Mind at Work:
Mental Health in the Asia Pacific Workplace
MALAYSIA

Regulations and Policy Requirements
Is there a specific regulation in your jurisdiction that regulates mental health in workplace? Are employers required to have policies regarding mental health, i.e. to promote mental health awareness and protection?
Malaysia has no specific legislation requiring employers to maintain a standalone workplace mental health policy. However, under section 15 of the Occupational Safety and Health Act 1994 (OSHA), employers must, so far as practicable, ensure the safety, health and welfare of employees at work, while section 16 requires employers to formulate and communicate a written occupational safety and health policy. Further, section 18B requires employers to conduct risk assessments and implement appropriate risk controls. However, OSHA does not expressly require a separate workplace mental-health policy or awareness programme. The Persons with Disabilities Act 2008 and Mental Health Act 2001 also provide relevant protections, but do not impose a general requirement for employers to implement mental health awareness policies.
Leave Entitlements
Are employees with diagnosed mental health conditions entitled to paid or unpaid leave? If so, under what laws/policies and conditions?
An employee may be entitled to paid sick leave under Section 60F of the Employment Act 1955, provideded the condition is certified by a registered medical practitioner or medical officer. The Employment Act 1955 does not distinguish between physical and mental illnesses for this purpose. There is no separate statutory entitlement to paid or unpaid 'mental health leave.'
Employer Management of Suspected Conditions
May an employer require an employee with suspected mental health issues to leave the workplace or take time off? What level of evidence is required?
There are no statutory provisions giving employers a general power to require an employee to leave the workplace or take time off. However, under the general duties to ensure a safe working environment for employees, the employer may take such steps if it reasonanbly believes that the well being of the employee or other employees may be impacted.
Medical Examination / Fitness for Work
Can an employer require an employee suspected of having mental health issues to undergo a medical examination or seek medical attention? Are there limits or procedural safeguards?
There is no specific statutory provision requiring an employee suspected of mental health issues to seek psychiatric treatment.
However, an employer may request that the employee seek medical examination if it reasonably believes that the employee is suffering from mental health issues that has affected the employees ability to discharge his/her duties.
Medical Costs / Insurance
Are treatment costs for mental health conditions covered by statutory medical insurance or employer-provided benefits?
No, not as a general statutory entitlement. Mental health treatment costs are not generally covered by Malaysia’s statutory employment social security schemes unless the condition falls within the relevant scope of coverage, such as an employment injury or occupational disease under PERKESO (Malaysia's statutory social security scheme).
Occupational Disease / Work-related Illness
Can mental health conditions be classified as occupational illnesses and be covered under occupational injury insurance? What criteria must be met?
A mental health condition is not generally listed as an occupational disease in the Fifth Schedule to the Employees’ Social Security Act 1969 and therefore is not ordinarily covered under PERKESO’s Employment Injury Scheme. However, certain mental or behavioural disorders can fall within the Fifth Schedule where they result from specified occupational exposures. For example, the Fifth Schedule expressly covers mental behaviour disorders arising from exposure to boron, hallucinations, agitation and mental confusion from organic alkyl lead compounds, and mental and behaviour disorders from methyl n-butyl ketone exposure.
Disability Protections
Can employees obtain disability benefits or protections due to mental health conditions? Does the law recognize mental illness as a disability?
Yes. The Persons with Disabilities Act 2008 expressly recognises long-term mental impairments as disabilities. Accordingly, an employee with a qualifying mental health condition may be recognised as a person with a disability and benefit from protections including equal access to employment, equal opportunities, safe and healthy working conditions, protection from harassment and redress of grievances under section 29 of the Act. Section 2 of the Act provides: - “persons with disabilities” include those who have long term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society;
Termination
Can an employer terminate an employee with a mental health condition: (i) when the employee is unable to return to work; or (ii) for other business reasons unrelated to the condition? What legal risks (e.g., unfair dismissal, discrimination) arise?
Where an employee is unable to return to work due to a mental health condition, the employment contract may be frustrated where the incapacity is sufficiently serious or prolonged such that further performance is impossible or radically different from what was contemplated. In such circumstances, termination occurs by operation of law rather than by dismissal. If the employer terminates the employee without establishing frustration, the employee may challenge the termination under Section 20 of the Industrial Relations Act 1967 as a dismissal without just cause or excuse.
Confidentiality and Data Protection
What are the employer’s obligations regarding confidentiality, collection, use and storage of employee mental health information and medical records?
Yes. Mental health information is sensitive personal data under the Personal Data Protection Act 2010. Employers must therefore obtain the required explicit consent for its processing, use it only for legitimate purposes, keep it secure and confidential, and restrict disclosure to circumstances permitted by the Act.
Reasonable Accommodation
Is the employer required to provide reasonable accommodation to employees with mental health conditions? Examples: flexible hours, reduced workload, remote work
Malaysian law does not impose a general statutory duty on employers to provide reasonable accommodation specifically for employees with mental health conditions, such as flexible hours, reduced workload or remote work.
Anti-Discrimination
Are mental health conditions protected under anti-discrimination laws? What conduct constitutes discrimination?
Malaysia does not have a comprehensive anti-discrimination law that specifically prohibits discrimination based on mental health conditions. However, individuals with long-term mental impairments may fall within the definition of “persons with disabilities” under the Persons with Disabilities Act 2008. Section 29 protects such persons from unequal treatment in employment, including unequal opportunities, remuneration and working conditions. In the employment context, section 69F of the Employment Act 1955 prohibits discrimination in employment. Under secton 69F, an employee who alleges discrimination in employment may lodge a complant with the Director General of Labour, who has the authority to inquire into and issue orders where discrimination is established. Note however, the Employment Act 1955 does not define what constitutes discrimination.
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