The Trade Unions (Amendment) Act 2023 was passed by the Dewan Rakyat on 10th Oct 2023, the Dewan Negara on 28th Nov 2023, received the Royal Assent on 27th Dec 2023 and gazetted on 12th Jan 2024. It comes into operation on a date to be appointed by the Minister of Human Resources (MHR) by notification in the Gazette.

Once the TU (Amendment) Act 2023 comes into force, there are significant changes to the trade union recognition landscape, allowing multiplicity of unions in Peninsular Malaysia, Sabah or Sarawak catering for employees in Managerial, Executive, Confidential, Security or Non-Executive (bargainable) capacities. Post TUAA 2023, the definition of a “trade union” is amended to allow trade unions to be established across trade, occupation or industry giving rise to “multiplicity” of unions within an organisation. Post TUAA 2023, recognition claims are no longer governed by competence of the union, but rather, by the union’s scope of membership, and must be in accordance with the constitution of the trade union. Where such a union has majority support of employees in their respective capacity, the DG of IR shall decide that recognition be accorded to the union concerned – Sec. 9 (5) IRAA 2020.

Post TUAA 2023 and IRAA 2020, where there are more than one union in an organisation, the union having the majority of support for a category of workmen (or class of workmen) shall have “sole bargaining rights” under Sec. 12A IRAA 2020 to negotiate the CA. One other significant change post TUAA 2023 pertains to the lowered threshold requirement for a trade union to organise a strike. Firstly, the union must obtain at least 60% votes from members who are entitled to vote via secret ballot, and secondly, at least 50% plus one of the votes are in favour of the proposed strike. Currently, the requirements for a union to organise a strike is to obtain the consent via secret ballot of at least 2/3rds of the total number of members entitled to vote.