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Home > Career Growth and DevelopmentPaid and Unpaid Leave in Malaysia: A Complete Guide

Paid and Unpaid Leave in Malaysia: A Complete Guide

Even the most hard-working and dedicated employees need a break from work from time to time. The time off might be necessary due to an illness, personal matters, or something else. These breaks often allow a person to deal with issues that need their attention and come to work with greater productivity and stronger focus. 

So, when you enter a workplace, you must become aware of the paid and unpaid leave that is available to you. Continue exploring this article to discover all about it in detail. 

1.  Annual Leave

Let’s discover some details about the annual leave entitlement available to professionals. 

1.1. Definition and purpose of annual leave

Annual leave means getting time off from work with pay. Employers give this to their workers. It’s important because it lets employees relax, feel refreshed, and enjoy good moments with their loved ones. 

1.2. Statutory entitlement under the Employment Act 1955

It depends on the number of years an employee has been working at a firm. 

Minimum number of days based on years of service

  • 2 years: 8 days of vacation each year.
  • 2 to 5 years: 12 days of annual leave in Malaysia.
  • 5 years and more: 16 days of annual leave per year.

Calculations for part-time and temporary employees

Part-time and temporary workers are also eligible for annual leave. The number of leave available will be dependent on the number of hours they are working. 

1.3. Carrying over unused annual leave

Employers may allow employees to carry forward unused vacation days into the following year. But this lies wholly within company policy.

1.4. Requesting and scheduling annual leave

Employees should follow their company’s procedure for seeking annual leave. This generally means filling out a leave application form and getting approval from your supervisor to take time off work. If an employee resigns or is dismissed, compensation equivalent to his accrued but unutilised annual leave should be made. This ensures that he is paid for leave earned but not taken.

2. Sick Leave

This is often a type of emergency leave in Malaysia. It is available during times of physical or mental issues. 

2.1. Definition and purpose of sick leave

This allows employees to take time off work when they are sick or injured. It helps keep them from infecting others and ensures their proper recovery. 

2.2. Statutory entitlement under the Employment Act 1955

Let’s learn about the legal policies surrounding this type of leave. 

Minimum number of days based on years of service

The number of sick leave in Malaysia available for you will depend on your years of service:

  • Less than 2 years service: Up to a maximum of 14 days sick leave.
  • 2 to 5 years of service: 18 sick days.
  • Over 5 years of service: 22 days

Hospitalisation leave entitlement

Besides regular sick leave, employees are entitled to 60 days of hospitalisation leave per annum where necessary.

2.3. Medical certificates and notification requirements

Paid sick leave should be granted on the basis of a medical certificate from a registered medical practitioner. The employer must be notified promptly so everything is done according to legal procedure and on paper. 

2.4. Sick leave during probation period

An employee under probation with the company is entitled to sick leave as provided in the Employment Act. This is a right that should not be denied based on probationary status

2.5. Sick leave and medical benefits

Employers often have insurance or an additional benefit contract that matches the statutory sick leave. These benefits improve employee health and well-being, which can reduce the absenteeism rate among employees 

3. Maternity Leave

It is a period of time when a female employee takes paid leave during pregnancy and after childbirth. It guarantees that new moms can recover from childbirth and have the time to bond with a child without the additional stress of work.

3.1. Statutory entitlement under the Employment Act 1955

Let’s get into the details of labour law for maternity leave in Malaysia. Women employees are eligible for 98 consecutive days of maternity leave. It ensures that mothers get the time they need to rest and recover while caring for their newborn. Employees must have worked for one employer for 90 days, of which at least four months must have been prior to the birth.

3.2. Maternity leave for non-eligible employees

It is worth noting also that many employers will offer maternity leave as a perk anyway, irrespective of whether you meet the statutory criteria. 

3.3. Maternity allowance and benefits

Employees receive their full salaries while on maternity leave, which means that they are in a pretty good financial situation when it comes to taking care of the newborn. In addition to the basic pay structure, some companies offer optional health and post-natal care.

3.4. Returning to work after maternity leave

Employers must give employees their old jobs back when they come back from maternity leave. This helps make sure that employees don’t get treated badly or unfairly because they took maternity leave.

3.5. Protection against dismissal during pregnancy

It’s not allowed for employers to fire someone just because they’re pregnant. This rule makes sure everyone is treated fairly and keeps their job safe. This kind of protection helps create a workplace that supports and includes everyone.

4. Paternity Leave

A paternity leave is a period off of work granted to fathers around the birth of their child. This leave enables fathers to stand by their partners and also get more time with newborns.

4.1. Current provisions for paternity leave in Malaysia

There is no requirement in Malaysian law for a father to be entitled to paternity leave. However, some employers offer paternity leave as a way of supporting their male colleagues.

4.2. Comparison with paternity leave policies in other countries

Countries like Norway and Sweden have paternity leave policies in place. For instance, Sweden offers 90 days of paid leave to both parents. 

4.3. Employer-provided paternity leave benefits

A few of the more progressive companies in Malaysia do provide paternity leave, recognising that sharing parental responsibilities is key to reducing gender disparities in caregiving. If you are fortunate enough to have generous employers, these may extend from a couple of days to several weeks.

4.4. Advocating for increased paternity leave entitlements

An increasingly popular call today is for statutory paternity leave in Malaysia to protect fathers and support family institutions. Additionally, paternity leave entitlements can result in numerous positive effects for children, more cohesive family ties, and a fairer division of childcare responsibilities.

5. Compassionate and Bereavement Leave

This type of leave enables individuals to grieve the loss of a loved one and other personal matters. 

5.1. Definition and purpose of compassionate and bereavement leave

Bereavement leave allows for employees to manage the death of an immediate family member. You need time off to grieve emotionally and work on the funeral arrangements and other responsibilities.

5.2. Common practices and entitlements in Malaysia

Paid compassionate leave (1-5 days) is offered by most but not mandatory. In almost all cases, the company’s HR policies will define the duration and terms of this type of leave.

5.3. Eligibility and notification requirements

All immediate family deaths are covered under this provision. In most cases, employees need to tell their employer soon and may have to provide a bereavement notice.

5.4. Employer discretion and additional support for employees

Employers can also consider providing more time off or support services such as counselling for bereavement to employees who are grieving. Providing extra support shows compassion, and it helps address their loss better.

6. Unpaid Leave

Even if you are not getting paid, taking a leave of absence can be critical for juggling long-term obligations or emergencies. Unpaid leave is the time off of work without pay for personal or professional reasons. 

6.1. Definition and types of unpaid leave

Unpaid leave includes a number of types that enable employees to deal with major life events or other issues without being paid their full salary.

Sabbatical or career break

This type of unpaid leave is an extended period of absence from work in order to pursue personal interests, travel, volunteer, and other reasons. It is usually given to long-time employees as a thank-you for their time served.

Extended medical leave

This provision deals with employees who have been on sick leave has extended medical leave requirements for a chronic illness or long-term disability. This leave is meant to allow them time off so that they can tend to their health with the stress of not rushing back to work too soon.

Unpaid parental leave

It allows parents to be with their children, particularly during the early years. Unpaid leave of this kind is vital for parents who have run out of paid leave but still require time off to help look after their children.

6.2. Requesting and negotiating unpaid leave with employers

Unpaid time off is an option for employees. They should talk their needs through with employers, preferably giving plenty of notice and a reason. These conversations need to be conducted maturely, emphasising the cause of leave.

6.3. Impact on employment benefits and seniority

Unpaid leave can have an impact on benefits and seniority. This is particularly important for employees to realise before they make a decision. For instance, benefits like health insurance or retirement contributions are typically put on hold during unpaid leave.

6.4. Alternatives to unpaid leave

Options include taking accrued annual leave or negotiating flexible arrangements around personal needs to avoid financial loss. Employees can discuss the various possibilities with their bosses to determine a suitable arrangement for all.

7. Public Holidays

Public holidays in Malaysia offer workers much anticipated time off for cultural festivities with remunerated leave. Let’s get into the labour law for public holiday. Malaysia observes eleven public holidays annually, with supplementary celebrations distinct to individual states. These include occasions like Hari Raya, Chinese New Year, and Deepavali.

Individuals are eligible for paid leave on public holidays. If duty is required on such a day, remuneration must surpass standard rates, or a substitute holiday should be granted. Persons labouring on public holidays warrant additional pay, commonly duplicating regular remuneration. This compensation ensures fair reimbursement for working on times typically reserved for relaxation and festivity.

8. Leave Application and Management

Leave management is of utmost importance to maintain productivity.

8.1. Company policies and procedures for requesting leave

Employees must know the leave policies of their respective organisations and should stick to procedures for taking leave from work. This means that most of them have to apply for time off and get a supervisor’s agreement.

8.2. Communicating and coordinating with team members

Good communication and coordination enable team members to cover for one another if someone is away. Planning your time off in advance and working with colleagues ensures that work runs properly without any hitches.

8.3. Ensuring adequate coverage and handover during leave

Formal handover protocols keep efficacy and continuity when an employee is on leave. Employees should be clear in their instructions and provide updates to those who are picking up their work.

8.4. Maintaining work-life balance and avoiding leave abuse

Employers need to foster work-life balance but also track leave usage to detect when employees may be taking more than they should. Ensuring that they use their leave and holding them accountable for misuse simply results in a better, fairer work environment where everyone can be more productive.

9. Legal Rights and Recourse

  • Employers must follow the Employment Act 1955, providing mandatory leave benefits.
  • Employees can complain about violations to the labour department or ask advice from their trade union. 
  • Labour unions are very active in looking out for the interests of workers, and leave is obviously a topic they focus on. 
  • Where disputes are particularly serious, seeking legal advice and representation can assist employees in understanding their rights as well as in navigating the legal process.

10. Best Practices for Employers

By following the best practices for leaves, one can increase employee satisfaction and boost organisational productivity. Let’s take a look at them –

  • There should be a detailed description of all types of leave.
  • Clear communication of leave entitlements and procedures allows employees to be aware of their rights and responsibilities.
  • Promoting a good work-life balance means that you should encourage your employees to take the leave entitled to and also support adaptive working arrangements.
  • Employers should listen to special circumstances and leave requests.
  • HR needs to review leave policies on a periodic basis and comply with changes in the law.

Conclusion

Leave entitlements play a vital role in Malaysia, which is significant for both employers and employees. Employers can enhance employee satisfaction with a fair leave policy. Meanwhile, employees can use paid and unpaid leave from work to rest or attend to personal matters. 

FAQs on Paid and Unpaid Leave in Malaysia

Q1: How many days of annual leave can I get?

A1: It will depend on your years of service in the organisation. 

Q2: How can I ask for unpaid leave? 

A2: Sit down with your HR or supervisor and politely explain why you need unpaid leave. Try to inform about the unpaid leave well in advance so that the employer can find ways to manage work responsibilities in your absence.

Q3: Can I carry over my unused leave for next year? 

A3: It will depend on your company policy. 

Q4: Is paternity leave compulsory in Malaysia? 

A4: No, this type of leave is not compulsory in Malaysia. 

Q5: Do I need to submit a medical certificate to get sick leave? 

A5: You usually need to submit a medical certificate while requesting sick leave. 

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