“It's just office politics.” “Toughen up.”

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These are phrases many employees have heard in response to bullying or harassment in the workplace.

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But as of July 2025, such conduct could no longer be dismissed as an “HR issue.” With the passing of Act A1750, the Malaysian Penal Code now includes specific criminal offences targeting bullying, harassment, threats, and doxxing (Sections 507B to 507G). These provisions have significant implications for employers, not just as potential facilitators of toxic environments, but as duty-bearers of workplace safety.

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This article breaks down what every employer and Human Resource practitioner needs to understand about the new amendments and their intersection with employment law.

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The Legal Shift: From HR Misconduct to Criminal Liability

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Traditionally, workplace harassment and bullying were addressed within the scope of internal HR policies, or at most, under the Employment Act or tort law (e.g. negligence, assault). Now, certain forms of conduct may cross into criminal territory, particularly where threats, psychological abuse, or exposure of personal information are involved.

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The following types of conduct may now amount to a criminal offence, depending on the context, intention, and impact on the victim:

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(a) Threatening, abusive or insulting language or behaviour, including verbal abuse, intimidation, or hostile outbursts (s.507B)

(b) Harassing or intimidating someone (s.507C)

(c) Sustained psychological provocation, including repeated taunting or deliberate emotional pressure that causes distress or fear (s.507D)

(d) Publishing or misusing someone’s personal or identity information with intent to cause harm, alarm or distress, including doxxing (s.507E–507F)

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These provisions apply regardless of where or how the conduct occurs i.e. whether in the office, on the factory floor, during virtual meetings, or online.

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Penalties vary: up to 3 years (e.g., s.507B, s.507E), up to 1 year (e.g., s.507C, s.507D(1)), and up to 10 years where suicide is attempted or committed as a result of provocation under s.507D(2), plus fines where provided.

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What This Means for Employers

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While the offence is directed at individuals, employers are not insulated from liability. If bullying takes place under their watch, and no meaningful steps are taken to investigate or intervene, companies may face:

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(a) Constructive dismissal claims

(b) Civil lawsuits for psychiatric injury or harassment

(c) Reputational damage and public backlash

(d) Potential regulatory action or inquiries

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Inaction may be interpreted as complicity, especially where prior complaints were ignored or mishandled.

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Practical Steps for Employers

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Employers should not wait for an incident to occur before responding to the law. The risks to legal and operation are too high.

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To align with the new provisions, organisations should immediately:

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(a) Review and update internal policies to explicitly include psychological bullying and emotional harassment;

(b) Train managers and team leads to identify early signs of toxic conduct and to respond appropriately;

(c) Implement and publicise reporting channels that are accessible, confidential, and safe;

(d) Document all complaints and responses to demonstrate accountability and transparency.

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A Turning Point in Workplace Culture

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This development is more than a legal amendment, it marks a cultural shift. The new provision reflects a growing awareness that psychological harm can be just as damaging as physical violence.

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Behaviours that may once have been tolerated as “firm leadership” or “part of the job”, public reprimands, exclusion from meetings, passive-aggressive treatment, must now be reconsidered through the lens of criminal liability.

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The focus is no longer on whether someone can get away with bad behaviour, but on whether the workplace culture supports mental safety, dignity, and respect.

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Key Takeaways

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(a) The new provisions expand criminal liability to a wider range of conduct, including verbal abuse, online threats, identity misuse (doxxing) and psychological provocation, even whre there is no physical harm.

(b) Employers may face civil liability if they fail to act on reports or create a toxic work culture.

(c) Strong internal policies, clear reporting procedures, and regular training are now essential.

(d) This is a legal and cultural shift; from tolerance of toxic behaviour to a focus on psychological safety.

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For more information or legal advice on how your organisation can comply with the new law, please contact our Employment & Industrial Relations Partner, Patricia Jayne Noeb at patricia.noeb@ikclaw.com

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Together, let us create a workplace where legal obligations are met and people feel secure showing up.