Can an Employer Change an Employee’s Working Hours?

Written by: Izz Murtada

Many Malaysian companies change their working hours from time to time. Maybe the shop wants to open earlier. Maybe the factory needs a new shift. Maybe the office wants everyone to start at 8.30am instead of 9am. These changes sound simple, but they can upset employees if they are done the wrong way.

So, can an employer change an employee’s working hours? The short answer is yes, in many cases. But there are rules to follow, and the change must be fair and clear. This article is based on the Employment Act 1955 (Act 265).

1. Who does the Act cover?

The working hours rules in Part XII of the Act apply to most employees who earn RM4,000 a month or less. They also apply to employees who do manual work, no matter how much they earn. If your employee earns more than RM4,000 and does not do manual work, the contract of service is the main guide. Even so, many companies follow the same limits because they are fair and sensible.

2. What are the limits on working hours?

Section 60A of the Act sets the basic limits. An employee should not be required to work:

• More than five hours in a row without a break of at least 30 minutes.
• More than eight hours in one day.
• More than 10 hours from the time work starts to the time work ends in a day, including breaks. This is called the “spread over” period.
• More than 45 hours in one week.

There is also a rule that the normal hours of work are the hours agreed in the contract of service, and these hours cannot go above the limits above. So when you plan a new schedule, check your contract first.

There is some room to adjust. If the contract says an employee works fewer than eight hours on some days, the other days can be a little longer. But it must not be more than nine hours in one day or 45 hours in one week.

3. What about shift work?

Shift work has its own rules in section 60C. An employee on shifts can be asked to work more than eight hours a day or 45 hours a week. But the average over any three weeks must not go above 45 hours a week. The Director General of Labour can approve a longer period if there is a special reason.

In normal times, no employer can require an employee to work more than 12 hours in one day. For shift workers, a rest day means at least 30 hours in a row. Every employee must also get one full rest day each week.

4. What about overtime?

If an employee works more than the normal hours agreed in the contract, the extra time is overtime. The Act says overtime must be paid at no less than one and a half times the hourly rate of pay. So if you extend working hours, think about whether you will need to pay overtime.

5. What should employers think about before making a change?

Before you change working hours or shift times, ask yourself these simple questions:

• What does the contract say? The normal hours are agreed in the contract. If the contract is silent or fixed, the best way is to talk to the employee and get their agreement in writing.
• Is the new schedule within the legal limits? Check the daily, weekly and break limits in section 60A or section 60C.
• Is there a good reason? A clear business reason, such as customer demand or a new machine, makes the change easier to accept.
• How will it affect employees? Think about travel time, childcare, school runs, prayer times and public transport. A small change for the company can be a big change for a family.
• Will the change cost more? Overtime pay and shift allowances may need to be planned.
• Is it fair to everyone? Avoid choosing one person for the worst shift without a good reason.

6. How to tell employees about the change

Good communication makes a big difference. Here is a simple way to do it:

1. Tell them early. Give enough time so people can adjust their daily lives. Do not announce a change tonight for tomorrow morning.
2. Explain why. People accept change more easily when they understand the reason.
3. Put it in writing. Share the new hours, the start date and how long the change will last. A short letter or email is enough.
4. Speak in simple words. Make sure everyone understands, whether they are young or old, or whether English is their first language or not.
5. Listen to concerns. Hold a short meeting or one-to-one chat. Some employees may have a real problem that you can solve with a small adjustment.
6. Review after a few weeks. Ask how it is going and fix any problems early.

7. What if an employee wants different hours?

The Act also allows employees to ask for a flexible working arrangement. Under section 60P, an employee can apply to change their hours of work, days of work or place of work. The employer must reply within 60 days. If the employer says no, the reply must be in writing and must state the reason. This is a good reminder that working hours can be discussed from both sides.

Final thoughts

Changing working hours is possible, but it works best when it is legal, fair and well explained. A clear contract, a good reason and honest communication will help you avoid many problems.

If you are not sure how to change working hours, update contracts or write a clear notice to your team, Kita Strategies is here to help. As an HR company, we work with Malaysian businesses on employment contracts, HR policies and everyday people matters, so you can make changes with confidence and keep your team happy.