Amid global economic uncertainty and ongoing geopolitical tensions, particularly the volatility of global oil prices and the risk of energy supply disruptions, the Prime Minister of Malaysia has called for a comprehensive review of work-from-home (“WFH”) proposals to ensure administrative consistency. Against this backdrop, an important question arises as to whether Malaysian law recognises flexible working arrangements such as WFH?
Such arrangements are expressly recognised under the Employment Act 1955. Pursuant to section 60P(1), an employee may apply for a flexible working arrangement to vary the hours of work, days of work or place of work, subject to Part XII of the Act and the terms of the contract of service.[1] This encompasses arrangement such as WFH, whether on a fully remote or hybrid basis.
However, section 60P does not confer an automatic right to an employee to WFH. Under section 60Q, an application must be made in writing in the prescribed form to the employer, and the employer is then required to respond in writing within sixty (60) days, either approving or refusing the request. In the event of a refusal, reasons must be provided.[2] While the Act does not prescribe an exhaustive list of acceptable grounds for refusal, factors such as nature of the role, business continuity, and operational feasibility remain key considerations.
From a policy perspective, WFH arrangements present an attractive solution to reduce fuel consumption and ensure sustainability of energy supply. That said, WFH is not a one-size-fits-all solution. Its suitability varies across industries and job functions.
Notably, while the private sector in Malaysia has largely adapted to WFH practices since the pandemic, the public sector remains in a transitional phase. Following the announcement by the Prime Minister on 1.4.2026, a formal WFH directive will come into effect on 15.4.2026 across government ministries, agencies, statutory bodies, and government-linked companies (GLCs). However, critical sectors such as healthcare, education, and essential services will remain unaffected.[3]
In conclusion, while Malaysian law does provide a framework for flexible working arrangements, the adoption of WFH ultimately requires a careful balancing of employee flexibility with organisational efficiency and public service obligations. As the government continues its review, the challenge lies not in whether WFH should be implemented, but in how it can be effectively and sustainably integrated into the broader ecosystem.
[1] Section 60P, Employment Act 1955
[2] Section 60Q, Employment Act 1955
[3] Civil Servants Living Over 8km From Office Can WFH <https://www.thestar.com.my/news/nation/2026/04/03/civil-servants-living-over-8km-from-office-can-wfh>
About the Author
Goay Kah Kah, Nicolle is an Associate at XK Law with a strong passion in litigation. Her experience includes corporate and commercial disputes, as well as civil and commercial fraud cases. Nicolle thrives in dynamic environments and outside of work, she enjoys rock climbing and practicing yoga—both of which challenge her focus, discipline and resilience in different ways.
