REALIZING the importance of human capital in the Richardian sense the Government is constantly moving in the direction of better protection and remuneration of the workforce.
This is reflected in the Ministerial Orders on Minimum Wages every two years since 2018, the amendments to the Industrial Relations Act 1967 in 2020 and the Employment Act 1955 in 2022.
The amendments to the Employment Act 1955 which initially were to come into effect as of 1st September 2022 is now deferred to 1st January 2023.
Identical and corresponding amendments to the Sabah Labour Ordinance (“SLO”) by Parliament are being awaited
A recent Federal Court decision has confirmed that the hotel industry cannot use a service charge to supplement employees' wages in order to meet the minimum threshold for wage requirements. While the decision may be unpopular among hoteliers and related or similar industries, it was inevitable. The long-term impact that it may have on society outweighs any likely detriment that it may cause to a particular industry.