Moonlighting Law in Malaysia: Can You Be Fired for Having a Second Job?

Quick Answer: Moonlighting is legal in Malaysia. The Employment Act 1955 does not ban a second job, and even provides for employees with more than one employer. What can stop you is your employment contract, a conflict of interest with your main employer, or, for civil servants, regulation 5 of the Public Officers Regulations 1993. Side income must be declared to LHDN.

Key fact	Rule in Malaysia
Is a second job illegal?	No. The Employment Act 1955 contains no ban on outside work
What can restrict it	Your contract (exclusivity or conflict-of-interest clauses) and your duty of good faith
Dismissal for misconduct	Allowed only after due inquiry (Employment Act, section 14)
Non-compete after you leave	Void unless an exception applies (Contracts Act 1950, section 28)
Civil servants	Need prior written permission from their Head of Department (P.U. (A) 395/1993, regulation 5)
Daily hours one employer may require	Normally 8, never more than 12 including overtime (Employment Act, section 60A)
Unfair dismissal claim	Written representation within 60 days (Industrial Relations Act 1967, section 20)
Tax	All side income is taxable and must be declared to LHDN

Checked against the Employment Act 1955 (reprint incorporating amendments to 1 January 2023), the Public Officers (Conduct and Discipline) Regulations 1993 and the Contracts Act 1950 on 1 October 2026.

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Is it legal to have two jobs in Malaysia?

Yes. No Malaysian law stops a private-sector employee from holding a second job.

The Employment Act 1955 governs most employment contracts in Peninsular Malaysia and Labuan. It says nothing against outside work. It even anticipates it: section 37 sets out how a female employee claims maternity allowance "from more than one employer". Sabah and Sarawak have their own Labour Ordinances, which do not ban second jobs either.

That does not mean any second job is safe. The rules that decide it are in three places:

1. Your employment contract. Many contracts require you to devote your full working time to the employer, or to ask before taking outside work.
2. Your duty of good faith. An employee may not work against the employer's interests, for example by serving a competitor or using its clients.
3. Special rules for some jobs. Civil servants, and staff in regulated industries such as banking, have stricter conduct rules.

Can you be fired for having a second job?

You can be, if the second job breaches your contract or amounts to misconduct. You cannot be fired simply for having one when nothing in your terms prohibits it.

Under section 14(1) of the Employment Act, an employer may dismiss without notice, downgrade or impose a lesser punishment for "misconduct inconsistent with the fulfilment of the express or implied conditions of his service", but only "after due inquiry". During the inquiry you can be suspended for up to two weeks on at least half your wages, and if no misconduct is found the employer must repay the wages withheld.

Situations that commonly count as misconduct:

Situation	Why it is risky
Working for a competitor	Conflicts with your duty of good faith to your employer
Doing the side job during working hours	You are paid for that time by your main employer
Using company laptops, email or data	Misuse of company property and possibly confidential information
Ignoring a contract clause that requires approval	A breach of an express term of your contract
Missing work or deadlines through fatigue	A performance and attendance issue, whatever the side job is

If you believe you were dismissed without just cause, you can make a written representation to the Director General of Industrial Relations under section 20 of the Industrial Relations Act 1967. It must be filed within 60 days of the dismissal; the deadline is strict.

What about non-compete clauses?

A clause that stops you working in your field after you leave is generally void in Malaysia.

Section 28 of the Contracts Act 1950 says every agreement restraining anyone from exercising a lawful profession, trade or business is void to that extent. Its exceptions cover the sale of a business's goodwill and arrangements between partners, not ordinary employees. So a clause barring you from joining a competitor for two years after resigning usually cannot be enforced.

Two caveats matter for moonlighting:

• Section 28 protects your right to work after you leave. While you are still employed, your contract's exclusivity and conflict-of-interest terms and your duty of good faith still apply.
• Confidential information stays protected. You may not use your employer's client lists, pricing or trade secrets in a side business, during or after employment.

The law may change. The Committee for the Review and Reform of Contract Law proposed in its June 2026 final report to replace section 28's blanket rule with a reasonableness test. As of 1 October 2026 the proposal had not been tabled in Parliament, so the current rule applies.

Can civil servants have a side job?

Only with permission. Regulation 5 of the Public Officers (Conduct and Discipline) Regulations 1993 says a public officer shall not take part in managing any commercial, agricultural or industrial business, or "undertake for reward any work with any institution, company, firm or private individual", unless it is part of their duties.

The officer may do such work with the prior written permission of their Head of Department. The Head of Department must make sure the work:

• does not take place during office hours or when the officer is needed for official duties;
• does not impair the officer's usefulness in the public service; and
• does not conflict with the interests of the public service.

There is a less-known rule too. Under regulation 5(4), unless the Federal Treasury decides otherwise, money earned from such outside work is deposited with the Treasury, which decides how much the officer may keep.

How many hours can you work across two jobs?

The Employment Act limits what each employer may require, not your total across employers.

Under section 60A, one employer may not require you to work more than eight hours a day, more than 45 hours a week, or more than five hours without a 30-minute break. With overtime, an employer may not require more than 12 hours in any one day except in emergencies listed in the Act.

Those limits apply to each contract separately. If your main job is 45 hours a week and you also drive e-hailing at night, the law does not cap your combined hours, but your employer can still act if fatigue affects your work. If you need to rearrange your hours, section 60P lets you apply in writing for a flexible working arrangement covering your hours, days or place of work. Under section 60Q your employer must approve or refuse within 60 days and give reasons in writing for a refusal.

How is side income taxed?

All income from a second job or side business is taxable, and you must declare it to LHDN.

Worked example. Hafiz is a composite case, not a real person. He is an account executive at a logistics company in Shah Alam earning RM4,000 a month, and on weekends he photographs weddings in the Klang Valley. In 2026 his photography brings in RM9,600, and he spends RM3,600 on equipment hire and travel, leaving a business profit of RM6,000. He is single and claims only the standard reliefs.

	Salary only	Salary plus side business
Employment income	RM48,000	RM48,000
Business profit	RM0	RM6,000
Less: individual relief	RM9,000	RM9,000
Less: EPF relief (capped)	RM4,000	RM4,000
Less: SOCSO and EIS relief (capped)	RM350	RM350
Chargeable income	RM34,650	RM40,650
Tax before rebate	RM589.50	RM939.00
RM400 rebate (chargeable income up to RM35,000)	minus RM400	not available
Tax payable for the year	RM189.50	RM939.00

The RM6,000 profit adds RM749.50 to his tax bill, partly because it takes him past the RM35,000 limit for the RM400 rebate. Monthly PCB from his salary covers only the employment part, so he should budget for the balance. Because he has business income, he files Form B rather than Form BE.

If you run the side business under a trade name, register it with SSM under the Registration of Businesses Act 1956. Our influencer tax guide covers sponsored products and online income in more detail.

How do you moonlight safely?

1. Read your contract and handbook. Look for clauses on "full time and attention", "outside employment", "conflict of interest" or "approval of external work".
2. Ask in writing if the contract requires it. Describe the side work, the hours and why it does not compete. Keep the approval.
3. Keep it separate. Never use company time, devices, email, software or data.
4. Avoid competitors and clients. Do not work for a competitor or sell to your employer's customers without permission.
5. Declare the income to LHDN and keep receipts for business expenses.

If your side job is e-hailing or delivery work, the Gig Workers Act 2025 gives you rights against the platform itself.

If something goes wrong at work, our guide to workplace bullying and harassment legal options explains where to complain and what remedies exist.

What mistakes do Malaysians make with second jobs?

• Assuming silence means permission. The Employment Act does not ban second jobs, but your contract might.
• Running the side job on the company laptop. Misuse of company property is a common ground for dismissal after inquiry.
• Civil servants starting paid work without written permission. Regulation 5 requires it before you begin.
• Forgetting the tax. Side income pushes up chargeable income and can remove the RM400 rebate.

Where to go next

• Read about influencer and online income tax.
• Doing platform work? See your rights under the Gig Workers Act 2025.
• Facing pressure at work? See workplace bullying and harassment legal options.
• Looking for flexible work? Browse part-time jobs or all jobs on SuperJobs.

Sources

All checked 1 October 2026.

• Employment Act 1955 (Act 265), reprint incorporating amendments to 1 January 2023: sections 14, 37, 60A, 60P and 60Q.
• Public Officers (Conduct and Discipline) Regulations 1993, P.U. (A) 395/1993, regulation 5.
• Contracts Act 1950 (Act 136), section 28; Baker McKenzie on the proposed amendment to section 28, September 2026.
• Industrial Relations Act 1967 (Act 177), section 20.
• LHDN individual income tax rates, reliefs and the RM400 rebate for year of assessment 2026; Registration of Businesses Act 1956.