Trade Unions (Amendment) Act 2024

At a glance

• The Trade Unions (Amendment) Act 2024 (Trade Unions Amendment Act) was gazetted on 12 January 2024.
• It is anticipated that the Trade Unions Amendment Act will come into force in the second half of 2024.
• The Human Resource Minister says the amendments are in line with the principle of freedom of association, ensuring the quality of the protection of workers’ rights in Malaysia by taking into account the principles outlined under international labour standards.
• Several trade unions and industry groups have expressed their disapproval of the amendments.

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We would like to express gratitude to Peter Ling and Van Geyzel for their contribution on this publication.

The Trade Unions Amendment Act was gazetted on 12 January 2024, but no implementation date has been fixed. The Trade Unions Amendment Act amends the Trade Unions Act 1959, effectively abolishing existing restrictions on the formation of trade unions. It is anticipated that the Trade Unions Amendment Act will come into force in the second half of 2024.

Currently, the formation of trade unions is restricted to being based on a specific employer or establishment, or a similarity in trade, occupation, or industry. The Trade Unions Amendment Act will allow greater diversity, and the ability to form multiple trade unions within establishments, trades, occupations, or industries. The Human Resource Minister says the amendments are in line with the principle of freedom of association, ensuring the quality of the protection of workers’ rights in Malaysia by taking into account the principles outlined under international labour standards.

Several trade unions and industry groups have expressed their disapproval of the amendments, warning that multiplicity of unions creates the danger of inter-union rivalry and irresponsible trade unionism, which would harm the solidarity of unions and weaken their bargaining power.