For employers in Malaysia, few internal processes instil fear like handling a sexual harassment complaint. Without a clearly documented procedure, employees are left without protection and the entire company itself risks legal non-compliance.
Our guide breaks down what Malaysian employers must include in their Anti-Sexual Harassment Policy and how to implement effective prevention and complaint mechanisms.
Legal obligations for employers
Section 81 of the Employment Act 1955 lays out employer obligations when handling sexual harassment.
Section 81B: Duty to investigate
Section 81B requires that when a sexual harassment complaint is received, irrespective of salary amount and position, employers must:
- investigate complaints of sexual harassment, or
- provide written reasons for refusing to investigate within 30 days of receiving the complaint
Employers cannot simply ignore complaints or handle them informally without documentation, and failure to investigate or provide written reasons is punishable by a fine of up to RM50,000.
Section 81H: Mandatory notice display
Section 81H requires employers to prominently display a notice at the workplace to raise awareness on sexual harassment.
Employers can:
- display the notice in visible locations (reception area, notice boards, pantry, common areas)
- use the official template provided by the Department of Labour (JTK)
- make accessible the notice to remote workers via company intranet or HR portal
Failure to display this notice may result in non-compliance with Employment Act requirements.
What about the Anti-Sexual Harassment Act 2022
In addition to obligations under the Employment Act 1955, the Anti-Sexual Harassment Act 2022 (ASHA), establishes an independent legal avenue for complainants of sexual harassment via the Anti-Sexual Harassment Tribunal.
As ASHA is meant for complainants, employers should understand that it:
- is employee-focused, providing them with a statutory tribunal to lodge complaints and pursue remedies
- does not replace or dilute an employer’s statutory duties under the Employment Act
Employers should also note that an internal investigation cannot be avoided or delayed because a complainant may bring, or has brought, the matter to the Tribunal.
Failing to investigate may still expose the company to non-compliance or potential constructive dismissal claims.
Main benefits
A properly structured Anti-Sexual Harassment Policy protects your business in three ways:
Legal compliance
Meets mandatory requirements under the Employment Act and reduces risk of penalties for failure to investigate or display required notices.
Protection for employees
Creates a safe environment where employees understand prohibited conduct, know how to report concerns, and trust that complaints will be handled fairly and confidentially.
Protection for the business
Demonstrates proactive measures to prevent harassment, provides documented procedures that support fair investigations, and protects company reputation by addressing issues properly.
Essential terms
Definition of sexual harassment
The policy should clearly define what constitutes sexual harassment in your workplace.
Under the Employment Act, sexual harassment includes any unwanted conduct of a sexual nature, whether verbal, non-verbal, visual, gestural or physical, directed at a person which is offensive, humiliating or intimidating.
The policy should provide examples:
- Physical: Unwanted touching, patting, hugging, kissing, or physical assault
- Verbal: Sexual jokes, comments about appearance, repeated requests for dates
- Non-verbal: Displaying sexually explicit images, sending suggestive messages, inappropriate gestures
- Visual: Sharing pornographic materials, inappropriate social media posts or comments
- Quid pro quo (something for something): Conditioning employment benefits (promotion, salary increase) on sexual favours
Scope and application
The policy should specify who is covered and where it applies.
The policy should state:
- applies to all employees regardless of position, gender, or employment status
- covers conduct during working hours and work-related events
- applies to physical workplace, remote work settings, and digital communications (email, WhatsApp, Teams, social media)
3. Complaint procedures
Clear, accessible complaint procedures are essential for employees to feel safe reporting concerns.
The policy should specify:
- Who to report to: Multiple reporting channels (direct manager, HR, designated officer)
- How to report: Written complaint form, email, verbal report, or anonymous hotline
- What information to provide: Description of incident, date/time/location, witnesses, any evidence (messages, emails, photos)
- Confidentiality protections: All complaints will be handled confidentially; information shared only on need-to-know basis
- Timeline: Employer will acknowledge complaint within [e.g., 3-5 working days] and commence investigation within [e.g., 7 days]
Investigation process
The policy should outline:
- Who investigates: HR department, internal or external investigator depending on severity and seniority of parties involved
- Investigation steps: Interview complainant, alleged harasser, and witnesses; review evidence; document findings
- Fairness principles: Both parties given opportunity to present their side
- Outcome notification: Both parties informed of investigation outcome and actions taken
Consequences and disciplinary action
The policy should state clearly what happens if harassment is substantiated.
The policy should set out:
- disciplinary action will be will be applied in proportion to the seriousness of conduct
- actions may include written warning, suspension, transfer, or demotion
- serious cases (physical assault, quid pro quo harassment) may result in immediate termination
- false or malicious complaints made in bad faith may also result in disciplinary action
Prevention and training
The policy should emphasise prevention through awareness and education.
The policy should state:
- employees will receive training on what constitutes sexual harassment and their rights/responsibilities
- managers and supervisors will receive additional training on handling complaints and investigation procedures
- regular refresher training will be conducted
Mandatory notice display
This is a critical compliance requirement many employers overlook, and should reference:
- a notice will be displayed prominently in the workplace (e.g., notice board, pantry, common areas)
- the notice contains information on complaint mechanisms and relevant authorities
Employee Handbook inclusion
While not mandatory, many of our clients have found practical benefit in Including their anti-sexual harassment notice as an Employee Handbook appendix on top of posting it at their offices and on their HR portal.
Get a tailored policy for your business
A clear Anti-Sexual Harassment Policy demonstrates commitment to maintaining a safe workplace. If you are looking to develop a new policy or update an existing one, let us draft clear anti-sexual harassment policies for you that meet legal requirements and integrate with your employment contracts and workplace policies.
