Types of Leave in Malaysia: What Employers Need to Know

In Malaysia, managing employee leave can be a complex task for employers, especially with the diverse types of leave entitlements outlined in local legislation. Understanding these various types of leave is crucial for ensuring compliance and maintaining a harmonious work environment.

Here’s a breakdown of the main types of leave in Malaysia that employers need to be aware of:

Annual leave is one of the most common types of leave. According to the Employment Act 1955, employees are entitled to a minimum of 8 days of annual leave if they have worked for less than 2 years, and up to 16 days if they have been with the company for more than 5 years.

Employers can offer more than the statutory minimum, but they must ensure that the leave is properly documented and managed.

Sick leave is provided to employees who are unable to work due to illness or injury. Under the Employment Act 1955, employees are entitled to 14 days of paid sick leave per year if they have been employed for less than 2 years, and up to 22 days if they have worked for more than 2 years. For hospitalisation, employees are entitled to an additional 60 days of sick leave, provided they have been employed for at least 2 years.

Maternity leave is available to female employees who are expecting a child. The Employment Act 1955 entitles female employees to 60 days of paid maternity leave. This leave is applicable for up to 5 children, and it is important for employers to ensure that they comply with this provision to support their female workforce.

Paternity leave is relatively new in Malaysia and is less standardized than maternity leave. As of recent updates, some companies offer paternity leave as part of their employee benefits, typically ranging from 3 to 7 days. However, this leave is not yet mandated by law, and employers may have different policies regarding its provision.

Public holidays are days recognized by the government as non-working days. Malaysia has 11 statutory public holidays each year. If employees are required to work on these days, they are generally entitled to additional pay or a day off in lieu, depending on the company’s policy and the employment contract.

Compassionate leave is offered to employees who need time off due to family emergencies or bereavements. This type of leave is usually at the discretion of the employer and is not legally mandated. Companies may choose to offer a few days of paid or unpaid compassionate leave based on their internal policies.

Unpaid leave can be requested by employees who have exhausted their annual or sick leave entitlements or for other personal reasons. This type of leave is not covered under the Employment Act 1955 and is generally granted based on the employer’s discretion. Employers should have clear policies in place for managing unpaid leave requests.

Study leave is not a statutory entitlement but may be offered by employers to support employees pursuing further education or professional development. This leave is typically unpaid and is granted at the employer’s discretion. It’s a good practice to have a clear policy outlining the conditions and duration of study leave.

Clear Policies

Develop and communicate clear leave policies to employees, ensuring they understand their entitlements and the process for applying for leave.

Record Keeping

Maintain accurate records of all types of leave taken by employees to ensure compliance and facilitate effective management.

Compliance

Stay updated with changes in labor laws and regulations to ensure your leave policies remain compliant with legal requirements.

Flexibility

Consider offering additional leave benefits to enhance employee satisfaction and retention, especially in competitive industries.

By understanding and effectively managing the various types of leave, employers in Malaysia can foster a supportive work environment and ensure legal compliance.

How should public holidays be managed if employees work on these days?

Employees who work on public holidays are generally entitled to additional pay or a day off in lieu. This is usually outlined in the company's policy and employment contract.

How many days of annual leave are employees entitled to?

Employees are entitled to:

• 8 days if employed for less than 2 years.
• 12 days if employed for 2 to 5 years.
• 16 days if employed for more than 5 years.

How is unpaid leave handled?

Unpaid leave is not covered by the Employment Act 1955 and is granted based on the employer’s discretion. Employees need to follow the company’s procedures for requesting unpaid leave.

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Discover more insights:

• Medical and Hospitalization Leave in Singapore
• Leave Application Guide for Singapore Employers Hiring Indonesian Employees
• Guide to Hiring Employees in Malaysia: Laws and Regulations
• Malaysia Payroll Systems: A Guide to Rules, Regulations, and Compliance
• Legal Considerations for Employment Contracts in Malaysia

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