Sexual Harassment at Work: What Malaysian Employers Must Do

Malaysian employers must inquire into every sexual harassment complaint or record documented reasons for refusing within 30 days, must exhibit a notice raising awareness of sexual harassment at the workplace, and face fines and parallel proceedings before the Anti-Sexual Harassment Tribunal if they fail to act.

What does the Employment Act require?

Part XVA of the Employment Act (sections 81A–81G) obliges an employer who receives a sexual harassment complaint to inquire into it. The employer may refuse to inquire only on limited grounds — such as a previous inquiry into the same complaint or a frivolous complaint — and must inform the complainant in writing of the refusal and the reasons within 30 days.

Where harassment by an employee is proven on inquiry, the employer must take disciplinary action, which may include dismissal, downgrading or other lesser punishment. Since the 2022 amendments, all employers must also exhibit conspicuously at the workplace a notice raising awareness of sexual harassment. Failure to comply with these duties is an offence carrying fines up to RM50,000.

What changed with the Anti-Sexual Harassment Act 2022?

The Anti-Sexual Harassment Act 2022 created a standalone civil avenue: a Tribunal for Anti-Sexual Harassment empowered to hear complaints against perpetrators and award remedies including compensation and formal apologies. The Act operates alongside, not instead of, the Employment Act duties — meaning an incident can generate an internal inquiry, a Labour Department complaint, a Tribunal claim and an Industrial Court case simultaneously.

The definition of sexual harassment is broad: any unwanted conduct of a sexual nature, in any form (verbal, non-verbal, visual, gestural or physical), directed at a person, which is reasonably offensive or humiliating or a threat to their well-being.

How should employers reduce exposure?

The defensible framework comprises a written anti-harassment policy with clear reporting channels, trained recipients of complaints, a confidential inquiry procedure modelled on domestic inquiry standards, interim measures (such as separation of parties during inquiry), and proportionate disciplinary outcomes.

In dismissal litigation, the Industrial Court has consistently upheld dismissals for proven sexual harassment, treating it as serious misconduct destroying the employment relationship — but the proof must be established through a fair process. Conversely, employers who ignore complaints face both statutory penalties and constructive dismissal claims from victims who resign in despair.

Key Takeaways for Employers

• Inquire into every complaint or give written reasons for refusal within 30 days.
• Display the mandatory awareness notice conspicuously — its absence is an offence.
• Proven harassment justifies dismissal, but only through a fair inquiry process.
• The 2022 Act adds a Tribunal route against perpetrators alongside employment remedies.
• A written policy, trained complaint handlers and interim protective measures are the core controls.

Frequently Asked Questions

Must every sexual harassment complaint be investigated?

Yes, unless a narrow statutory exception applies, and any refusal must be communicated in writing with reasons within 30 days. Unjustified refusal is an offence.

Can an employee dismissed for sexual harassment claim unfair dismissal?

They can file a claim, but the Industrial Court routinely upholds dismissals where the harassment is proven through a fair inquiry, treating it as grave misconduct.

Does the law cover harassment by clients or third parties? The Employment Act inquiry framework focuses on workplace complaints involving employees and employers, while the Anti-Sexual Harassment Act 2022 allows Tribunal complaints against any perpetrator regardless of employment relationship.