Comprehensive Leave Application Guide for Employees in Malaysia

Whether you're an employer or an employee, understanding annual leave entitlement in Malaysia is crucial. As per the Employment Act of 1955, annual leave is mandated for workers in West Malaysia earning RM 2,000 or less or engaged in manual labour. However, employment contracts exceeding RM 2,000 should still adhere to the Act or provide enhanced leave terms. Learn about types of leave entitlement, compliance with the Employment Act, and contractual obligations in this comprehensive guide on annual leave in Malaysia.

Types of Paid Leave Entitlements for Malaysian Workers Under the Employment Act

This informative article provides essential insights into the various types of leave that Malaysian workers are entitled to under the Employment Act. Gain a clear understanding of your rights and obligations as an employer or employee in Malaysia regarding leave entitlements under the Employment Act.

Annual Leave as Paid Leave

The Act outlines that every worker will be entitled to paid annual leaves as per the following conditions: 

• 8 days for every year of service for employees who have worked 1-2 years
• 12 days for every year of service for employees who have worked 2-5 years
• 16 days for every year of service for employees who have worked more than 5 years

Nonetheless, workers who have yet to complete full, continuous years of service in the company can still be entitled to paid annual leaves. However, the annual leave entitlement may be calculated based on the months of service. This can be computed by dividing the total annual leave entitlement by 12 months and multiplying that number by the months served. This applies to annual and other types of leave entitlement under the applicable regulations. However, it's important to note that workers absent from work without their employer's permission or any valid reason for more than 10% of the working year may have their entitlement to paid annual leaves revoked as per the regulations on annual leave in Malaysia.

Public Holiday in Malaysia

In Malaysia, employers need to be aware of their employees' public holiday entitlements and related leave entitlements. Per the Employment Act, every employee is eligible for a paid holiday on 11 gazetted holidays within the calendar year, including Malaysian National Day, Malaysia Day, the Birthday of the Yang di-Pertuan Agong, and the Birthday of the Ruler or the Yang di-Pertua Negeri. However, it's important to note that the number of public holidays may exceed this amount as authorities can appoint extra public holidays based on decisions made by federal and state governments, as stated in Section 8 of the Holidays Act 1951.

If an employer cannot permit leave on a public holiday due to company needs or other valid reasons, they must provide paid leave on another day as a substitute, per the applicable leave entitlement regulations. Similarly, if a public holiday falls when the employee is already on annual or sick leave, the employer must also provide leave on another day per the employee's leave entitlement. Malaysia employers must be aware of and comply with the leave entitlements related to public holidays to ensure fair and legal treatment of their employees. 

Medical Leave Entitlement

Employees in Malaysia are entitled to various types of leave when they fall sick, including hospitalization leave, MC (Medical Certificate) leave, or sick notice, as per the Employment Act. Most employment contracts include a limited number of paid sick days per year, and a medical certificate (MC) is commonly required. Under the Employment Act, employees are entitled to:

• 14 days per year if the employee has served 1-2 years
• 18 days per year if the employee has served 2-5 years
• 22 days per year if the employee has served 5 years or more

This totals up to 60 days of paid sick leave in a calendar year, including MCs issued by dental surgeons under the Act. However, it's important to note that this allocation of sick leave does not apply to hospitalization leave, which is issued by a registered medical practitioner or officer and can be up to 60 days per year.

Additionally, per the Employment Act 1955, employees must inform their employers, or at least attempt to tell, of their sick leave at least 48 hours in advance. However, for employees not covered by the Act, the notice period may be more flexible, ranging from a day to notice on the day itself. Employees must know their entitlements and follow the applicable regulations when taking sick leave in Malaysia.

Maternity Leave

Under the Employment Act in Malaysia, maternity leave, parenting leave, paternity leave, and parental leave are recognized and regulated. According to the Act, every working woman in connection with pregnancy is entitled to at least 60 consecutive days of paid maternity leave, along with a maternity allowance equivalent to her usual wage. However, certain conditions need to be fulfilled for the entitlement of maternity allowance:

• The female worker must have been in the contract of service with the company for 90 days over the 9 months leading up to her confinement period.
• The female worker must have been employed by her current employer within the 4 months following the confinement period.

These provisions ensure that female workers have adequate time off and financial support during their maternity leave while safeguarding their employment rights. Additionally, depending on the company's policies and local regulations, parenting leave, paternity leave, and parental leave may also be available to eligible employees. Employers and employees alike must be aware of these leave entitlements and comply with the relevant laws in Malaysia.

In conclusion, the Employment Act in Malaysia provides comprehensive regulations for various types of paid leave entitlements for workers, including annual leave, public holiday leave, sick leave with a medical certificate, and maternity/parenting/paternity leave. These leave entitlements are essential for ensuring fair treatment and protection of employment rights for employees. By understanding and adhering to these regulations, employers play a crucial role in creating a positive work environment that promotes work-life balance and employee well-being. Employees should be aware of their entitlements and exercise their rights to avail themselves of the paid leave they are entitled to. Staying updated with Malaysia's latest employment laws and regulations is essential for compliance and fostering healthy employment practices for all parties involved. 

Frequently Asked Questions (FAQs)

Q1: Is emergency leave paid in Malaysia?

A1: It depends on the company's policies. Some employers may provide paid emergency leave as part of a benefits package, but others may classify it as unpaid.

Q2: Why paid parental leave is important?

A2: Paid parental leave is important as it supports work-life balance, fosters child development, promotes parental health and well-being, advances gender equality, and enhances employee retention and productivity.

Q3: Is maternity leave paid or unpaid?

A3: Maternity allowance, based on the employee's average monthly wages, is provided by the employer or through the SOCSO Maternity Benefit Scheme to support the employee during her time away from work for childbirth and recovery.

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