Post-MCO working from home has now become common across many Malaysian workplaces. But does an employee have a legal right to insist on working remotely?
Under Malaysian employment law, the short answer is no.
Under the Employment Act 1955, an employee may apply for a flexible working arrangement. However, the right is a right to request, not an automatic entitlement to have the request approved.
What Is a Flexible Working Arrangement?
A flexible working arrangement changes one or more aspects of an employee’s existing working arrangement.
Under section 60P of the Employment Act 1955, an employee may apply to vary:
- the hours of work;
- the days of work; or
- the place of work.
This may include flexible starting and finishing times, different working days, hybrid work or working from home.
Where a collective agreement applies, the application must be consistent with its terms.
Do Employees Have a Right to Work From Home in Malaysia?
Employees have a statutory right to apply to work from home, but they do not have a general right to demand it.
The Employment Act requires an employer to consider and respond to an application, but it does not compel the employer to approve it.
Whether working from home is permitted may also depend on:
- the employment contract;
- an existing flexible-working or remote-working policy;
- any collective agreement;
- the employee’s role and responsibilities; and
- any arrangement previously approved by the employer.
If the contract requires the employee to work from a particular workplace, the employee cannot ordinarily change that arrangement unilaterally.
How Does an Employee Apply for Flexible Working?
Section 60Q requires the application to be made in writing and in the form and manner determined by the Director General of Labour.
A practical application should state:
- the change requested;
- whether it concerns working hours, days or location;
- the proposed commencement date;
- whether the arrangement is temporary or permanent;
- how the employee will continue performing their duties;
- how communication and availability will be managed; and
- any practical steps that may address the employer’s concerns.
A clear proposal gives the employer something concrete to assess. Simply stating “I wish to work from home” may leave important questions unanswered.
How Long Does the Employer Have to Respond?
The employer must approve or refuse the application within 60 days after receiving it.
The decision must be communicated to the employee in writing. If the application is refused, the employer must also state the reason for refusing it.
The employer should therefore record:
- when the application was received;
- the operational factors considered;
- any discussion held with the employee;
- whether an alternative arrangement was considered; and
- the reasons for the final decision.
Can an Employer Reject a Work-From-Home Request?
Yes.
The Employment Act does not prescribe an exhaustive list of reasons that justify refusal. An employer may consider its genuine business and operational requirements.
Relevant considerations may include:
- whether the employee must be physically present to perform the role;
- customer or operational requirements;
- supervision and performance concerns;
- access to equipment or documents;
- workplace safety;
- data security and confidentiality;
- the effect on other employees;
- additional costs; and
- whether the proposed arrangement would affect productivity or service quality.
The reason should be genuine and connected to the employee’s role or the employer’s operations. A vague response that the company “does not practise working from home” may invite questions about whether the application was properly considered.
The Department of Labour’s flexible working arrangements guidance also indicates that, although employers retain discretion to approve or refuse applications, employees may complain where discrimination affects the decision.
Must the Employer Offer an Alternative Arrangement?
The Employment Act does not expressly require an employer to propose an alternative.
However, doing so may be commercially sensible. If full-time remote work is unsuitable, the parties could consider:
- a hybrid arrangement;
- adjusted starting and finishing times;
- different working days;
- a temporary trial period; or
- working from home only in defined circumstances.
A workable compromise may help the employer retain an employee without compromising operational needs.
Can an Employee Work From Home While Waiting for Approval?
Generally, no.
Submitting an application does not itself change the employee’s existing contractual duties. Until approval is given, the employee should continue following the existing working arrangement.
An employee who stays home without permission may be regarded as absent from the workplace or as having disobeyed a lawful instruction. Depending on the facts, this may result in disciplinary action even if the employee claims to have performed some work remotely.
Employees should obtain written approval before changing their place or hours of work.
Can an Employer Require Employees to Return to the Office?
Generally, an employer may require an employee to return to the contractual workplace where remote work was temporary or discretionary.
The position may be different where:
- remote work is an express contractual term;
- the employer agreed that the arrangement would be permanent;
- the employer’s policy limits when the arrangement may be withdrawn; or
- the direction exposes the employee to an imminent workplace danger protected under safety legislation.
The employer should review the contract, approval letter and applicable policy before withdrawing an established arrangement.
Why Should the Arrangement Be Recorded in Writing?
Informal arrangements can create disputes about whether working from home was actually approved.
In Foo Lan Fang v Huntsman P & A Asia Sdn Bhd [2019] ILJU 212, the employee claimed that she had been allowed to work from home while recovering from an injury. The employer treated the period as unpaid leave and deducted 18.5 days from her salary. The Industrial Court found that there was no evidence of an approved work-from-home arrangement and that the employee had performed very little work during the period.
The case illustrates why both parties should document:
- the approved work location;
- the duration of the arrangement;
- working hours and availability;
- expected output;
- reporting requirements; and
- the circumstances in which the arrangement may be reviewed or withdrawn.
What Should a Flexible-Working Policy Cover?
A written policy can reduce uncertainty and ensure applications are handled consistently.
It should address:
- eligibility and the application process;
- who decides applications;
- assessment criteria;
- response timelines;
- trial and review periods;
- attendance and availability;
- performance expectations;
- use of company equipment;
- confidentiality and cybersecurity;
- health and safety reporting;
- expenses and internet costs;
- treatment of confidential documents;
- monitoring and privacy; and
- how an approved arrangement may be varied or withdrawn.
An approved flexible arrangement should not be used to reduce statutory benefits such as rest days, public holidays, annual leave, sick leave or overtime entitlements where those protections apply.
How Should Performance Be Managed Remotely?
The legal requirements for addressing misconduct or poor performance do not disappear merely because an employee works remotely.
However, employers may need to adjust how performance is measured. Physical presence or time spent online may not accurately reflect productivity.
Employers should set clear and measurable expectations concerning:
- output and deadlines;
- availability during agreed hours;
- attendance at online meetings;
- response times;
- reporting obligations; and
- communication with colleagues and customers.
Any concerns should be raised promptly and supported by objective evidence.
What About Confidentiality and Data Security?
Remote working increases the risk that confidential information may be accessed through unsecured networks, personal devices or other persons in the employee’s home.
Employers should consider:
- secure access through a VPN;
- updated security and antivirus software;
- restrictions on using personal devices;
- rules for printing or storing confidential documents;
- procedures for reporting lost devices or data breaches; and
- returning or deleting company information when employment ends.
Employees remain bound by their confidentiality obligations while working outside the office.
Does Workplace Safety Law Apply at Home?
An employee’s home may become a place where work is carried out. Employers should therefore consider the safety and health risks of remote work so far as those matters are within their control and it is practicable to address them.
Practical steps may include:
- assessing whether the role can be performed safely from home;
- providing suitable equipment where appropriate;
- giving ergonomic and safety guidance;
- creating a process for reporting accidents or injuries; and
- recording the approved work location and working hours.
The scope of responsibility will depend on the particular arrangement and the degree of control the employer has over the remote workplace.
Practical Checklist for Employees
Before applying, an employee should:
- review the employment contract and company policy;
- make the request in writing;
- explain precisely what arrangement is requested;
- address how duties and communication will be managed;
- keep a copy of the application and response; and
- continue following the existing arrangement until approval is obtained.
Practical Checklist for Employers
When receiving an application, an employer should:
- record the date it was received;
- assess the request on its individual facts;
- consider operational and legal implications;
- avoid discriminatory or inconsistent decision-making;
- respond in writing within 60 days;
- give written reasons if refusing the request; and
- document the terms of any approved arrangement.
Final Thoughts
Flexible working arrangements can benefit both employers and employees, but the arrangement must be clear.
Malaysian employees have the right to request changes to their working hours, days or place of work. They do not have an automatic right to insist on working from home.
Employers retain the discretion to approve or refuse a request, but they must respond within the statutory period and provide written reasons for any refusal. A considered decision, supported by proper documentation, is the best way to prevent future disputes.
Continue Learning About Malaysian Employment Law
If you need help preparing a flexible-working policy, responding to an employee’s request or understanding your rights and obligations under Malaysian employment law, feel free to get in touch. You can also explore Employment Law Malaysia: The Complete Guide for Employees and Employers (2026) for practical articles covering employment contracts, workplace rights, performance management and dismissal.
This article provides general information and does not constitute legal advice. The legal position may depend on the employee’s contract, workplace policies, collective agreements and the particular facts.
