Raising the Bar on Workplace Safety: Malaysia's 2024 OSHA Amendments

Malaysia took a decisive step towards enhancing workplace safety and health in 2024 by introducing substantial amendments to the Occupational Safety and Health Act 1994 (OSHA). Effective from June 1, 2024, these changes signal a major transformation in the country's approach to occupational safety and health, broadening the law's scope and imposing stricter responsibilities on employers.

Expanded Scope

• All Workplaces Covered:

  Previously limited to specific industries, the OSHA now applies to virtually all workplaces across Malaysia, including public service and statutory authorities. This broader reach underscores the government's dedication to ensuring safety and health in every working environment.   

• New Obligations for employers, self-employed persons and/or Principals Mandated Risk Assessment: 

  Employers, self-employed individuals, and 'principals'—those who contract work to others— are now mandated to conduct risk assessments to evaluate potential safety and health hazards in their workplaces. This process, known as risk assessment, involves identifying workplace hazards and determining suitable control measures to mitigate risks. If the risk assessment reveals the need for risk control, these measures must be implemented to eliminate or minimize safety and health risks.

• Introduction of SHC: 

  If a workplace employs five or more individuals and does not require a Safety and Health Officer (SHO), the employer is obligated to designate an employee as a Safety and Health Coordinator (SHC). The SHC's responsibility is to manage occupational safety and health matters at the workplace, with a scope that is less comprehensive than that of an SHO.

• Workplace Emergencies: 

  Employers, self-employed individuals, and principals are now required to establish and implement procedures for handling emergencies that could occur in the workplace.

Enhanced Employee Protection

• Employee's Right to Refuse Unsafe Work:

Employees now have the right to remove themselves from situations they believe pose an immediate threat of serious harm or death, if their employer fails to address the issue after being informed. This "imminent danger" encompasses risks arising from various workplace hazards, such as equipment, materials, conditions, or procedures.

• Safeguarding Employee Rights: 

The updated OSHA explicitly prohibits employers from taking any discriminatory action against employees who exercise their rights under the law. This crucial provision provides additional protection for workers who raise safety concerns or refuse unsafe work, ensuring they can do so without fear of reprisal.

Stricter Enforcement

• Higher Penalties: 

The maximum fines for breaching safety and health duties have been raised significantly. Depending on the violation's severity, penalties now range from MYR 100,000 to MYR 500,000, with the possibility of up to 2 years imprisonment for non-compliance.

• Personal Liability for Directors and Officers: 

  The amended OSHA emphasizes individual accountability. In certain circumstances, directors and specific officers can now be held personally liable for offenses committed by the company, underlining the critical role of leadership in ensuring workplace safety and health.

More Key Changes

The amended OSHA now places a greater emphasis on the psychological well-being of employees, acknowledging its critical role in a safe and productive workplace. This focus on mental health reflects a growing understanding of its connection to overall safety. To support this, the Minister of Human Resources has been empowered to introduce regulations requiring employers to monitor not just physical aspects of the workplace, but also the psychological needs and overall health of their workforce.

The Road Ahead

Malaysia's 2024 OSHA updates demonstrate a clear commitment to enhancing workplace safety and health. By expanding its scope, empowering workers, and increasing penalties, the government emphasizes that safety is both legally and ethically crucial. Businesses must proactively adapt to these changes, ensuring their safety policies are current and comprehensive. Ultimately, these updates foster a safer, healthier, and more productive work environment for all.

Disclaimer: This article is intended for informational purposes only and should not be considered as legal or financial advice. Investors are encouraged to consult with relevant professionals for personalised guidance on compliance with Malaysian laws. The information in this article is considered correct and true as at the date of publication.