The Ministry of Labour and Vocational Training (“MLVT”) has recently introduced a series of regulatory updates aimed at enhancing clarity, consistency, and compliance in labour registration and reporting practices. These updates are particularly focused on aligning procedures with the MLVT’s digital platforms, including the Labour Centralized Management System (“LACMS”).

The key regulatory updates include:

• Declaration of Enterprise Opening and Closure – Enterprises are now required to formally notify the MLVT of their commencement or cessation of operations via the LACMS.  The scope of information that must be reported to the MLVT regarding changes to enterprise particulars has been expanded and must be submitted via the MLVT’s online platform.
• Enterprise Establishment Book – Employers must maintain a standardized enterprise establishment book, accessible through LACMS.
• Payroll Ledger – Enhanced requirements for payroll documentation and digital submission have been introduced to ensure transparency and traceability. Enterprises are now required to update their payroll records monthly through the LACMS platform.
• Management of Labour Contractors – New compliance obligations have been set for enterprises engaging third-party labour contractors.
• Overtime, Public Holiday Work, and Weekly Time Off – the MLVT has clarified the conditions under which employees may work overtime, on public holidays, or have their weekly rest days suspended. It emphasizes voluntary participation, operational

Website link for full updates: https://www.dfdl.com/insights/legal-and-tax-updates/new-developments-in-labour-registration-labour-contractor-management-and-overtime-regulations/

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situation

Vansok Khem, Partner