Sexual harassment is never an easy topic for employers.It is uncomfortable. It is sensitive. It usually involves people who know each other, work together, report to each other, or sometimes even rely on each other for overtime, appraisal, promotion or job security.

Recent reports stated that Malaysia recorded 388 sexual harassment cases in the first five months of 2026 (Source: The Star). The numbers may sound like national statistics, but for employers, the message is much closer to home: employees are more aware, reporting channels are more visible, and workplace complaints are no longer guaranteed to remain inside the company.

In the past, some employers would try to manage these issues quietly. Call both parties into a room. Ask them to “settle nicely”. Transfer one person. Issue a reminder. Tell the complainant not to “overthink”. Tell the accused not to “joke too much”.

That approach is no longer good enough.

Today, sexual harassment is not only an internal HR matter. It can become an Employment Act issue, a Tribunal matter under the Anti-Sexual Harassment Act 2022, a police matter depending on the facts (criminal offence), and in some cases, an Industrial Court issue if the handling leads to dismissal, resignation or retaliation.

Sexual Harassment Is Not Only Physical Touching

One of the biggest misunderstandings in the workplace is that sexual harassment only happens when there is physical contact.

That is wrong. Sexual harassment can happen through words, messages, gestures, body language, images, repeated comments, unwanted attention, or conduct that makes someone feel offended, humiliated or unsafe.

In real workplace terms, it may look like this:

• A supervisor repeatedly calls a subordinate “sayang” or “baby” even after she looks uncomfortable.

• A manager comments on an employee’s body or dressing during work.

• A colleague sends late-night WhatsApp messages that slowly become personal or suggestive.

• A superior links overtime, roster preference or favourable treatment to personal attention.

• A senior employee makes sexual jokes in a team chat and says, “Relax, we are all adults here.”

• An employee touches another person’s shoulder, waist, back or hand and later says, “I was just being friendly.”

These are not always dramatic incidents. Many cases start small.What may look “minor” to one person may feel intimidating to another, especially where there is a power imbalance.

This is where HR must be mature enough to understand workplace reality. Not every smile means consent. Not every reply means comfort. Not every friendly exchange means the conduct was welcome.

Sometimes employees comply because they do not want trouble. Sometimes they keep quiet because the other person controls overtime, appraisal, shift placement or confirmation. Sometimes they laugh along because they do not know how to get out of the situation. That is why HR should not judge a complaint only from the surface.

The Employment Act Requires Employers to Act

Under the Employment Act 1955, employers have a duty to inquire into complaints of sexual harassment. This means once a complaint comes in, the company cannot simply file it away, dismiss it as gossip, or ask the complainant to “think carefully before making things bigger”.

The employer must assess the complaint and decide whether an inquiry is required. If the employer refuses to inquire, the refusal must be communicated with reasons. Even then, refusal should be treated carefully. Employers should not simply label a complaint as “frivolous”, “personal” or “not serious” without proper basis.

If the complainant is dissatisfied with the employer’s refusal, the matter may be referred to the Director General of Labour. The Director General may then direct the employer to conduct an inquiry. In simple terms, the company does not have unlimited freedom to ignore a complaint.

The law expects a process. The process does not need to be fancy, but it must be fair, prompt and properly recorded.

The Anti-Sexual Harassment Act 2022 Changes the Game

The Anti-Sexual Harassment Act 2022 is important because it gives complainants another external avenue through the Tribunal for Anti-Sexual Harassment.

This is where employers need to pay attention. If an employee feels that the company has not handled the complaint properly, the issue may not end with HR. The employee may pursue external action, including a complaint to the Tribunal, subject to the requirements under the Act.

The Tribunal may hear complaints of sexual harassment and make orders such as an apology, compensation or damages up to RM250,000, and attendance at programmes considered necessary by the Tribunal.

The practical point is this: once the matter leaves the workplace, the company loses control over the narrative.

In workplace sexual harassment cases, the standard is not “beyond reasonable doubt” like a criminal trial. The employer generally assesses the matter based on the “balance of probabilities”. But that does not mean HR can rely on feelings alone. There must still be a proper basis for the finding.

What Employers Should Not Do

There are a few mistakes employers should avoid.

• Do not ask the complainant to confront the alleged harasser alone.

• Do not force both parties to “shake hands and move on” where the complaint involves sexual conduct.

• Do not transfer the complainant in a way that feels like punishment.

• Do not allow the alleged harasser’s manager or close friend to control the investigation.

• Do not treat the complaint as a discipline problem against the complainant.

• Do not suddenly issue a show cause letter to the complainant shortly after the complaint unless the company can clearly show that it is genuinely unrelated.

That last point is important. If an employee complains about harassment and soon after receives a warning, transfer, poor appraisal, show cause letter or termination, the company must expect the timing to be questioned. Even if the company has valid reasons, the documentation must be strong enough to show that the action was not retaliation.

What HR Should Do When a Complaint Comes In

The first step is to acknowledge the complaint properly. HR should assure the complainant that the matter will be treated confidentially and fairly. HR should then assess whether immediate interim measures are needed. For example, should reporting lines be temporarily adjusted? Should the accused be instructed not to contact the complainant? Should they be separated during the investigation?

Interim measures must be handled carefully. The objective is protection, not punishment.

Then HR should investigate. Interview the complainant. Interview the accused. Speak to relevant witnesses. Review messages, emails, attendance records, CCTV, duty rosters, office chat logs or any other available evidence.

The accused must be given a fair opportunity to respond. Once the investigation is completed, HR should prepare a clear finding/report. If the complaint is proven, appropriate disciplinary action should be taken. Depending on the seriousness, this may range from warning to dismissal.

If the complaint is not proven, HR should still consider whether workplace intervention is needed. Sometimes the evidence may not be strong enough to establish misconduct, but the working relationship may still require boundaries, coaching, reminder or monitoring.

Closing Thought

Sexual harassment at work is no longer an issue employers can manage quietly in the background.

If the company does not respond properly, employees now have clearer external routes. They may go to the Labour Department. They may use the Tribunal under the Anti-Sexual Harassment Act 2022. Depending on the facts, the matter may also move into other legal channels. For employers, the message is simple.

Do not wait until the matter becomes public, legal or unmanageable. Make sure employees know where to report and make sure HR knows what to do when the report comes. In sexual harassment cases, the company is not judged only by what happened. It is also judged by what it did after it knew.