Malaysian Government implements Work From Home Arrangements: Key Considerations for Employers’ WFH Policies

On 2 April 2026, Prime Minister Dato’ Seri Anwar Ibrahim announced that work-from-home (“WFH”) arrangements for ministries, government agencies, statutory bodies and Government-Linked Companies will take effect from 15 April 2026.1 The measure forms part of the Government’s efforts to reduce fuel consumption and ensure the sustainability of national energy supply amid ongoing global energy pressures.
 
At this point in time, the Government has not made it mandatory for private sector employers to follow suit. 
 
While many organisations adopted WFH policies during the COVID-19 pandemic, these were driven by pandemic conditions, and the policies may no longer serve their purpose given the developments in law.
 
This alert highlights key considerations that employers should address when reviewing their WFH frameworks.
 
Occupational safety and health legislation perspective
 
Employers should be aware that their obligations under the Occupational Safety and Health Act 1994 (“OSHA 1994”) to ensure, so far as is practicable, the safety, health and welfare of their employees at the workplace2 extends to WFH arrangements as well.  As such, there is a necessity for employers to take measures to ensure the safety and health of their employees who are operating on a WFH arrangement.
 
In that sense, the Prime Minister’s announcement coincides with the issuance of the Occupational Safety and Health Guidelines for the Implementation of Flexible Working Arrangement 20263 (“FWA Guide”) by the Department of Occupational Safety and Health (DOSH), which provides a framework on how employers are expected to manage safety and health risks in flexible working arrangements. While not legally binding, the FWA Guide is an important indicator of how duties under the OSHA 1994 are to be discharged in a remote working environment.
 
In practical terms, employers should focus on identifying and addressing reasonably foreseeable risks, including both physical and psychosocial hazards. This includes implementing clear WFH policies, setting minimum safety expectations for home workspaces, and requiring employees to carry out self-assessments and provide confirmation of compliance. Providing guidance or training on safe workstation setup and general home safety may also be appropriate.
 
The FWA Guide places particular emphasis on ergonomics and psychosocial risk management. Employers may refer to the Guidelines on Ergonomics Risk Assessment at Workplace 20174 in addressing physical risks, and the Guidelines on Occupational Safety and Health for Psychosocial Risk Assessment and Management at the Workplace 20245 in managing risks such as stress, fatigue and blurred work-life boundaries. While not legally binding, these guidelines provide useful benchmarks for what may be considered reasonably practicable.
 
Employers should also ensure that appropriate reporting and documentation mechanisms are in place, including processes for reporting work-related incidents arising in a WFH setting, and periodic review of WFH arrangements.
 
Importantly, the ability of an employer to discharge its safety and health obligations remains a relevant consideration in determining whether a WFH arrangement is appropriate in a particular case.
 
Employment law perspective
 
Since the pandemic, significant employment law developments have reshaped the workplace landscape. Notably, discrimination has been expressly codified in statute6, alongside the introduction of employees’ right to request flexible working arrangements7.
 
Managing and monitoring employee performance and conduct in a remote working environment continues to present practical and legal challenges, and is now further complicated by heightened regulatory expectations. Employers should ensure that their performance management frameworks, reporting lines, and disciplinary procedures remain robust and adaptable to remote settings, while steering clear of risks.
 
It has also been some years since our privacy laws were introduced with additional guidance issued along the way which means that employers should re-assess if their monitoring tools and protocols remain compliant.
 
Employers should also exercise caution when terminating contractors. Recent expansions in worker protections, particularly in relation to gig economy participants, may extend beyond platform-based arrangements and capture certain categories of service providers. As such, businesses should carefully assess the nature of their contractual relationships before taking termination decisions, to mitigate the risk of misclassification claims and associated liabilities.
 
Concluding remarks
 
WFH arrangements are increasingly a feature of the workplace. The key issue for employers is to ensure that their approach is practical, proportionate, aligned with regulatory expectations, and supported by clear policies and documentation.
 
As it can be seen from the developments outlined above, the framework for WFH arrangements has evolved since the pandemic years. Employers considering re-introducing WFH arrangements should not simply dust-off the cover of their Covid-19 WFH playbook. Rather, prudence dictates that a wholesale review be undertaken to update the policy document.
 
Article by Tatvaruban Subramaniam (Partner) and Laarnia Rajandran (Senior Associate) of the Occupational Safety and Health Practice and Selvamalar Alagaratnam (Partner) and Sara Lau (Partner) of the Employment Practice of Skrine.
 
 
 

1 PM: No longer business as usual; Star Online; 2 April 2026.
2 Section 15 of the OSHA 1994.
3 The guideline titled “Panduan Keselamatan dan Kesihatan Pekerjaan Bagi Pelaksanaan Aturan Kerja Fleksibel (Akf) 2026” can be found here: https://dosh.gov.my/wp-content/uploads/2026/01/JKKP-Buku-Panduan-Aturan-Kerja-Fleksibel_text-AKF_30JAN_v13-final.pdf.
6 Section 69F of the Employment Act 1955.
7 Section 60P of the Employment Act 1955.

This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.