Understanding Public Holidays and Replacement Leave in Malaysia

Understanding Public Holidays and Replacement Leave in Malaysia

Public holidays in Malaysia are governed by the Employment Act 1955 and the Holidays Act 1951. The Employment Act outlines mandatory public holidays that employers must observe, while the Holidays Act provides the framework for the declaration of additional holidays by the federal and state governments.

In 2024, a unique situation arises where two public holidays, Hari Malaysia and Maulidur Rasul, fall on the same day, September 16. This raises an important question: Are employers required to provide replacement leave for this double public holiday?

Mandatory Public Holidays Under Section 60D of the Employment Act 1955

Section 60D of the Employment Act 1955 mandates that every employee is entitled to a paid holiday at their ordinary rate of pay on eleven gazetted public holidays, five of which are compulsory:

1. National Day
2. Birthday of the Yang di-Pertuan Agong
3. Birthday of the Ruler or Yang di-Pertua Negeri
4. Workers’ Day
5. Malaysia Day

Additionally, employees are entitled to any day appointed as a public holiday for that particular year under Section 8 of the Holidays Act 1951.

Declaration of Public Holidays Under the Holidays Act 1951

The Holidays Act 1951, particularly Sections 8 and 9, allows the federal and state governments to declare additional public holidays:

• Section 8: The Minister may appoint special days to be observed as bank or public holidays in Peninsular Malaysia or the Federal Territory.
  
  
• Section 9: The State Authority may appoint state public holidays.

Double Public Holidays: Hari Malaysia and Maulidur Rasul 2024

The media statement from the Ministry of Human Resources in Malaysia clarifies the public holiday situation on September 16, 2024, when both Malaysia Day and Maulidur Rasul fall on the same day. Here’s a summary of the statement:

1. Mandatory Holiday on September 16, 2024:
   
   • September 16, 2024, is declared a public holiday due to Malaysia Day. This holiday must be granted to employees and cannot be substituted with another day.
   • Maulidur Rasul is considered an optional public holiday. Employers in the private sector that choose to recognize Maulidur Rasul as a public holiday should provide a replacement holiday on Tuesday, September 17, 2024, as per Section 60D(1) of the Employment Act 1955.
     
     
2. Alternative Arrangements:
   
   • Employers, with the consent of employees, may opt to replace the Maulidur Rasul holiday on a different day (other than September 17) as allowed under Section 60D(1A) of the Employment Act 1955.
     

This statement provides clear guidance for employers on how to manage the overlapping public holidays, ensuring compliance with the Employment Act and accommodating both mandatory and optional holidays.

Employers are encouraged to communicate clearly with employees regarding their holiday policies and any changes to scheduled holidays.

Frequently Asked Questions (FAQ)

1. Can a company provide replacement annual leave instead of substituting a public holiday for another day if employees are required to work on public holidays observed by the company?

• Employees who work on public holidays, in addition to receiving holiday pay, must be paid two days’ wages at their ordinary rate of pay as specified in Sections 60D(3) and 60D(4).
  
  
• For employees not covered by Sections 60D(3) and 60D(4), employers can offer annual leave replacement or make other arrangements agreed upon with the employees.

2. If a company observes all public holidays as stated in its policy/employment contract, can it choose to not observe public holidays declared under Section 9?

• If the company’s policy or employment contract specifies that all public holidays will be observed, then the company must observe all public holidays, including those declared under Section 9.

3. Do companies that do not observe all public holidays as per their policy/employment contract need to observe additional holidays declared under Sections 8 and 9?

• Section 8 (Federal Government declared holidays) – Yes
• Section 9 (State Government declared holidays) – No

4. Are companies that do not observe all public holidays required to publish the list of public holidays they observe?

• Yes, Section 60D(1A) requires employers to prominently display a notice specifying the remaining six gazetted public holidays at the place of employment before the beginning of each calendar year.

5. Can a company cap the wages at RM 4,000 to calculate pay for work done on public holidays?

• Employers can limit the wages to RM 4,000 when calculating pay for work done on public holidays for employees not covered under Sections 60D(3) and 60D(4). However, for those employees covered under these sections, the wages cannot be capped.

Suggested Approach for Managing Public Holidays

1. Establish a Public Holiday Policy: Companies should have a clear policy on public holidays, including handling double public holidays.
   
   
2. Standard Approach for Declared Holidays: Companies that do not observe all public holidays can consider granting another day as a paid public holiday in substitution for any holiday declared by the federal or state government not in the annual public holiday calendar.
   
   
3. Guidelines for Business Trips: Establish guidelines for employees on business trips during public holidays or those stationed in another state.

Conclusion

Employers must ensure compliance with the Employment Act 1955 and the Holidays Act 1951 when managing public holidays. For the double public holiday on September 16, 2024, it is mandatory to provide a substitution holiday.

Establishing clear policies and maintaining open communication with employees will help manage public holidays effectively and ensure legal compliance.

This approach not only adheres to legal requirements but also fosters a positive work environment by respecting employees’ entitlement to public holidays.

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