Work from home and SME digitalisation in Malaysia: Legal challenges

Abstract

Purpose: This paper aims to analyse challenges in implementing work from home for SMEs in Malaysia in the legal viewpoint. Apart from discussing relevant provisions, several court cases are also examined to identify the problems which arise in the implementation of work from home. Design/methodology/approach: This paper mainly relies on primary sources of information in form of statutes and court cases. The analysis conducted in this research is supported by secondary data. Additionally, this paper also uses an analytical descriptive approach to analyse relevant provisions from statutes and to examine current court cases regarding the implementation of work from home in SME. Findings: It is submitted that the current Malaysian legal framework on employment and safety and health at workplace is silent on the status for worker under work from home arrangement. Therefore, similar obligations and rules under the Employment Act 1955 and Occupational Safety and Occupational Safety and Health (Safety and Health Committee) Regulations 1996 is applicable to worker under work from home arrangement. Research limitations: The employer’s view must be taken into consideration into future studies. Future research should examine the employer’s perception in dealing legal issues arises in WFH arrangement. Practical implications: The study suggests that SMEs need to review their working policy with regards to WFH arrangement and ensure it is adhering to the provisions under the EA 1955. Therefore, understanding the legal issues arising in the work from home arrangement will help employer to review their company policy when dealing with workers under work from home. Originality/value: This paper provides an analysis of the legal issues arising in the work from home arrangement in particular for Malaysian SME. It is hoped that the content of this paper can provide some insight into this particular area for digitalisation regulatory framework not only in Malaysia but also elsewhere. Paper type: Conceptual paper.