Employer General Duties Under OSHA 1994 Malaysia: Section 15 Obligations and Penalties

A worker in your factory slips on an oily floor and fractures his wrist. DOSH investigates. Their first question isn't about what happened. It's about what you did to prevent it. Did you maintain the premises? Did you train the worker? Did you have a safe system of work? These are your legal obligations under Section 15 of OSHA 1994. And since June 2024, failing them can cost you up to RM500,000.

This guide breaks down your general duties as an employer under Section 15 of OSHA 1994, what each obligation means in practice, and how these duties connect to your insurance coverage.

This guide covers:

• What Section 15 requires from every Malaysian employer
• The five specific duties under Section 15(2)
• Post-2024 penalties for non-compliance
• How employer duties connect to liability and workers' insurance
• Self-assessment compliance checklist

What does Section 15 OSHA 1994 say?

Section 15(1) states: "It shall be the duty of every employer and every self-employed person to ensure, so far as is practicable, the safety, health and welfare at work of all his employees."

The key phrase is "so far as is practicable." This doesn't mean you must eliminate all risk. It means you must take all reasonably practicable steps to reduce risk. What's practicable depends on the severity of the risk, the likelihood of it occurring, and the cost and difficulty of removing or reducing it.

Section 15(2) breaks this down into five specific obligations:

Section	Duty	What It Means in Practice
15(2)(a)	Safe plant and systems of work	All machinery must be maintained, inspected, and safe to operate. Work processes must be designed to minimise risk.
15(2)(b)	Safe handling, use, storage, and transport of substances	Chemical storage must comply with regulations. Hazardous materials must have SDS sheets accessible. Transport procedures must be documented.
15(2)(c)	Information, instruction, training, and supervision	Workers must be trained for their tasks. Training records must be documented. Supervision must be adequate for the risk level.
15(2)(d)	Safe workplace and means of access/egress	Floors, walkways, stairs, ladders must be maintained. Emergency exits must be accessible. Workplace conditions (lighting, ventilation, temperature) must be safe.
15(2)(e)	Adequate welfare facilities	Toilets, drinking water, washing facilities, rest areas, first aid. Section 26 adds that employers cannot charge employees for these.

These five duties cover almost everything in your workplace. If something goes wrong and a worker is injured, DOSH will assess your compliance against each of these five areas.

Extended duties: Sections 16, 17, and 18

Section 15 isn't the only duty. Three additional sections expand your obligations:

Section	Duty	Key Point
Section 16	Duty to formulate a safety and health policy	Written OSH policy signed by the CEO. Must be communicated to all employees. Required for all employers with 5+ employees.
Section 17	General duties to persons other than employees	You must protect visitors, contractors, and members of the public affected by your work activities. This is the legal basis for CGL insurance requirements.
Section 18	Duty of occupier of premises	The occupier (not just the employer) must ensure premises safety for anyone working there, including contractors and visitors.

Section 17 is especially relevant for construction and industrial operations. If a subcontractor's worker is injured at your premises, or a delivery driver is hurt in your loading bay, Section 17 creates a duty of care even though they're not your employee. This is exactly the scenario that CGL insurance is designed for.

Penalties for breaching employer duties (post-2024)

The OSHA 1994 Amendment 2022 (Act A1648), effective 1 June 2024, dramatically increased penalties. Here's the before and after:

Offence	Pre-June 2024	Post-June 2024
Breach of general duty (Section 15)	Fine up to RM50,000 or 2 years imprisonment	Fine up to RM500,000 or 2 years imprisonment or both
Breach of duty to non-employees (Section 17)	Fine up to RM20,000 or 2 years imprisonment	Fine up to RM500,000 or 2 years imprisonment or both
Failure to formulate OSH policy (Section 16)	Fine up to RM50,000 or 2 years imprisonment	Fine up to RM500,000 or 2 years imprisonment or both
Failure to comply with improvement/prohibition notice	Fine up to RM50,000 or 2 years imprisonment	Fine up to RM500,000 or 2 years imprisonment or both

The tenfold increase in fines is the single most important regulatory change for Malaysian employers in the last decade. It transforms OSHA compliance from a "nice to have" into a financial imperative. For a detailed breakdown of all OSHA 1994 penalties, see our dedicated guide.

The insurance connection: employer duties and coverage

Section 59 of OSHA 1994 explicitly states that civil liability is not affected by Parts IV, V, and VI. This means an injured employee can still sue you in civil court even if you've paid the DOSH fine. The regulatory penalty and the civil claim are separate.

Risk from Employer Duty Breach	Financial Exposure	Insurance Cover
Employee injured at work	Medical costs, compensation, civil lawsuit	Workmen Compensation (WC)
Third party (visitor, contractor) injured at your premises	Third-party claim for injury, property damage	CGL Insurance
Machinery failure causing injury	Worker compensation + machine repair/replacement	WC + MB Insurance
Unsafe premises causing fire	Property damage, BI, potential third-party claims	Fire / IAR + CGL
DOSH fine (regulatory penalty)	Up to RM500,000	Not insurable. Regulatory fines are not covered by any insurance policy.

The last row is critical. Insurance covers the civil and commercial consequences of workplace incidents, but it doesn't cover regulatory fines. You can't insure your way out of OSHA non-compliance. Prevention is the only protection against the RM500,000 fine. Insurance covers the financial damage after an incident, not the regulatory penalty.

Employee duties under OSHA 1994

Employers aren't the only ones with duties. Section 24 places general duties on employees too:

Employee Duty	Section
Take reasonable care for own safety and safety of others	24(1)(a)
Cooperate with employer on safety matters	24(1)(b)
Wear or use PPE provided by employer	24(1)(c)
Comply with safety instructions and procedures	24(1)(d)

But here's what many employers misunderstand: employee duties don't reduce employer duties. Even if a worker removes his hard hat and gets injured, DOSH will still ask whether you provided training, conducted HIRARC assessments, and enforced PPE requirements. The employer's obligation to provide a safe system of work includes enforcing compliance, not just providing equipment.

Self-assessment checklist

Section 15(2) Obligation	Compliance Check	Status
(a) Safe plant and systems	All machinery inspected and maintained on schedule? Safe operating procedures documented?	☐
(b) Safe substances	Chemical inventory updated? SDS sheets accessible? CHRA conducted for chemicals?	☐
(c) Training and supervision	Induction training for new workers? Job-specific training records? Adequate supervisors for risk level?	☐
(d) Safe workplace	Floors, walkways maintained? Emergency exits clear and marked? Lighting and ventilation adequate?	☐
(e) Welfare facilities	Toilets, drinking water, rest areas, first aid provided? Not charged to employees?	☐
Section 16	Written OSH policy signed by CEO? Communicated to all employees?	☐
HIRARC	Risk assessments conducted for all work activities? Control measures implemented?	☐
Insurance coverage	WC insurance for workers? CGL for third parties? Coverage adequate for current operations?	☐

FAQ

What is Section 15 of OSHA 1994?

Section 15 imposes a general duty on every employer in Malaysia to ensure, so far as is practicable, the safety, health, and welfare at work of all employees. It's the cornerstone of employer responsibility under the Act. Section 15(2) breaks this into five specific areas: safe plant, safe substances, training, safe premises, and welfare facilities.

What are the penalties for breaching Section 15?

Since the OSHA 1994 Amendment 2022 (Act A1648) took effect on 1 June 2024, penalties for breaching Section 15 are a fine up to RM500,000 or imprisonment up to 2 years or both. This is a tenfold increase from the previous maximum of RM50,000. For a full breakdown, see our OSHA penalties guide.

Does Section 15 apply to all industries?

OSHA 1994 applies to all industries listed in the First Schedule, which covers manufacturing, mining, construction, agriculture, utilities, transport, wholesale/retail, hotels/restaurants, finance, public services, and more. It covers approximately 90% of Malaysia's workforce. The only exemptions are armed forces and work on ships governed by the Merchant Shipping Ordinance.

Can I be sued for breaching my employer duties even if I pay the DOSH fine?

Yes. Section 59 of OSHA 1994 explicitly preserves civil liability. An employee (or third party under Section 17) can pursue a civil claim for damages separately from any DOSH prosecution. This is why WC insurance and CGL insurance are important: they cover the civil claims. The DOSH fine itself is not insurable.

What's the difference between Section 15 and Section 17?

Section 15 covers your duty to your own employees. Section 17 covers your duty to persons other than employees, such as visitors, contractors, delivery personnel, and members of the public who enter your premises. Both carry the same maximum penalty of RM500,000 since the 2024 amendments.

Do I need a written safety policy?

Yes, if you employ 5 or more persons. Section 16 of OSHA 1994 requires a written safety and health policy prepared and revised as needed, signed by the employer (CEO or equivalent), and communicated to all employees. This policy is one of the first things DOSH checks during any investigation.

Does employer liability insurance cover OSHA fines?

No. Regulatory fines and penalties imposed by DOSH or the courts for OSHA violations are not covered by any insurance policy. Insurance covers civil liabilities: WC insurance covers employee injury compensation, and CGL covers third-party claims. But the fine itself must be paid by the employer directly.

What should I do if an employee is injured?

Report the incident to DOSH as required under Section 32 (notification of accidents). Provide first aid and medical attention. Preserve the incident scene for investigation. Notify your insurer. File a workmen compensation claim if applicable. Document everything. The first 24 hours after an incident determine both your compliance status and your insurance claim outcome.

Foundation Conclusion

Section 15 of OSHA 1994 is the legal foundation for everything employers must do to keep their workers safe. Since June 2024, failing these duties carries fines up to RM500,000, and civil liability from injured workers adds financial exposure on top of that.

Compliance reduces your risk. Insurance covers the financial consequences when incidents happen despite compliance. Workmen Compensation handles employee injury claims. CGL handles third-party claims under Section 17. Together, they form the employer's financial safety net, but they don't replace the legal duty to prevent harm in the first place.

Talk to our risk specialists about employer liability and workmen compensation insurance

Disclaimer: This article provides general guidance on employer duties under the Occupational Safety and Health Act 1994 (Act 514) as amended by Act A1648 (effective 1 June 2024) as of March 2026. This is not legal advice. Regulations may be amended and specific obligations depend on your industry and circumstances. Always consult DOSH or qualified OSH professionals for your specific situation.