THE pandemic resulted in what was termed the `lost years’, effectively, life came to a standstill for almost 2 years. Businesses closed completely or if allowed to continued, operated under strict conditions. Some decided to wind up their operations, some continued with cost cutting and retrenchment of employees, a natural step.

When the economy opened up, global supply chain issues put a damper on any attempts by businesses to ramp up their operations to the capacity they had been operating prior to the pandemic. 

Customers also put their orders on hold while reviewing the increased costs of goods.

It is a cyclical issue. Businesses who wish to ramp up their businesses are faced with the issue of hiring new employees. If these employers wish to hire and retain their employees, they have to offer better work terms.

But in the real business world, it is not as simple as offering better work terms. Consideration should also be given to the terms enjoyed by existing staff.

If the terms offered to new hires are above or better than the terms presently enjoyed by the existing hires, businesses will face upheavals and potential resignations from the existing hires. Just like the minimum wage imposed on employers. 

With the minimum pay, the gap between an employee’s pay and his immediate superior or supervisor would narrow from RM600 previously to only RM300.

The minimum wage has a cascading and spiralling effect. It is not just about raising the wage of those who are paid below the minimum wage. Wages at every level in a business will also have to be increased accordingly to ensure that the gap in the salaries between a junior and a senior staff who has more responsibility and higher work load remains prior to the implementation of the minimum wage.

Small and medium-sized enterprises (SMEs) will struggle with the flexible working arrangement (FWA) as the majority of their paperwork is still not digitised as well as the required internal rules and procedures for FWA. 

Concerns over confidentiality of information or possible security breaches can also limit the use of FWA for these SMEs.

Already, large companies are already having issues navigating the complex and evolving landscape responding to the “new normal” that is changing day by day. Many companies are relying on FWA for the first time. Some are thriving while others are struggling to adapt.

If large companies are struggling, needless to say the SMEs will fare worse. The responsibility for FWA is shared and requires the commitment of both employers and employees to make it
successful. Both sides should be practical, flexible and sensible to each other’s situation when implementing FWA.

For employers, they need to spend time to identify the job functions and tasks that can be done off-site. This may involve innovation and creativity to do things differently from the norm.

Employers need to assess mechanisms for connectivity such as regular videoconferencing calls and other means, assess the infrastructure, facilities and tools available for FWA such as Internet connectivity and the availability of reliable power supply.

They also need to assess the legal requirements, obligations and potential liability, taking into consideration the employee’s situation and the job functions, equipment and tools needed, employee’s situation in terms of safety and health in his/her domestic environment and actual ability to carry out the tasks required at home.

Employers also need to consider the potential impact of the employee’s living arrangements. For example, employees may have child or dependent care responsibilities, relationship strain or domestic violence, long-term health conditions or disabilities.

They would also need to assess any mental health concerns or possible future concerns that could arise through a FWA, an issue raised repeatedly by health experts and even the Ministry of Health throughout the pandemic.

While advances in ICT have enabled FWA, not all job functions and tasks can be done outside the employers’ premises or the specified workplace. There are companies, occupations and tasks where FWA is not practical or feasible, or it cannot be deployed in a short time frame.

For sure, with the implementation of the regulation on FWA, there will be downward pressure on rents and property prices as businesses will be vacating their existing premises for smaller units and cheaper rent, decrease in ridership on public transports that will see a drop in the earnings of the operators and decrease in consumption from F&B outlets.

Before the pandemic, discussions on the future of work life were unclear and often questioned. Covid-19 forced this issue upon people, and with the world having to adapt quickly, many businesses opted to try FWA.

Whether this work arrangement will remain as a transitory element responding to exceptional circumstances or if it could be a permanent arrangement still remains to be seen and is a big challenge. 

FWA should be implemented on a voluntary basis between employers and workers, accompanied by a signed agreement setting out terms and conditions. However, if the government is insistent on proceeding with the 1 September 2022 implementation date, they should consider:
1. Reexamining the possibility of remote working to become the new normal.
2. Review current labour legislation and ensure the labour insurance policies are extended to home
working.
3. To encourage small and medium enterprises to adopt FWA measures in addition to the tax incentives by providing subsidies and other incentives.
4. To further promote family-friendly employment practices.

One thing is for sure with this implementation, Tesla will never invest in this country as Elon Musk has stated that if the employees do not return to work at a physical site, they are deemed terminated by the company. – June 28, 2022.

FLK reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.