Last week, E2 Workforce Consulting proudly hosted our inaugural HR/IR Conference at Le Méridien Petaling Jaya. The event brought together HR leaders, IR practitioners, IR Lawyers, social media influencers, business leaders and industry professionals who share a common commitment: to build stronger, fairer and more future-ready workplaces. More than just a conference, it became a platform for practical conversations, fresh perspectives and real workplace insights. To our participants, members, speakers and partners — thank you! Your support, energy and engagement made the event not only successful, but truly memorable. It reminded us that in HR and Industrial Relations, continuous learning is not just important; it is what keeps our workplaces resilient, relevant and ready for what comes next.

From all of us at E2 Workforce Consulting, thank you once again for being part of this important first chapter. We look forward to welcoming you again at our next HR/IR Conference next year.

Malaysia HR/IR Watch

Public holiday planning: Wesak Day and Agong’s Birthday

JTKSM has clarified the treatment of Wesak Day on 31 May 2026 and the Yang di-Pertuan Agong’s Birthday on 1 June 2026. The Agong’s Birthday is one of the mandatory paid public holidays under the Employment Act 1955 for private-sector employees in Peninsular Malaysia and Labuan, and it cannot be substituted. Employees required to work on a public holiday must be paid in accordance with section 60D.

E2 practical tip:

HR should update the June roster early, confirm which holidays were selected at the start of the year, and ensure payroll is aligned with public holiday pay rules. Any substitution should be properly documented and agreed where required.

PERKESO’s new insurance program

The PERKESO’s LINDUNG 24 Jam scheme is expected to take effect from 1 June 2026, with contributions applying from June 2026 and payable by 15 July 2026. The contribution is mandatory and fully borne by employees, but employers are required to pay/remit the contribution on behalf of employees

The scheme is intended to provide protection for eligible employees who suffer non-employment accidental injuries, meaning accidents that happen outside working hours and are not directly connected to their job duties.

This is separate from the existing Employment Injury Scheme (EIS) , which continues to cover work-related accidents, commuting accidents, emergency accidents and occupational diseases. You may refer to the PERKESO FAQ for further scheme details.

Reference: https://www.perkeso.gov.my/images/borang/lindung24jam/SoalanLazimLindung24Jam.pdf?utm_source=chatgpt.com

E2 Practical Tip:

LINDUNG 24 Jam should not be read as replacing company PA insurance. It provides a statutory protection layer, while PA insurance may still serve as a useful top-up, depending on the company’s policy wording and benefit design. HR should update payroll readiness, prepare employee communication, and avoid describing the scheme as “full 24/7 cover for everything.”

Post-maternity leave support: watch this space, but prepare now

Following the Labour Day 2026 announcements, the Government has proposed a Post-Maternity Leave Allowance under the EIS framework, intended to support women employees for up to 30 additional days after the existing 98 days of maternity leave. Reports indicate that the proposed allowance may be structured as a one-off payment based on 80% of assumed monthly wages, with more than 132,000 women workers expected to benefit.

Reference: https://www.nst.com.my/news/nation/2026/05/1430111/updated-anwar-announces-post-maternity-leave-allowance-support-working#google_vignette

E2 practical tip:

Employers should not amend handbooks prematurely until implementation details are finalised. However, HR should start preparing internal workflows for return-to-work planning, extended leave requests, temporary replacement arrangements, payroll coding and communication to managers.

EPF for non-Malaysian employees: payroll compliance must be clean

KWSP has confirmed that from October 2025 wages, employers must ensure eligible non-Malaysian employees with valid work passes are registered and contributing to EPF, excluding domestic workers. The stated contribution rate is 2% employer and 2% employee, with contributions due by the 15th day of the following month.

Reference: https://www.kwsp.gov.my/en/employer/responsibilities/non-malaysian-citizen-employees

E2 practical tip: 

HR and payroll should audit foreign-worker master data, work-pass validity, employee categories, payroll settings and contribution calculations. This should not be treated as a “payroll-only” issue because non-compliance may later become an employment, audit and reputational risk.

Gig Workers Act 2025: contract models need review

Malaysia’s Gig Workers Act 2025 came into force on 31 March 2026, with the Government highlighting the creation of a Gig Workers Tribunal and a Gig Consultative Council. The law is expected to affect a significant segment of the gig workforce and introduces a more structured framework for disputes and minimum standards in the gig economy.

Reference: https://www.mohr.gov.my/pdf/2026/KSM.%20100-2-1-1%20JLD%205%20%2874%29.pdf

E2 practical tip: 

Businesses using gig workers, platform workers, delivery riders, freelancers or app-based service providers should review contract wording, payment formulas, dispute channels and termination mechanisms. The traditional “independent contractor” label may no longer be enough if the actual working arrangement shows control, dependency or structured obligations.

Closing Thought

In HR/IR, fairness is not just about intention. It is about proof.

A company may have acted fairly, but if the documents are weak, inconsistent or silent, the case becomes harder to defend. The better practice is to make every major employment decision traceable: what happened, what was considered, what was communicated, and why the final decision was made.

That is how HR moves from administration to risk management.