[EMPLOYMENT] Special Alert: Flexible Working Arrangements: Modern Practices for Contemporary Establishments
The prevalence of Flexible Working Arrangements (FWA) has increased significantly on a global scale, particularly in the aftermath of COVID-19.
This alert examines the diverse implementations of FWA across various countries. In Malaysia, recent amendments to the Employment Act 1955 now allow for FWA applications. Consequently, there is a pressing need for comprehensive FWA policies to address potential challenges such as performance management, confidentiality, cybersecurity, and occupational safety – underscoring the importance of structured implementation to achieve a balance between productivity and work-life harmony.
If you have any queries, please contact Associate, Ashreyna Kaur Bhatia (akb@lh-ag.com), or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[ESG] Bursa Carbon Exchange to Host First Local Auction for Carbon Credits
Malaysian carbon credits are set to be up for auction this July by the Bursa Carbon Exchange. The carbon credits generated from the Kuamut rainforest project are hoped to generate greater interest among businesses to invest in carbon projects in Malaysia.
If you have any queries, please contact the author, Joyce Ong Kar Yee (oky@lh-ag.com).
[EMPLOYMENT] Special Alert: Turning the Tide: Malaysia’s Campaign Against Forced Labour in Foreign Worker Management
Despite being crucial to Malaysia’s industries, foreign workers encounter challenges such as forced labour, exploitation, and abuse, exemplified by recent incidents of unlawful deductions and other labour violations. These issues are rooted in factors like legal barriers, language disparities, and limited recourse, which not only tarnish Malaysia’s global image but also violate human rights.
In this alert, Partner Amardeep Singh Toor and Associate Jihan Azman address Malaysia’s conscious steps to combat issues associated with the management of foreign workers and to align itself with international labour standards.
If you have any queries, please contact Associate, Jihan Azman (jba@lh-ag.com), or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[TAX, CUSTOMS & TRADE] Takes Two to Tango: Harmonising Income Tax Act and Other Legislation
Taxing legislation does not exist in isolation and must be interpreted purposively and harmoniously with other relevant legislation. In the recent case of Amlife Insurance Berhad v Ketua Pengarah Hasil Dalam Negeri, the Court of Appeal unanimously held that the current year losses suffered by insurance companies in the shareholders’ fund should not be set off against the statutory income of the life insurance fund considering, amongst others, the insurance companies’ obligations under the Insurance Act 1996 (now repealed).
Amlife Insurance Berhad was successfully represented by Dato’ Nitin Nadkarni and Ivy Ling Yieng Ping from the Tax, Customs & Trade Practice Group of Lee Hishammuddin Allen & Gledhill.
If you have any queries, please contact Consultant, Dato’ Nitin Nadkarni (nn@lh-ag.com), Partner, Ivy Ling Yieng Ping (il@lhag.com) or Associate, Jay Fong Jia Sheng (fjs@lh-ag.com).
[EMPLOYMENT] Special Alert: Employer’s Right To Offer The Option To Resign
It is trite industrial relations jurisprudence that employers have the liberty to offer poor performing employees the option to resign as an alternative to being placed under a performance improvement plan. The Court of Appeal’s decision herein, reaffirms that employers and employees may well enter into a negotiation for a severance of the employment contract on mutually agreed terms. As the employee in this case had resigned on terms mutually agreed upon in the absence of any threat of termination, the Court of Appeal agreed with the High Court and Industrial Court decisions that the employee had resigned voluntarily because it was beneficial to him to do so.
If you have any queries, please contact Senior Associate, Arissa Ahrom (aa@lh-ag.com), or her team Partner, Shariffullah Majeed (sha@lh-ag.com).
[EMPLOYMENT] Special Alert: Exorbitant Claim of RM4.7 Million for Constructive Dismissal Struck Out by the High Court
A former employee filed a RM4.7 million constructive dismissal claim against 7-Eleven Malaysia Sdn Bhd, alleging that he was constructively dismissed after discussions on a proposed restructuring exercise. The High Court found in favour of 7-Eleven in allowing its application for the former employee’s claim to be struck out.
This alert outlines key takeaways from the High Court’s decision in Abdul Nasir bin Ahmad v 7-Eleven Malaysia Sdn Bhd [No.: WA-22NCvC-565-10/2022], emphasising the meagre damages to which aggrieved employees will be entitled to at the civil courts when pursuing a claim for constructive dismissal, and the need to seek recourse through the Industrial Relations Act 1967 instead of civil courts. 7-Eleven was represented by Partner Amardeep Singh Toor and Associate Ashreyna Kaur Bhatia of Lee Hishammuddin Allen & Gledhill.
If you have any queries, please contact Associate, Ashreyna Kaur Bhatia (akb@lh-ag.com), or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[ESG] Auction For Renewable Energy Certificates To Be Hosted By Bursa Carbon Exchange
The Bursa Carbon Exchange is set to host its inaugural auction of Renewable Energy Certificates sourced from the Murum Hydropower plant. The product offering aims to help buyers achieve sustainability goals while reducing carbon emissions.
If you have any queries, please contact the author, Joyce Ong Kar Yee (oky@lh-ag.com).
[TMT] Negligent Misrepresentation in IT Agreements: Action Points for IT Service Providers and Customers
Frequently, IT disputes arise where a service provider fails to fulfill certain promises or assurances made in the course of negotiations, which were not incorporated into the agreement. Enforcing these promises or assurances may not be straightforward. Similarly, it could also be tedious to defend against such claims.
In this alert, Partner Chan Mun Yew and Associate James Lau Jian Hui suggest practical and actionable steps for IT service providers and customers to safeguard their rights in this context.
If you have any queries, please contact Associate, James Lau Jian Hui (ljh@lh-ag.com) or his team Partner, Chan Mun Yew (myc@lh-ag.com).
[INTERNATIONAL ARBITRATION] Special Alert: Energy Exchange Malaysia (“ENEGEM”): Introducing Malaysia’s Newly Launched Energy Exchange
On 15 April 2024, the Ministry of Energy Transition and Water Transformation of Malaysia (“PETRA”) announced the establishment of Energy Exchange Malaysia (“ENEGEM”) as Malaysia’s first cross-border platform to facilitate the sales of renewable energy (“RE”) to neighbouring ASEAN countries. ENEGEM has in effect, ushered Malaysia into the cross-border energy market.
In this e-Alert, Partner Crystal Wong and Pupil Ruth Lim briefly introduce the mechanism of ENEGEM and discuss relevant considerations in relation to cross-border energy transactions.
If you have any queries, kindly contact Partner, Crystal Wong Wai Chin (wwc@lh-ag.com) or Pupil, Ruth Lim (jylim@lh-ag.com).
[ESG] Dewan Negara Passes The Environmental Quality (Amendment) Bill 2023
The Dewan Negara has passed the Environmental Quality (Amendment) Bill 2023, introducing significantly higher penalties for environmental offences. Businesses are advised to enhance compliance.
If you have any queries, please contact the author, Hoi Jack S’ng (hjs@lh-ag.com).