standardised doc in put will make it easier for HR/management and make sure that the corporation is not uncovered to any lawful risk. The standard approval letter will list down all similar documents (for case in point, the FWA Arrangement or compliance checklist) and standardises all essential variations to the terms and situations of employment. The regular rejection letter will incorporate evidently-worded and lawfully-suitable good reasons for rejecting any FWA applications.
4. Template Flexible Operating Arrangement: The goal of this doc is to established out any adjustments to the current employment deal or phrases/ailments of work. Whether or not or not this has to be in the kind of a different agreement, an addendum to the work agreement, or a basic letter of undertaking by the staff, will count on the extent of the modifications demanded.
5. Compliance checklist for remote doing work preparations: This is the self-assessment checklist referred to above (see “#4: Obligations in relation to confidentiality and wellness and safety” earlier mentioned) and is a fairly regular doc that businesses who have workers performing remotely should currently be acquainted with.
6. Template FWA termination letter: This template is to convey any FWAs to an stop if essential. Having this in put will make sure that any legal adjustments that have been executed because of to the improve to a FWA will be correctly reversed where by needed.

Rewards of making ready a Adaptable Operating Coverage and the other advisable paperwork

When it is not obligatory for businesses to have a Flexible Working Policy or any of the other files proposed in this article, several Malaysian companies are by now making ready these files, and it is a recommended finest follow with many apparent advantages:

• It obviously communicates the employer’s position on FWAs to employees, and sets out the employer’s anticipations of any personnel who are taking into consideration FWAs, as perfectly as the repercussions of FWAs this kind of as adjustments to compensation and added benefits.
• Setting out the varieties of FWAs recognised by the employer will help to streamline the kind of FWAs that workforce will implement for. For employers with a big workforce, this is very important to make certain that there are not way too numerous versions in the sort of perform preparations.
• The standardisation and streamlining of the approach will also conserve a good deal of time for HR/administration and generate much more certainty in the approach from begin to end. This significantly cuts down exposure to lawful chance for any probable missteps.
• From a simple perspective, having a apparent Adaptable Doing work Policy will also enable to make it a lot easier to justify any rejections of FWA purposes that slide outside the house the parameters and circumstances established out in the coverage.

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