is Flexible Working Arrangement Mandatory in Malaysia

Flexible Working Arrangement (FWA) is not mandatory in Malaysia. However, under the Employment Act 1955 (Amendment 2022), employees have the legal right to request flexible working arrangements, and employers must formally respond.

Flexible working arrangements have become a common discussion point across Malaysian workplaces, especially after recent labour law updates. Many assume that companies must now offer remote work or flexible hours, but the reality is more nuanced and let’s be frank here, more complicated than that.

Hence as per our labour law series guide, our PR agency will break down what the law actually says, how companies apply it in practice, and what both employees and employers should realistically expect.

What Does Malaysian Law Say About Flexible Working Arrangements?

Under Section 60P of the Employment Act 1955, employees can formally apply to vary:

• Working hours
• Working days
• Place of work (including remote work)

And under Section 60Q, the request must be made in writing, and employers are legally required to:

• Review the application
• Approve or refuse within 60 days of receiving it
• Respond in writing, and if refusing, state the ground of refusal

This provision was introduced to support modern workforce needs while balancing employer operational control.

Yet if you noticed the wording the law creates a process obligation, not an outcome obligation.

Is Flexible Working Arrangement Mandatory for Employers?

Under Section 60P of the Employment Act 1955 (Amendment 2022), employers are not legally required to approve any flexible working request. The law does not compel companies to:

• Offer hybrid work arrangements
• Allow remote or work-from-home setups
• Approve flexible working hours

Instead, the legislation introduces a formal process requirement, ensuring that:

• Employees have a legal right to submit an FWA request
• Employers must respond within 60 days
• Any rejection must be supported by valid business reasons

“The Department of Labour’s Flexible Work Arrangements Guidelines state that employers must respond in writing within 60 days, and if rejecting an application, the grounds for refusal must be stated in writing, with the request considered in a non-discriminatory manner.”

Right to Request vs Right to Approve

Why Are Employers Still Rejecting FWA Requests?

Approval depends heavily on operational realities, not just policy.

In Malaysia, many businesses operate under constraints that limit flexibility. It’s impractical to ask a client-facing worker like a cashier to work from home and not tending the shop/

Common Reasons for Rejection

• Role requires physical presence (retail, manufacturing)
• Team dependency or coordination issues
• Data security or compliance concerns
• Lack of infrastructure for remote work

Many Malaysian SMEs face additional constraints such as cost, manpower, and workflow design, which further limit flexibility.

Where Employers May Cross the Line

That said, not all rejections are handled properly. Issues arise when decisions are not grounded in business needs and accusation of unfair dismissal or unfair treatment will arise.

These examples may raise red flags, especially if challenged:

• Blanket statements like “we don’t allow remote work” without justification
• Personal bias against certain employees or roles
• Approving similar requests for some staff but rejecting others without clear reasoning
• Penalising employees for submitting a request
• Failing to provide any explanation at all

In other words: Employers are allowed to reject FWA requests, but the reasoning must be consistent, documented, and job-related.

Strategies for Effective FWA Implementation in Malaysia

While the law provides a framework, successful implementation requires careful consideration of business sustainability and employee wellbeing.

Companies that manage FWA well tend to focus on consistency and transparency.

1. Define Clear Eligibility Criteria

Not all roles qualify for flexible arrangements. Employers should:

• Identify roles suitable for remote or hybrid work
• Set expectations based on job function, not employee preference
• Avoid inconsistent approvals across similar roles

2. Set Measurable Performance Metrics

FWA works best when output is clearly defined, and prevents physical biases too.

• Use KPIs instead of time-based supervision
• Track deliverables, deadlines, and responsiveness
• Align expectations between managers and employees

3. Establish Communication Protocols

A common failure point in FWA is poor coordination.

• Set fixed check-in times or team sync schedules
• Use collaboration tools for visibility (task tracking systems like ClickUp)
• Maintain clear escalation channels

4. Start with Trial Periods

Instead of permanent approvals, we highly recommend doing phase testing:

• Implement FWA on a trial basis (3 months)
• Review impact on productivity and teamwork
• Adjust based on results

Do not implement straight away: Get feedback from employees. FWA may be a blessing for certain employees while adding on stress and workload to others.

How Should Employers Handle FWA Requests Properly?

Handling FWA requests reflects how a company manages fairness and compliance, it is a business issue as it is a PR issue.

Malaysia has robust labour protections under the Employment Act 1955. While flexible working itself is not guaranteed, how employers respond to requests can carry legal and reputational implications.

“Workplace cultures that label employees as “less committed” or “not loyal” simply for requesting flexibility may expose the organisation to complaints or disputes. The Industrial Court of Malaysia will side with the employees if sufficient evidence is enough.”

Our Recommended Process

• Acknowledge request formally
• Assess operational impact
• Consider alternative arrangements
• Document decision clearly
• Communicate within 60 days

Even when rejecting, offering a modified option can improve retention and morale. Employees who request FWA may have personal reasons such as taking care of a loved one or personal health reasons.

How Should Employees Approach FWA Requests

A well-prepared request helps, and while the decisions ultimately rest on the company’s hands, there are ways to improve chances.

Best Practices When Submitting an FWA Request

Employees should aim to:

• Explain how productivity and responsiveness will be maintained
• Suggest measurable outcomes or reporting KPIs or OKRs
• Align the request with business needs and team workflows
• Offer a trial period instead of requesting permanent changes immediately
• Show flexibility and willingness to compromise if needed

Approaching the conversation collaboratively often leads to better outcomes than treating FWA as an entitlement.

Example: Preference vs Performance Framing

Instead of saying: “Boss, I want to work from home three days a week.”

A stronger approach may be: “Boss, I propose working remotely two days weekly while maintaining existing KPIs, response times, and weekly reporting.”

Notice how you change the subject from “me” to the company’s operations? It shows you thought about how FWA will affects work, company and colleagues.

Preference to performance, that’s how you do it.

For example:

• A marketing executive may propose scheduled virtual check-ins and campaign reporting
• An account manager may commit to being physically present during client meetings or peak operational periods

Small adjustments like these can make requests appear more practical and business-friendly.

What Happens If An Employer Ignores an Employee’s Request?

If an employer doesn’t respond within 60 days, they may be breaching the process requirement under the Employment Act.

Employees can do the following:

• Follow up in writing (email/letter) and keep records of your submission date.
• Ask HR for a written outcome (approval or refusal) and, if refused, the grounds for refusal.
• If the silence continues, you can consider raising the issue with the Labour Department (JTKSM) as a compliance/process concern.

Just keep expectations realistic: the law supports your right to a response, not an automatic approval.

Flexible Working Arrangement in Malaysia Is Not Mandatory, But It Matters

Flexible working arrangements are not compulsory under Malaysian law, but they are increasingly becoming part of workplace expectations.

Companies that handle flexibility well tend to attract and retain stronger talent, and those that ignore it may face higher turnover.

If your organisation is navigating workplace perception challenges, our PR Agency can help!

We help brands strengthen public confidence through strategic digital PR and reputation management. Our online visibility strategies, and sentiment-shaping campaigns, help companies influence how they are perceived across search, media, and digital conversations.

If you’re skeptical, that’s normal, simply contact us and give us a call and we will walk you through.

Frequently Asked Questions About Flexible Working Arrangements

What Is Flexible Working Arrangement In Malaysia?

It refers to changes in working hours, days, or location that employees can formally request under Malaysian labour law.

Is Flexible Working Mandatory For Employers?

No. Employers are not required to approve requests, but they must respond within 60 days.

Can My Employer Reject My FWA Request?

Yes, as long as the rejection includes valid business reasons.

How Long Does It Take To Get A Response?

Employers must respond within 60 days of receiving the request.

Do All Jobs Qualify For Flexible Working?

No. Roles that require physical presence are less likely to be approved.

Can an employer approve my request but change the terms?

Yes. Some employers respond with a modified option (fewer remote days, fixed core hours, or specific in-office days). If it still works for both sides, a revised arrangement is often the best middle ground.