Workplace sexual harassment remains a significant challenge in Malaysia. It undermines employee dignity, disrupts productivity, and exposes employers to legal and reputational risks. Understanding the current legal landscape is crucial for HR professionals, employers, and employees alike.

1. Introduction & Definitions

What is sexual harassment in the workplace?

Under the Employment Act 1955 (EA 1955):
Sexual harassment is defined as “any unwanted conduct of a sexual nature, whether verbal, non-verbal, visual, gestural or physical, directed at a person which is offensive or humiliating or is a threat to his well-being, arising out of and in the course of his employment.”

• Under the Anti-Sexual Harassment Act 2022 (ASHA 2022):
  The definition is similar but broader, covering “unwanted sexual conduct (verbal, non-verbal, visual, gestural or physical) directed at a person which is reasonably offensive or humiliating or is a threat to their well-being,” and is not limited to employment.

Key features to note:

• Conduct must be unwanted.

• The nature must be sexual (interpreted broadly).

• The conduct is offensive or humiliating, or a threat to well-being.

• EA 1955 applies only in the employment context, while ASHA 2022 covers broader settings.

Why does this matter?

Sexual harassment is not just “banter” or “flirtation”, it includes gestures, comments, digital messages, social media harassment, and misconduct during workplace gatherings. Legally, employers have obligations to prevent, investigate, and respond to harassment.

Recent legal developments from 2023 to 2025 have significantly reshaped Malaysia’s legal framework on this issue.

2. Legal Framework in Malaysia (2025)

2.1 Employment Act 1955 (EA 1955) – Part XVA

• Sections 81A-81H govern sexual harassment.

• Employees can lodge complaints against colleagues or employers.

• Employers must promptly inquire into complaints.

• If an employer refuses to investigate, they must notify the complainant in writing within 30 days.

• Proven harassment may result in disciplinary action, including dismissal.

• The Director-General of Labour (DGL) can intervene if employers fail to act.

Recent amendments (effective 1 Jan 2023):

• Provisions apply to all employees, regardless of wage level.

• Employers must display notices raising awareness of sexual harassment. Failure can result in fines up to RM50,000.

2.2 Anti-Sexual Harassment Act 2022 (ASHA 2022)

• Gazetted in October 2022; key parts effective from March 2023.

• Establishes a Tribunal for Anti-Sexual Harassment (once fully operational).

• Covers sexual harassment beyond employment (schools, public transport, clubs, online).

• Compensation from the tribunal can reach RM250,000.

2.3 Criminal Amendments – Bullying/Harassment as Offence (2025)

• Amendments to the Penal Code and Criminal Procedure Code effective 11 July 2025.

• Workplace bullying, harassment (including sexual, emotional, cyber) now criminal offenses.

• Includes doxxing, online abuse, threatening or abusive conduct causing fear or distress.

2.4 Other Applicable Laws

• Penal Code sections on insulting modesty (Section 509) and assault with intent to outrage modesty (Section 354).

• Tort law recognizes claims for sexual harassment damages, as in Mohd Ridzwan Abdul Razak v. Asmah Hj Mohd Nor.

3. Obligations of Employers and Employees

3.1 Employers’ Obligations

• Investigate sexual harassment complaints.

• Notify complainants if investigation is refused (with reasons).

• Take disciplinary actions if harassment is proven.

• Display sexual harassment awareness notices.

• Treat harassment and bullying seriously; document cases.

• Failure to comply can result in significant fines.

3.2 Employees’ Rights and Responsibilities

• Right to lodge complaints under EA and ASHA.

• Can terminate contract without notice if employer fails to act.

• Can seek civil damages or tribunal claims.

• Must report harassment and cooperate with investigations.

• Should avoid retaliating against complainants.

3.3 HR and Management Responsibilities

• Develop or review anti-sexual harassment policies.

• Provide training and awareness programs.

• Ensure confidential complaint mechanisms.

• Protect complainants from victimization.

• Document investigations and outcomes.

• Liaise with legal counsel for serious cases.

4. Procedural Steps and Complaint Handling

4.1 Lodging and Investigating Complaints

• Complaints are lodged to the employer.

• Employer must conduct prompt, impartial inquiry.

• If declined, reasons must be given in writing within 30 days.

• If harassment is found, disciplinary actions follow.

• Failure to act allows referral to Director-General of Labour.

• ASHA tribunal available once fully operational for broader claims.

4.2 Enforcement and Sanctions

• Employers face fines up to RM50,000 for non-compliance.

• Serious harassment may trigger criminal charges.

• Victims may claim civil damages and tribunal compensation.

4.3 Investigation Considerations

• Standard of proof: “balance of probabilities.”

• Ensure confidentiality and fairness.

• Document all steps and outcomes.

• Consider criminal aspects (cyber harassment, doxxing).

• Prevent retaliation.

5. Key Trends & Emerging Issues in 2025

5.1 Broader Coverage

• ASHA applies beyond the workplace.

• Criminal sanctions expand liability for harassment.

5.2 Digital, Remote & Hybrid Environments

• Harassment via social media, video calls, messages is covered.

• Doxxing is explicitly criminalized.

5.3 Vulnerable Groups and Power Imbalances

• Fear of retaliation remains a barrier.

• Harassment is recognized as gender-neutral.

5.4 Employer Liability & Cultural Risks

• Employers face legal and reputational risks.

• Policies alone insufficient without leadership commitment.

6. Good Practices for HR and Organizations

• Implement clear, comprehensive anti-sexual harassment policies.

• Conduct regular training and awareness programs.

• Provide confidential, accessible reporting channels.

• Investigate promptly and fairly.

• Protect complainants and prevent retaliation.

• Monitor workplace culture, including online spaces.

• Seek legal advice in serious cases.

7. Challenges and Key Issues

• Under-reporting due to fear and stigma.

• Difficulties proving harassment.

• Legal gaps, especially outside formal employment.

• Managing harassment in digital/hybrid workspaces.

• Organizational inertia and weak leadership.

8. Practical Checklist for HR and Employees

For HR/Employers:

• Maintain updated policies and display notices.

• Train all staff regularly.

• Provide complaint channels and document thoroughly.

• Monitor workplace culture.

• Address digital harassment explicitly.

• Consult legal experts when needed.

For Employees:

• Know your rights and company procedures.

• Preserve evidence.

• Report harassment promptly.

• Seek support when needed.

• Avoid retaliation.

9. Conclusion

The year 2025 marks a pivotal shift in Malaysia’s approach to workplace sexual harassment. The evolving legal framework from the Employment Act to the Anti-Sexual Harassment Act and new criminal provisions raises the bar for employer accountability and employee protections.

Sexual harassment is no longer a hidden or tolerated issue but a serious legal and cultural challenge demanding proactive, robust responses. Employers who embrace this change protect their workforce, reduce risk, and foster healthier, more inclusive workplaces.

By staying informed and adopting best practices today, Malaysian organizations can lead the way toward safer, more respectful workplaces for all.