Legal Update : Hidden Cost of Silence – Bullies in suit met Malaysia’s New Penal Code

Stressed woman with hands on ears surrounded by pointing fingers, illustrating pressure.

Introduction

On 11 July 2025, Malaysia enacted a series of landmark amendments to the Penal Code to criminalize various forms of bullying, including psychological, cyberbullying, linguistic and doxing, now codified under Sections 507B to 507G of the Penal Code[1].

In today’s modern workplace, bullying has unfortunately become a norm in many industries, cutting across job roles, seniority and gender. No one is immune. The passing of these Penal Code amendments marks a significant turning point for Malaysia, establishing a robust legal framework in dealing with workplace politics, misbehave and harassment that result in physical injury, psychological trauma, reputation damage or emotional distress.

These legal reforms ensure the nation keeps pace with evolving social challenges. More importantly, they empower the justice system to reshape workplace culture, fostering environments where both employees and employers enjoy greater legal protection and a clearer standard of accountability.


Revised Provision: Sections 507B to 507G

Regarding to the amendment of Penal Code (Act 574), inserting Sections 507B to 507G, the new provisions have been introduced as followed:[2]


The Penal Code (Amendment) Act 2025 introduces several new terms to strengthen enforcement against bullying offences under Section 507G for the purpose of such new amendments: –

  • “Harm”, refers harm to a person, whether physical or mental in nature.
  • “Identity information”, means any information that identifies or purports to identify a person.
  • “Related person”, refers to an individual whose safety or well-being would be reasonably be expected to be of concern of the first-mentioned person.

The Legal Affairs Division of the Prime Minister’s Department (BHEUU) confirmed that the Penal Code (Amendment) Act 2025, passed by Parliament in December 2024, officially took effect in July 2025[3].


Comparison with other countries

Workplace bullying is not unique to Malaysia — it is a widespread workplace “custom” that affects employees across the globe.

In the United States, workplace bullying has been reported at a rate four times higher than sexual harassment. Between 2022 and 2024, the Seoul, South Korea recorded a staggering 16,607 counseling cases related to workplace bullying[4].

In Denmark, there was an article which quoted the statement from Minister of Employment. It established that the workplace bullying had become a nationwide concern requiring systemic intervention[5]. This led to the development of a new legal framework that was integrated into existing labour laws to provide stronger protection for workers’ rights.

Countries such as Canada, Australia and nine European nations, including Sweden, France and Denmark, have implemented dedicated anti-bullying laws. According to the Federation of European Employers, in the first month of the new Serbian law became effective, it gave rise to over 400 of court applications filed against workplace bullying.

In 2011, the Canadian province of introduced new employer obligations to protect employees from psychological harassment, amending workplace standards to also address workplace violence. Similarly, in Turkey, an amendment to the Debts Law imposes a duty on employers to protect every employee from psychological abuse in the workplace.


Challenges faced by enforcing the new provision

  1. Workplace Culture Norms
    • The culture of power distance remains deeply embedded in Malaysian workplaces and society. Authority and seniority often wield significant influence, making victims reluctant to come forward for fear of retaliation or career repercussions[6].
  2. Reporting Channels Underdeveloped
    • Many workplaces lack accessible, confidential and well-structured reporting mechanism which align with the new legal provision, leaving victims without safe avenues to report incidents[7].
  3. Limitation in access and awareness to new legal provision
    • Some employers and HR department might still categorized workplace bullying under an internal HR issue. Not knowing it may bring a criminal liability.[8]
    • Employees might still vague on their rights in reporting the bullies, or undermining the enforcement.
  4. Limitation resource in enforcement and investigation
    • The judicial system is being resource limited in responding complaints of bullying swiftly and effectively. It takes time to develop a robust infrastructure and procedure.
    • Delays and backlogs in pending cases may erode public trust in both the legal system and the newly introduced provisions.

Impact Analysis

Workplace bullying can severely undermine a company’s growth, profitability and public image. The hidden costs often include lost productivity, wasted time and diminished morale, as employees’ energy is diverted to dealing with unpleasant circumstances rather than contributing to organizational goals.

In Germany, the Ministry of Labor and Social Affairs website, posted on a statement about

Bullying at Work” it stated,
Employers are obliged to protect their employees’ right of privacy and health. They must therefore prevent mobbing, act against employees who mob others and take all possible measures to prevent mobbing in their companies[9]  

For Employers,practical steps to address workplace bullying include: –

  1. Create Positive Working Environment
    • Employers have an obligation to provide workers, guests, and contractors a safe working environment under occupational health and safety legislations. This has been included a workplace that is free from bullying, as well as ensuring employees are physically and psychologically secure on their role.
  2. Education, Training and Awareness
    • The HR Department are needed be educated and training to recognized the act on physical and psychological bullying. Anti-bullying policies should be formalized and published in a company handbook, clearly outlining employee rights under Sections 507B to 507G of the Penal Code.
  3. Encourage Inspirational Leadership
    • Senior management and experienced staff should model respectful, inclusive behavior with clear professional boundaries. When leaders foster appreciation and mutual respect, the likelihood of bullying behaviour diminishes significantly.

For Employees, proactive measures include:

  1. Document Everything
    • Maintain detailed records of incidents, including photos, videos, written notes, and communication logs. Establishing a clear timeline of events will strengthen any formal report or legal claim[10].
  2. Don’t Take it Personally
    • Bullying often feels personal — and may be intended to be — but responding with professionalism rather than emotion can help address the behaviour more effectively[11].
  3. Be Brave to Report
    • Review the company policy and employment handbook for the reporting procedure. It is often best to voice up and stand on your own ground when dealing with bullies, in order to stop the events. Stay steady and calm to rise above in professional and rational.

Conclusion

When faced with undermining behavior, it is essential to remain calm, act professionally, and know your rights. Taking a constructive approach not only helps resolve the issue but also safeguards your reputation and well-being, which should always be a top priority.

The recent legislative amendments, alongside ongoing improvements to the criminal justice system, empower authorities to take quicker and more decisive action against offenders. The government has pledged to ensure that the enforcement of the amended Penal Code and its new provisions will be carried out equitably and fairly, without infringing upon the constitutional right to freedom of expression.

As stated by Bernama:

“With the implementation of this Act, the Madani Government remains committed to ensuring that the country’s laws remain relevant and responsive to the challenges of the digital world in the interest of safety, well-being and justice for all Malaysians.”[12]

The amended Penal Code marks a pivotal step in tackling workplace bullying, enabling faster and firmer action against offenders while safeguarding constitutional rights. Its success will depend not only on fair enforcement but also on legal practitioners guiding employers and employees in understanding their rights, obligations, and remedies — ensuring the law’s protections are realized in every workplace.