Types of Leave in Malaysia
In Malaysia, employees are entitled to a range of leave policies designed to support their well-being and work-life balance. These policies address various needs and circumstances that may arise during an employee’s tenure. In this post, we will provide a detailed overview of the various types of leave in Malaysia, distinguishing between mandatory and optional categories.
By gaining this insight, not only can companies ensure that their workplace policies align with legal requirements, but we also aspire to provide inspiration for enhancing working conditions within the company through the consideration of optional leave benefits.
Now, let’s explore the mandatory categories of leave in Malaysia.
Mandatory Types of Leave
The mandatory leave categories mentioned below are specified in the Employment Act 1955, and employers are obligated to adhere to these provisions to avoid potential legal consequences.
1. Annual Leave
Annual leave, essential for employees’ mental wellness and preventing burnout, provides paid time off from work. The legal entitlement to annual leave in Malaysia is as follows:
- 8 days per year for employees with 1-2 years of service,
- 12 days per year for employees with 2-5 years of service,
- 16 days per year for employees employed for longer than 5 years.
It’s important to note that these figures represent the minimum legal requirements, and employers have the option to provide more annual leave days if they choose to do so. Furthermore, employees who have not completed a full year of service with the company can still qualify for paid annual leave. In such cases, the annual leave entitlement may be prorated based on the number of months worked. This calculation can be achieved by dividing the total annual leave entitlement by 12 months and then multiplying that figure by the number of months served.
2. Sick Leave
Sick leave is intended to provide employees with the opportunity to recover from illness or injury while preventing the spread of infectious diseases in the workplace. The legal entitlement to paid sick leave under the Employment Act 1955 is as follows:
- 14 days per year for employees with 1-2 years of service,
- 18 days per year for employees with 2-5 years of service,
- 22 days per year for employees employed for over 5 years.
If an employee takes sick leave without a medical certificate or fails to inform the employer within 48 hours of starting their sick leave, it will be regarded as an unauthorized absence without a valid reason for the days they were on sick leave.
3. Hospitalization Leave
In addition to sick leave, employees may be entitled to 60 days of hospitalization leave per year, which is separate from sick leave and requires certification by a doctor. Hospitalization leave is meant to include the time length that a hospital doctor considers that an employee needs hospital care. These are some situations that cover hospitalization leave:-
- The employee is admitted to a hospital or undergoes outpatient surgery.
- The employee is not hospitalized but is medically advised to observe bed rest, such as in cases of pregnancy-related complications.
- The employee requires rest or continued medical treatment for their condition even after being discharged from the hospital to aid in their recovery.
4. Maternity Leave
Maternity leave is granted to new mothers to aid their recovery from childbirth and focus on caring for their newborns. In Malaysia, the legal entitlement to maternity leave is 98 days.
A female employee is eligible to receive maternity allowance from her employer if she has:
- Been employed by the same employer at any point within the four months leading up to her delivery date.
- Accumulated a total of at least 90 days of employment within the nine months preceding her delivery date.
Employers are prohibited from terminating pregnant employees due to illness related to pregnancy, except under specific circumstances like misconduct, willful contract breach, or when the employer’s business is closing.
5. Paternity Leave
Married male employees have the right to take paid paternity leave for a continuous period of 7 days for each child’s birth. However, this entitlement is limited to 5 births, regardless of the number of spouses involved.
To be eligible for paternity leave, male employees must meet certain criteria, including:
- Being employed with the same employer for a minimum of 12 months immediately before the leave commencement.
- Notifying the employer about their spouse’s pregnancy at least 30 days before the expected delivery date or as soon as possible after the child’s birth.
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Optional Types of Leave
Employers have the discretion to provide or not provide these leave options, but as you explore the list, you’ll realize why numerous companies choose to extend these benefits as part of their commitment to employee well-being and satisfaction.
6. Compassionate Leave
Compassionate leave is granted to employees who experience the loss of a close family member during their employment. It allows them to take paid time off to grieve and cope with their loss, promoting their emotional well-being.
While it is not a mandatory requirement for Malaysian employers to offer compassionate leave to their employees, numerous companies extend offers of two to five days of paid compassionate leave.
7. Marriage Leave
Marriage leave provides employees with paid time off to celebrate their wedding day or the weddings of close family members. The number of days granted as marriage leave can vary depending on the company’s policy.
8. Hajj Leave
For Muslim employees planning to undertake the pilgrimage to Mecca (Hajj), some companies offer special leave. Given that Malaysia has a predominantly Muslim population, this offering can be particularly appealing and accommodating for employees.
9. Emergency Leave
Normally, an application for annual leave is required several days in advance to enable work planning and approvals. However, if this is not possible, emergency leave is meant for employees to take a personal absence from work if they need to handle any private affairs on short notice. This can be applicable to a variety of scenarios, including caring for sick family members, meeting with a minor accident, or any other unforeseen circumstance that will likely result in an absence from work. Typically, emergency leaves are deducted from the employee’s annual leave allocation.
10. Replacement Leave
When employees are required to work on rest days or public holidays, employers are obliged to either pay the overtime rate or grant replacement leave.
Replacement leave is frequently offered to employees who do not meet the eligibility criteria for overtime pay, particularly those earning above RM4,000 per month as defined by the Employment Act 1955. This helps ensure that employees are compensated fairly for their time and effort.
11. Unpaid Leave
Unpaid leave is a flexible option for employees who need time off for personal reasons but have exhausted their paid leave entitlements. The terms and conditions for unpaid leave vary between employers, and employees should discuss this option with their HR department when needed.
Simplify Leave Management with CentralHR
When it comes to overseeing your company’s leave policies, CentralHR offers a hassle-free and user-friendly solution to kickstart your process. CentralHR’s online leave management system allows employees to request leave from anywhere, and managers can effortlessly approve these requests.
