SHMR 2033- INDUSTRIAL RELATIONS LAW

SEMESTER 1 2023/2024 - SECTION 01

FACULTY: SOCIAL SCIENCE AND HUMANITIES

PROGRAM: SHMRH

GROUP REPORT (15%)

PREPARED BY: GROUP 6

NO NAME MATRIC NO

1 NURUL HAFIZAH BINTI ABDUL RAZAK A22HM0121

2 NURSYAZWANI BINTI AZME A22HM0113

3 NURUL HANANI BINTI HAZLI A22HM0122

4 NURUL HUDA SAFIAH BINTI MOHD A22HM0125

ZULKEPLI

5 NADIA NATASHA BINTI HASBULLAH A22HM0065

6 LYEETA ANN ANGELIA JONAILE ABDULLAH A21HM0045

LECTURER: DR HAKIMAH BINTI MUHAMMAD ZIN

 Table Of Content

Content Pages

1.0 Introduction…………………………………………………………...

2.0 Aspect Legislation…………………………………………………………...

3.0 Types of flexible work

3.1 Flexible Time ……………………………………………………..
3.2 Annualized Hours…………………………………………………
3.3 Sabbatical Leaves…………………………………………………
3.4 Job Sharing………………………………………………………..

4.0 Case Law……………………………………………………………...

5.0 Impact
5.1 Increase Employees’ Productivity………………………………...
5.2 Improve Work Life Balance………………………………………
5.3 Reduce Communication…………………………………………..
5.4 Attract Top Talent…………………………………………………

6.0 Recommendation
6.1 Develop Clear Policies and Guidelines………………………………….
6.2 Provide Effective Training and Education………………………………

7.0 Conclusion……………………………………………………………………
1.0 Introduction

Flexible working arrangements are becoming increasingly necessary in the modern work
world. They provide employees with the freedom to adjust their schedules to meet their personal
and professional needs. In a flexible working arrangement, employees can choose to work from
home, set their own working hours, or combine office and remote work. This benefits employees
by providing a better work-life balance, reducing stress and fatigue, and increasing job
satisfaction. Additionally, flexible working arrangements also benefit employers by improving
productivity, increasing attendance, and attracting high-quality talent. This is because employees
who can manage their own work schedules tend to be more motivated, focused, and
high-performing.

In this digital era, technology also plays a crucial role in enabling flexible working
arrangements, with tools such as video conferencing, collaboration apps, and project
management software facilitating effective communication and collaboration. With flexible
working arrangements, organizations can achieve greater success by understanding the needs and
desires of their employees. In today's fast-paced and dynamic work environment, flexible
working arrangements have gained significant importance. These arrangements offer employees
the flexibility to tailor their work schedules to accommodate personal commitments and optimize
productivity. Whether it's working remotely, adjusting working hours, or utilizing a hybrid
approach, flexible working arrangements empower individuals to strike a healthy work-life
balance. This, in turn, leads to reduced stress levels, increased job satisfaction, and improved
overall well-being. For employers, embracing flexible working arrangements can yield numerous
benefits. It fosters a culture of trust, boosts employee morale, and enhances retention rates. With
the right tools and policies in place, organizations can create a flexible and inclusive work
environment that promotes both individual and collective success.
2.0 Aspect Legislation

The management and property literatures are at odds about how to make physical and
human resources more adaptable so they can react to the ever-changing corporate environment. It
is frequently implied that the property must be more flexible if employees are working in more
flexible ways. For both of these resources, flexibility comes from a variety of sources. Regarding
personnel, flexibility can be characterized by contractual, temporal, and spatial components.
Property flexibility is derived from its physical layout, financial contracts, and functional
options. The flexibility needs in these two resources are not always directly related to one
another. It is evident, nonetheless, that the factors driving the need for office space are evolving.
The breadth and balance of activities that require office space have been directly impacted by the
growing usage of information and communications technology (ICT), which has also had an
impact on the underlying business processes. Another important factor in enabling staff
flexibility has been ICT. These factors together have resulted in the creation of a new workplace
management approach that distinguishes between the location, layout, and usage of the space.
Corporate real estate managers face a problem in understanding how space may effectively
support constantly evolving business operations, beyond the rhetoric of flexibility.. (Gibson, V. ,
2003)

The term "aspect legislation flexibility" describes an organization's capacity to modify

and conform to different elements of laws pertaining to workplace arrangements. This comprises
the rules and laws pertaining to employment-related topics such as flexible work schedules, leave
benefits, and working hours. Hence, the flexibility of legislation permits companies to establish
various work arrangements that satisfy their employees' needs and adhere to legal mandates.
Flexible work schedules, remote work, part-time or job-sharing arrangements, shortened
workweeks, and other choices can be included in this.

Organizations may encourage work-life balance, enhance employee happiness and

wellbeing, draw and keep top talent, and all of this by providing flexible working options.
Employee productivity and engagement rise as a result of its ability to help workers better
manage their own obligations and duties. In order to prevent legal issues or disputes, employers
need also make sure they are aware of and follow the legislation. Legal experts' advice may be
sought, rules and procedures may need to be reviewed and updated, and managers and staff may
need to receive training on the rights and responsibilities related to flexible work schedules.

Many of us in regular employment had the chance to engage in what is now called
"flexible working" during the pandemic, sometimes for the first time. Therefore, this meant that
if they had the necessary equipment, workers may work from home for at least some of the work
week. A lot of companies have never looked back. Also, the country's workplace flexibility is
about to enter a new era according to the terms of The Employment Relations (Flexible Working)
Act 1995, which will give employees more access to flexible work schedules and mandate
prompt answers from employers. Meanwhile, the Act aims to enhance employee well-being in
general and work-life balance in particular. In this piece, examine the main features of the Act
and discuss how it might affect Malaysia workers generally and employers in particular.

Employment (Amendment) Act 2022 :

“Part XIIc FLEXIBLE WORKING ARRANGEMENT

Flexible working arrangement

60p. (1) Subject to Part XII or anything contained in the contract of service, an employee
may apply to an employer for a flexible working arrangement to vary the hours of work,
days of work or place of work in relation to his employment.

(2) Where there is a collective agreement, any application made by the employee under
subsection (1) shall be consistent with the terms and conditions in the collective
agreement.

Application for flexible working arrangement

60q. (1) The employee shall make an application for flexible working arrangement under
section 60p in writing and in the form and manner as may be determined by the Director
General.

(2) Upon the application made under subsection (1), an employer shall, within sixty days
from the date such application is received, approve or refuse the application.
 (3) The employer shall inform the employee in writing of the employer’s approval or
refusal of the application under subsection (1) and in the case of a refusal, the employer
shall state the ground of such refusal.”.

Flexible contracts, flexible scheduling, and flexible location are the three main categories
of flexible work. Moreover, there is evidence that the first two forms of flexibility may have a
strategic impact on the duration and terms of space occupation, they may not have much of an
impact on an organization's requirement for office space. The most significant influence on the
workplace is probably going to come from employees' ability to work in a range of traditional
and non-traditional settings, or locational flexibility.

As seen in Figure 1, this locational flexibility has prompted the creation of new working
procedures. These procedures suggest that employees should look for the best location and
setting for the job rather than being restricted to a particular workspace, such as an office desk.
Employees are encouraged to work remotely as well as roam around the main office building.
(Gibson, V. , 2003)

Figure 1
 Employee locational freedom, both at the macro (moving between locations) and micro
(inside the workplace), will have significant effects on the office portfolio. Office space
management, size, layout, and location are all issues. Organizations might try to provide more
appropriate office space by recognising that place, space, and alternative workplace approaches
are three interconnected dimensions. Corporate property and facilities managers need to
understand the nature of work processes in general as well as what employees really do in an
office in order to provide appropriate workplaces.

3.0 Types of Flexible Work

Flexible work arrangement provides flexibility and choice for employees to start and end
their working day as long as the employee reaches the daily, weekly, or monthly hours of
working time set by the employer. In order to ensure employees meet flextime goals, companies
need to take several steps. The steps are to ensure that the company's goals are clear. The goal of
why the company implements flexible time for employees needs to be set so that the company's
productivity remains excellent. Companies need to make sure employees know their roles.
Employees understand and agree on the scope of work and working hours. Employees must
know exactly their responsibilities, what to do, and their co-workers when working flextime.
Companies also need to set proper working hours for employees who work remotely. Ensure
employees follow timelines and flextime guidelines and set dates they must physically work.

3.1 Flexible Time

Employees can make flexible time choices that can be made in the company. Among them
is work-sharing. Two full-time employees in the company work half an hour as part-time
employees. They perform all tasks, roles, and responsibilities and coordinate well and clearly.
Another option employees can make is a flexible work week. Employees work in shifts, work 4
days in a week and work 5 days in the following week. They can also work for ten consecutive
days and, after that, get four consecutive days off. Employees can also work 14 hours a day and
then get three consecutive days off. Flexible time also brings many benefits to employees and
employers. One of the benefits that employees get is good health. Often, inflexible work
schedules and sitting for too long in uncomfortable office spaces can affect the health of
employees. Therefore, with the availability of flexible time, which allows them to only have to
work from home or get enough time off to rest, employees are more enthusiastic to work in a
state of vigorous physical health and stable and regular mental health. While the benefit of
flexible time for the company is a safer work environment, Workers who work from home and
take turns with other workers who are likely to have infectious diseases can avoid the spread of
infectious diseases. A workplace that is not too crowded with workers can also reduce and avoid
any injuries during work. Therefore, the workplace environment is guaranteed to be safe and
comfortable while increasing employee productivity.

3.2 Annualized Hours

Annualized hours are one type of employment contract. Companies or employers pay
their employee’s wages according to the number of hours worked throughout the year.
Annualized hours have terms and conditions that must be met, including the start and end dates
of the annual hours contract, the type of leave that will be given to employees, and the terms of
employment. If the company implements annual hours, it will gain some benefits. Among them
is cost-effectiveness. Annual hours are more cost-effective because employees are only paid
according to the number of hours they work in a year. Employees do not have to work according
to the working hours of full-time employees. They only have to work when there is a need from
the company. This increases their level of productivity without experiencing a heavy workload.
Even so, the annual time also has some disadvantages. Employees experience workload every
hour that has been set. They have to complete the work according to the hours set by the
company or employer. They will also be forced by the employer to work overtime without
paying for the extra working hours.

3.3 Sabbatical Leaves

Organizations in the company will give sabbatical leaves to employees, such as sick leave,
vacation time, parental leave, or sabbatical leave. A sabbatical is when employees take a break
from work. During the vacation period, they remain permanent employees but are exempt from
doing work during the vacation. In order to get approval for this sabbatical, employees need to
apply several months in advance of the set date. They need to meet the criteria in order to get
approval from the company organization. In order to give sabbatical leave to employees, the
company needs to make clear arrangements to replace employees who take sabbatical leave. The
types of jobs that can get sabbatical leave are those that work in educational institutions. For
example, a professor who works at a university can take one or two semesters off to conduct
research in the field. One of the benefits that employees get when they take a sabbatical is that
they can overcome the pressure they face at work. They can calm their minds with enough time
and not be disturbed by the workload at work. With this, they can apply energy and positive
thoughts that make the work environment more orderly, enthusiastic, and positive when working
again.

3.4 Job Sharing

Job sharing is a type of work arrangement where two employee's do part-time to complete
the work of one full-time worker. This type of employee can reduce the employee's time at work.
This work arrangement can help employers retain experienced workers who seek a work-life
balance and reduce benefit costs for employers. Both employees can work in one position and at
different hours. Employees are responsible for finding ways to share workspaces, use computers,
and distribute tasks so as not to waste time. There are two types of this job which is the twin
model and the island model. In the twin model, employee’s share work and work together on one
project, while in the island model, employees share work and work independently of each other
and on different tasks. This type of employment benefits both employers and employees.
Employers always have protection and are able to offer jobs the job flexibility needed to retain
quality employees. For employees, it brings balance to their work and personal lives as they
complete work together.

3.5 Hybrid Work

Hybrid work is also one of the most flexible work arrangements. This type of work
combines working in the office and home. Employees can choose how and where they work,
either in the office or at home. The company gives employees the autonomy to plan their
working week in a way that is appropriate and in accordance with company policy. Hybrid work
can increase productivity and employee engagement in the workplace, and businesses can
operate more efficiently. There are four types of hybrid work hybrid at will, split week, manager
scheduling, and hybrid mix. First, the at-will hybrid, where workers can choose the day they
come and work in the office. They are not tied to a fixed work schedule like other workers.
Second, hybrid separation week. The company will determine the days for a hybrid employee to
work in the workplace according to the team and the task. The third type of job is hybrid
manager scheduling. The manager in the company is the one who selects and determines the
employees or teams to come to the office. Finally, the hybrid mix is a combination of all three
types of hybrid work.

4.0 Case Law

In the case of Jeyaraj a/l Kanapathipillai v Ranhill Bersekutu Sdn Bhd, (2012), in order
to reducing the workforce and improving cost effectiveness, job sharing is a key aspect of the
company need to restructure the organization to meet the expectations of applicant. All
departments are requested to identify workload that could be shared by others to reduce overall
workforce in the company. The issue with work sharing in this case was whether the company's
identification of job functions that may be performed by others constituted an allowed exercise
of power. The case gives unique insights into the employment law and industrial relations,
specifically the acceptable grounds for restructuring operations and their effect on workers.

In summary, Ranhill Bersekutu Sdn Bhd completed a reorganization exercise with the
goal of reducing its staff and increasing cost-effectiveness among employees. Jeyaraj who is the
claimant’s work function was recognized as one that could be performed by others where
resulting in his redundancy and possibly to be fired. The claimant claimed that his dismissal was
unfair because he considered the restructuring exercise that led to his redundancy was not valid.
The case gives insights into the complexity of employment law and industrial law relations,
specifically the legal justifications for restructuring operations and their effect on workers.
5.0 Impact

Since Covid-19 became a pandemic, flexible working arrangement (FWA) has become
popular options for both employers and employees to continue their work. This means they do
not have to follow the usual 9-to-5 office schedule. Both employers and employees would like
this change because it allows them to keep working. The traditional setting is slowly changing to
be more flexible. The companies are now accepting flexible work arrangements and understand
that it is important to create a work environment that fits with everyone’s lives.

5.1 Increase Employees’ Productivity

Flexible work arrangements really contribute to increasing employees productivity

because they break away from traditional rules. One important thing is that they let different
people work in ways that suit them. Not everyone does well with a fixed 9-to-5 schedule and
flexibility lets workers choose hours that match their natural flow. This helps them concentrate
and get more work done. Being adaptable like this meets individual needs, making a work
environment where people can do their best.

Furthermore, flexible work arrangements give employees a sense of autonomy and

control over their work. When people can decide when and where to work, it makes them feel
more in control and responsible for their tasks. This sense of control can increase their
motivation and engagement, making them more productive at work. Being able to choose where
they work, whether at home, in a shared workspace, or a regular office, it enables employees to
set up their work environment in a way that helps them work better.

5.2 Improve Work Life Balance

Moreover, the employees manage to improve their own work life balance. Clark (2000)
defined work life balance as the capability to successfully balance both household and work
responsibilities no matter what gender and age. With FWA, employees are able to handle their
professional and personal life. FWA introduces a “win-win” outcome if implemented in the
company. (Wheatley, 2017). While completing their tasks to achieve the company's goal, they
can also solve their problems anytime even during working hours. For example, if they get a call
related to their personal problems, they can ask permission from the boss to leave and rush to
their home to solve the problem.

5.3 Reduce Communication

However, some employees might be affected with FWA because they are unable to adapt
to the new working environment. The employees might already create a close friendship among
themselves. When FWA is implemented in the company, they struggle to communicate with their
colleagues as usual. For example, working from home allows the employees to do their job at
home separated from their colleagues. In this working environment, they cannot interact with
each other physically. When people are required to adapt to a new environment, it is common if
some people might fail to do so. They may feel loneliness due to being apart from their
colleagues since they cannot communicate with them while working. (The Impact of Flexible
Work on Employee Motivation and Job Performance, 2023). As a consequence, they feel stress
with work because one of the ways they cope with work related stress is by communicating and
joking around with the employees.

While for new employees, they cannot communicate well with colleagues since they do
not know each other. FWA allows employees to decide their working schedule freely. The new
employees who just start to work are required to choose their working schedule without having
proper introduction in the company. They need to work together to achieve the company's goal
but due to communication and work-based relationships, they just focus on tasks rather than
building a friendship among themselves. They do not know how to interact with each other
unless regarding work related issues. For the whole FWA period, employees who work flexible
schedules may encounter difficulties in collaborating with their peers and might feel
disconnected from the team’s and organization’s overall objectives. (The Impact of Flexible Work
on Employee Motivation and Job Performance, 2023)

5.4 Attract Top Talent

Most people think that FWA only benefits the employees. However, the company also
gains benefits from the flexible work arrangement. People would rather choose a company who
implements FWA rather than traditional settings. According to the research made by
International Workplace Group (IWG) in 2019, 80% of U.S employees would choose a company
that offers FWA. (IWG, 2019). They would rather be turning down any job offer from prestige
companies that do not implement FWA. Furthermore, they agree to be more loyal to the
company with FWA. They value flexibility in work so much that it outweighs their desire for a
more well known title or position.

It would cost a lot of money to train one employee. If many employees resign due to no
further planning to implement FWA, the company will lose a lot of talented and capable workers.
Even though the company offers a pay rise from the other offer, the employees would rather
choose a company with flexible work arrangement. In order to ensure the company has sufficient
manpower, it will need to recruit new employees. If they do not have any working experience,
the company needs to spend money to send them to the training to enhance their competencies.
In the U.S, the average cost to recruit, employ, and train a new employee for a company is
around $4,000. (Howington, 2019). By implementing FWA in an organization, it could prevent
the employees from choosing other companies and the company could manage to avoid spending
too much money for new manpowers.
6.0 Recommendation

Initiating the flexible work arrangement (FWA) can be challenging as the organization is
still adapting to the changes. FWA has evolved as an essential approach in modern workplaces,
providing multiple benefits to both businesses and employees. In Malaysia, where the work
landscape is continually shifting, adopting and efficiently implementing FWA practices is vital in
order to keep up with the workforce trend. It also eventually greatly improves productivity, job
satisfaction, and work-life balance. Implementing flextime and work-from-home arrangements at
an organizational level requires a thoughtful approach that considers the needs of both the
company and its employees. So the following discussion is about the recommendations to
implement the flexible work arrangement within the organization.

6.1 Develop Clear Policies and Guidelines

The Malaysian Employers Federation (MEF) president, Datuk Syed Hussain Husman,
has emphasized the recommendations of providing clear guidelines on the rights and obligations
of organizations.(Tilo, 2022a) Each company that wishes to enforce the FWA approach
supposedly crafts clear and comprehensive policies that outline available flexible options,
guidelines for their use, eligibility criteria, and the process for requesting such arrangements.
Comprehensive policies and guidelines are the core of an organization's successful execution of
flextime and remote work practices. In addition, these documents should meticulously outline
the framework, expectations, and procedures governing flexible working arrangements,
aligning with the specific needs and context of the organization in Malaysia. The policies should
align with the Malaysian Employment Act 1955, particularly Part XII (c) Flexible Working
Arrangement, ensuring compliance with legal requirements while accommodating flexibility.
(Tilo, 2022b) This included decision-making on employee requests for FWAs, rejecting
employees’ applications, consequences for employers who fail to comply with the FWAs
requests, and the appeal process if applicable.

A well-defined policy or guideline ought to explicitly define eligibility criteria for

employees seeking to avail of remote work or flexible work schedules. State clearly the
procedure for requesting these arrangements, including the documentation required, the
deadlines for filing the request, and the channels that it must be made through.(Geyzel, 2022)
Make sure that these processes adhere to Malaysian labor regulations and comply with the goals
and objectives of the organization. Provide specific instructions concerning working hours for
employees under flexible arrangements. Determine the core hours during which employees must
be present for meetings, collaborative work, or communication Define specific requirements for
responsiveness, including preferred channels of communication and response periods, to assure
effective teamwork. Address the data security measures for employees working remotely.
Design the standard of procedures for securing company data, which include the use of secure
networks, VPNs, encryption technologies, and regulations for managing sensitive data. Highlight
the importance of preserving confidentiality and adhering to the policies of organization
regarding information security.

6.2 Provide Effective Training and Education

Training and education are essential elements in enabling the successful implementation
and adoption of flexible working arrangements (FWA) within an organization. Comprehensive
training not only raises employees' awareness of the significance of FWA but also prepares them
with the expertise and knowledge necessary to navigate and flourish in these arrangements
within the boundaries of the labor law. This approach promotes a culture of compliance,
responsibility, and effective use of flexible working approaches, resulting in a legally sound and
productive work environment in accordance with the industrial relations law of Malaysia.

Start off the FWA initiative with employee orientation training sessions to educate them
concerning the concept, goals, and benefits of flexible working arrangements. Specify how these
arrangements correlate with the objectives of the organization, improve work-life balance, and
boost productivity This session seeks to raise employees’ awareness and anticipation. Plus,
during the session, the trainer should cover topics related to the industrial laws in Malaysia,
such as the Employment Act 1955, regulations on working hours, rest periods, overtime, and
employee rights. Emphasize how FWA implementation must align with these laws in order to
protect both the organization and its employees.
 Conduct extensive training sessions on the organization's FWA regulations, policies,
and processes. Provide detailed information and promote awareness about FWA compliance and
management, including safety and health, guidelines, and work-related accidents that might
occur during the implementation of FWAs. When working under flexible arrangements, make
sure employees understand their privileges, rights, obligations, and the company's desired
outcomes. To answer employee questions or concerns about FWAs and legal compliance,
provide additional assistance using resource libraries, FAQs, and helpdesk services. Encourage
employees to use open communication channels to get clarity or guidance on legal issues
connected to flexible working methods.

7.0 Conclusion
In a nutshell, the comprehensive findings of the report on flexible working arrangements
suggest implementing practices that can yield numerous advantages for both parties, employees
and employers. A flexible working arrangement is a crucial situation that is important for
employers to provide the best for their employees. These include enhancement of work life
balance, improve productivity, decline the communication barriers and the ability to attract
top-tier talent. Not only that, flexible work arrangements empower individuals to customize their
work schedules aligned with their personal commitments, especially for working parents that
need to handle chores.
Organizations need to optimize productivity and contributing in order to reduce
employees' stress levels, heightened job satisfaction and overall well-being. It is important for
employees to be willing to do work at all costs. From the employee’s perspective, when
employers embrace flexible working arrangements, it establishes a culture of trust among
workers and improves retention rates. Organizations may create a flexible and inclusive work
environment that fosters both individual and group achievement by establishing suitable rules
and standards.
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