Is it legal for Malaysian employers to make vaccinations mandatory for employees?

The COVID-19 pandemic has brought up seemingly endless unique legal challenges for businesses and employers for the past 18 months, and counting. Beginning with lockdown and restrictions, remote working, paycuts, retrenchments and reorganisations, businesses in Malaysia and many other jurisdictions are now focusing on reopening, and hopefully moving into a post-pandemic future.

In recent weeks, we have been reading about the issue of mandating vaccines for employees. The legality of so-called “no jab no job” policies continues to be debated in major jurisdictions such as the UK, US, and Europe, where the reopening of the economy is at a more advanced stage than Malaysia, and where many companies have been implementing mandatory vaccination policies. Multinational companies with a Malaysian presence are now looking to roll out those policies in their Malaysian offices too. However, the law can be very different across jurisdictions, and employers will need to tread with caution and consider not just the legal but practical repercussions before making vaccinations mandatory for their employees.

In this article, I set out the legal position on this issue, and the key issues employers need to consider. I’ve also previously shared some of my views on this with The Malay Mail in their piece earlier this month — “Can Malaysian employers make Covid-19 vaccinations mandatory for their staff? Lawyers explain.”

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Case Update: Industrial Court finds retrenchment due to effects of COVID-19/MCO was unfair

In this Case Update series, I share summaries of recent Malaysian court decisions to explore the current approach taken by the courts when deciding on employment-related issues. You can find all the posts in the series by clicking here, including case updates on other legal areas by TheMalaysianLawyer co-founder Lee Shih.

The Industrial Court recently decided that the retrenchment of an employee, which the employer said was due to the challenges caused by the COVID-19 pandemic, was an unfair dismissal. This decision shows that, while the courts will uphold genuine retrenchments as an option available to employers to ensure the financial viability and survival of their businesses, employers cannot simply cite the pandemic as an excuse to retrench employees without proper justification.

The award in Joseph Lim Chien Shiuh v. DTTLT Sdn Bhd (Award No. 1052 of 2021) dated 19 May 2021 should serve as a cautionary tale for employers. I expect we will see many more employees successfully challenging terminations carried out in 2020 and 2021 by businesses claiming to have been affected by the various lockdowns or Movement Control Orders (MCOs) and related restrictions.

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Malaysia’s Covid-19 Act: Contractual Reliefs Extended to 31 December 2021

The COVID-19 Act’s contractual relief provisions have been further extended from 30 June 2021 to 31 December 2021 (see PU(A) 287/2021). The COVID-19 Act’s full name is the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020. As explained below, we may see very little practical application of the contractual relief provisions. Continue reading

Malaysia Chapter: INSOL-World Bank Group Global Guide Covid-19

The INSOL-World Bank Group has updated its Global Guide on measures adopted to support distressed businesses through the Covid-19 crisis. The publication is now updated to the changes as at April 2021. I had earlier posted up the earlier edition of the guide as at April 2020.

The Global Guide covers 80 countries, and how each country had tackled the Covid-19 crisis through governmental, regulatory and legal relief measures.

Nathalie Ker and I contributed the Malaysia chapter for the INSOL-World Bank Global Guide.

In comparison with global trends, Malaysia has not been quick enough to update laws to provide the full range of reliefs for distressed businesses.

 

Malaysia’s COVID-19 Act: Contractual Reliefs Extended to 30 June 2021

Malaysia’s Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19)  Act 2020 (the COVID-19 Act) (I have written more about the COVID-19 Act here) will see an extension of its key relief on the inability to perform contractual obligations. The relief has been extended to 30 June 2021.
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Malaysia’s COVID-19 Act: Contractual Reliefs Extended to 31 March 2021

Malaysia’s Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19)  Act 2020 (the COVID-19 Act) (I have written more about this here) will see an extension of its key relief on the inability to perform contractual obligations in terms of time period as well as two additional types of contracts.

Under the original COVID-19 Act, Part II provided for relief against the inability to perform contractual obligations for the seven types of contracts listed in its Schedule. Continue reading