In Malaysia, paid leave is governed by the Employment Act 1955, which outlines the various types of leave entitlements for employees. Understanding these entitlements is essential for both employees and employers to manage their human resources effectively.
Paid leave in Malaysia can be broadly divided into several categories, including annual leave, public holidays, and other statutory leaves.
Public holidays are another form of paid leave in Malaysia. As per Section 60D (1) of the Employment Act 1955, employees are entitled to paid holidays on eleven gazetted public holidays and any other day appointed as a public holiday under Section 8 of the Holidays Act 1951.
Apart from these, the Employment Act 1955 also establishes six different types of statutory leave to which employees are entitled. These can include sick leave, maternity leave, paternity leave, and compassionate leave, among others. It is crucial for employers and human resources professionals to be familiar with these leave entitlements to ensure compliance with the relevant laws and regulations.
Understanding paid leave in Malaysia requires a thorough knowledge of the Employment Act 1955 and related legislation. Employers and employees should be well-informed about the various types of leave entitlements and the relevant criteria for eligibility to maintain a compliant and efficient workplace environment.
Annual and Public Holidays Leave
In Malaysia, employees are entitled to both annual leaves and paid public holidays. This legislated time off allows workers to enjoy a work-life balance and recharge. The Malaysian government has specified the minimum number of annual leaves and recognized public holidays under the Employment Act 1955 and the Holidays Act 1951, respectively.
Regarding annual leave, the entitlement varies depending on the duration of service:Â
- Employees with less than two years of employment are entitled to 8 days of annual leave
- Employees for 2 to 5 years are entitled to 12 days annually
- Employees with over 5 years of service are entitled to 16 days of annually
- If the employment period is less than 12 months, the leave entitlement will be calculated proportionally
Public holidays form another essential aspect of the leave policy. The Holidays Act 1951 requires employers to provide paid holidays on 11 gazetted public holidays, which include:
- New Year’s Day
- Chinese New Year (2 days)
- Federal Territory Day
- Labour Day
- Wesak Day
- National Day
- Malaysia Day
Various other public holidays depending on the specific state or territory
It is crucial to note that public holidays are not part of the annual leave entitlement, meaning that employees can enjoy these paid days off without utilizing their annual leave.
Malaysian employees are entitled to a minimum number of paid annual leaves and public holidays, ensuring they receive adequate rest and time away from work. By adhering to the country’s regulations outlined in the Employment Act 1955 and the Holidays Act 1951, employers and employees can foster a balanced work environment that promotes productivity and employee wellbeing.
Maternity and Paternity Leave
In Malaysia, both maternity and paternity leave are recognized statutory entitlements provided to eligible employees. The Employment Act (EA) 1955 covers the provisions for these leaves, ensuring that expecting parents can avail necessary time off work following the birth of their child.
Maternity leave is available to all female employees in Malaysia, with recent amendments to the law expanding the coverage to include all employees, regardless of their wages. As per the Employment Act, eligible employees are entitled to a minimum period of maternity leave. During this leave, female employees receive paid maternity leave, thus ensuring financial security during their confinement period. The duration of paid maternity leave is based on different factors, and information on the exact number of days can be found in the Employer’s Guide to Maternity Leave.
Paternity leave, on the other hand, has also seen some changes in recent years. Malaysia has implemented expanded provisions for paternity leave, effective from January 1, 2023, ensuring that male employees receive the right to take time off work following the birth of a child. More details about these expanded provisions can be found in the Society for Human Resource Management article.
In compliance with Part IX (Maternity Protection) of the EA, female employees are protected from termination during their maternity leave period. Section 60E(1) of the act clearly states that any dismissal during this period is considered unlawful. Furthermore, Section 60F(3) ensures that the maternity allowance is paid to the employee during the confinement period, safeguarding the financial well-being of the family during this time.
Malaysia’s maternity and paternity leave provisions have evolved with time, ensuring that both male and female employees receive the necessary legal and financial support to manage their work-life balance effectively. The Employment Act serves as the guiding document for these matters, with recent amendments extending provisions to a larger employee base.
Sick and Hospitalisation Leave
In Malaysia, employees are entitled to both sick leave and hospitalisation leave. Sick leave is granted when an employee is ill but does not require hospitalisation, while hospitalisation leave covers instances when employees need to be admitted to a hospital.
The number of paid sick days an employee is entitled to depends on their length of service.Â
- Employees who have worked for a period of 1 to 2 years are entitled to 14 days of paid sick leave
- Employees who have worked for 2 to 5 years, number increases to 18 days
- Employees for over 5 years, employees are entitled to 22 days of paid sick leave.
When hospitalisation is necessary, employees are entitled to an additional 60 days of leave annually.Â
- Employees with 1-2 years of service can have up to 74 days
- Employees with 2-5 years of service can have up to 78 days
- Employees with over 5 years of service can have up to 82 days annually
In order to claim sick or hospitalisation leave, employees may be required to provide proof from a registered medical practitioner in the form of a Medical Certificate (MC). The MC should be obtained from a panel doctor, who is a registered healthcare provider approved by the employer.
It is essential for employees to know their rights and entitlements when it comes to sick and hospitalisation leave in Malaysia. Employers are also responsible for providing accurate information and ensuring that the leave policies are adhered to in a fair and professional manner.
Employment Contract and Salary Matters
In Malaysia, an employment contract outlines the terms and conditions between an employer and an employee. It should cover essential aspects such as the employee’s job scope, working hours, and compensation package. According to the Employment Act, the law applies to both manual and non-manual workers earning below a specific threshold, including full-time, part-time, temporary, and contract employment.
An employee’s monthly salary typically consists of their basic pay and other associated allowances. The ordinary rate of pay is the employee’s standard hourly wage, which should be outlined clearly in the employment contract. This rate helps determine the employee’s monthly rate of pay, calculated by multiplying their ordinary rate by the total number of hours worked in a month.
Payroll plays a significant role in ensuring timely and accurate salary disbursement to all employees. Employers are required to keep detailed records of employees’ wages and deductions. These records should include components such as basic salary, overtime pay, allowances, and statutory contributions, allowing for transparency in the employee-employer relationship.
Employers and employees should familiarize themselves with these entitlements to promote a healthy work-life balance and a productive working environment.
Special Types of Leave
Apart from the mandatory leave types in Malaysia, there are several special types of leave that employers may choose to offer to their employees to accommodate personal needs and circumstances. These optional leaves can help employees maintain a healthy work-life balance and feel more valued by the organization.
- Unpaid leave is a type of leave where an employee can take time off work without pay. This could be for various reasons, such as personal matters, family emergencies, or extended holidays. Employers have the discretion to approve or deny unpaid leave requests.
Bereavement leave provides employees with paid time off to attend funeral services and mourn the loss of a close family member. Although not legally required in Malaysia, many organizations offer bereavement leave as part of their employee benefits package.
Emergency leave may be granted when an employee encounters unexpected situations that require their immediate attention, such as accidents or natural disasters. This leave is typically provided on a case-by-case basis and may be paid or unpaid depending on the employer’s policies.
Marriage leave is an optional benefit that allows employees to take time off for their wedding. This leave is granted in addition to annual leave entitlements, and the duration of the leave may vary depending on the employer’s policies.
Parental leave goes beyond mandatory maternity and paternity leave and includes additional time off for adopting or fostering a child, as well as time off for parents to attend school meetings or other childcare-related appointments. Eligibility and duration depend on the company’s policies and discretion.
Compassionate leave is granted when an employee faces a personal or family crisis, such as the illness of a loved one. Like emergency leave, compassionate leave can be paid or unpaid and is subject to the employer’s approval.
Study leave allows employees to pursue further education or professional development courses. This type of leave can be paid or unpaid, and the duration granted will vary depending on the employer’s policies and the employee’s individual circumstances.
While these special types of leave are not required by law in Malaysia, offering them can enhance employee satisfaction and improve overall working conditions. Employers should consider incorporating these leave options into their company policies to create a more supportive and inclusive workplace.
Leave Regulations per Sector
In Malaysia, the legal entitlement to paid annual leave varies depending on the sector and the employee’s years of service. Both the private and public sectors follow regulations outlined in the Employment Act for granting annual leaves.
Private Sector: Private sector employees in Malaysia are entitled to a minimum amount of paid annual leave based on their length of service with a company. Employees with less than 2 years of service receive 8 days of annual leave, those with 2 to 5 years of service are entitled to 12 days, while employees with more than 5 years of service accrue 16 days of leave time.
Public Sector: Employees in the public sector are also entitled to paid annual leave; however, the regulations may differ slightly from the private sector. Public sector employees are eligible for paid holidays on eleven gazetted holidays under the legislation. Additionally, Malaysian authorities can announce extra public holidays for a specific year under the Holidays Act 1951.