Work-life balance is crucial in today's business environment, and Malaysia has made significant strides in recognizing the importance of supporting employees in their journey towards parenthood. These progressive policies not only support working parents but…
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Paid leave entitlements are crucial aspects of employment contracts in Malaysia. The Employment Act 1955 covers various types of leave, but it’s important to note that this only applies to employees in West Malaysia earning monthly wages of RM2,000 or less or those engaged in manual labor. Let’s explore the common types of paid leave entitlements based on the Employment Act 1955.
Public Holidays in Malaysia
Employees under the Employment Act 1955 are entitled to eleven paid gazetted public holidays within the calendar year, including National Day and Malaysia Day. Additional public holidays may be appointed under the Holidays Act 1951, subject to federal and state government decisions.
When public holidays fall on a weekend or another public holiday, employees covered under the Act will get a replacement day off on the next business day. Non-covered employees should refer to their employment contract and company policy for such arrangements.
Annual Leave
Employees are entitled to paid annual leave based on the following terms:
- Less than 2 years of service: 8 days per year
- 2 to 5 years of service: 12 days per year
- At least 5 years of service: 16 days per year
If an employee has not completed a full year of service, the entitlement is prorated based on the number of months served. For example, an employee entitled to 12 days of annual leave who has worked for 6 months will have 6 days of annual leave.
However, employees who are absent from work without the employer’s permission and a reasonable excuse for 10 percent of the working year will forfeit their right to paid annual leave.
Sick Leave (Medical Leave)
Most employment contracts provide for paid sick leave, usually with a limit on the number of days per calendar year. Medical certificates (MCs) may be required, but some companies trust their employees without this requirement.
For employees under the Employment Act 1955, the entitlement is as follows:
- 14 days per year for less than 2 years of employment
- 18 days per year for 2 to 5 years of employment
- 22 days per year for 5 years or more of employment
Employees are entitled to a total of 60 days of paid sick leave in a calendar year, including MCs issued by dental surgeons. Additionally, there is a separate allocation of 60 days of sick leave for hospitalization, certified by a registered medical practitioner or officer.
Employees under the Act must inform their employers of sick leave at least 48 hours in advance, while non-covered employees may have more flexible notification requirements.
Maternity Leave
In a welcome update, the Employment Act 1955 has been amended to increase the entitlement of paid maternity leave for new mothers. Previously set at 60 days, the amendment now grants working mothers 98 days of leave for post-delivery recovery.
Moreover, the 2022 amendments offer enhanced protection for pregnant female employees and those dealing with pregnancy-related illnesses. Starting from 1st January 2023, employers are prohibited from terminating or giving notice of termination to this group of employees, except in cases of breach of contract, misconduct, or business closure.
Unused Annual Leave
Employees are encouraged to utilize their annual leave within 12 months of service to avoid forfeiture. Encashing unused leave is not mandatory for employers, and employees should consult their contracts or company policies for this option. Upon resignation, employees may use the remaining annual leave during the notice period, but employers have the right to reject leave requests. In such cases, employees are entitled to payment for the remaining leave balance.
Bottom Line
In conclusion, employers and employees in Malaysia must be well-informed about annual leave entitlements to ensure compliance with employment laws and maintain a balanced work environment. Open communication and understanding between both parties are essential, especially during uncertain times. Staying updated with the Employment Act 1955 and employment contracts helps promote fairness and a positive workplace atmosphere. Seeking legal advice or consulting relevant authorities when needed ensures the proper implementation of annual leave policies.
Disclaimer: The information in this article is for general informational purposes only and not legal advice. Employment laws may change, and specific guidance should be sought from a qualified legal professional or directly from the relevant government authorities, such as the Lembaga Hasil Dalam Negeri (LHDN) in Malaysia, for accurate and up-to-date information. The author and publisher are not liable for any actions taken without appropriate legal consultation or direct consultation with LHDN or other relevant authorities.
