Flexible Working Arrangements: What Section 60P Requires of Employers

Under sections 60P and 60Q of the Employment Act 1955, any employee may apply in writing to vary their hours, days or place of work, and the employer must approve or refuse the application in writing within 60 days, stating grounds for any refusal.

What counts as a flexible working arrangement application?

The 2022 amendments introduced a statutory right for employees to request — though not to demand — flexible working arrangements (FWA). An application may seek variation of working hours, working days, or place of work, and must be made in writing and in the form the employer requires.

The right applies to all employees covered by the EA, which since 2023 means virtually all employees in Peninsular Malaysia and Labuan.

What must the employer do on receiving an application?

Section 60Q requires the employer to decide within 60 days of receiving the application and to inform the employee in writing whether it is approved or refused. If refused, the employer must state the grounds of refusal.

The Act does not prescribe or limit acceptable grounds, so operational needs, customer-facing requirements, supervision difficulties and cost are all legitimate considerations — provided they are genuine and articulated. Failing to respond within 60 days is the compliance breach to avoid, as it constitutes an offence under the Act.

How should employers manage FWA risk in practice?

A short written FWA policy serves both compliance and consistency. It should prescribe the application form, designate the decision-maker, set out the factors considered, and create a review or trial-period mechanism so that approvals are not treated as permanent contractual variations by conduct.

Inconsistent treatment is the real litigation risk: approving FWA for one employee and refusing a materially identical application from another invites discrimination complaints to the Director General under section 69F and feeds constructive dismissal narratives. Decisions and their grounds should be documented and applied evenhandedly.

Key Takeaways for Employers

• Employees have a statutory right to apply for FWA covering hours, days or place of work.
• Employers must respond in writing within 60 days; refusals must state grounds.
• The Act does not restrict the grounds of refusal — but they must be genuine and documented.
• Adopt a written FWA policy with a prescribed form, trial periods and review clauses.
• Apply the policy consistently to avoid discrimination complaints and constructive dismissal arguments.

Frequently Asked Questions

Can an employer refuse a flexible working request?

Yes. The employee’s right is to apply, not to be granted FWA. The employer may refuse but must do so in writing within 60 days and state the grounds.

Does approving FWA permanently change the employment contract?

It can, if granted unconditionally and acted upon. Employers should grant FWA on documented terms, ideally with trial periods and an express right of review or revocation.

What happens if the employer does not reply within 60 days?

Failure to comply with section 60Q is an offence under the Employment Act and exposes the employer to a fine. It also weakens the employer’s position in any related dispute.