Annual Leave: Know Your Entitlement under Malaysia Labour Law

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How many days of annual leave are you entitled to? Are they expiring upon a certain date? How are they calculated? – if you don’t have a solid answer to any of the above questions, read on to find out your entitlement of annual leave as an employee in Malaysia!

The amendment of Malaysia’s minimum wage was gazetted and enforced from the 1st of May 2022 onwards, whereby the minimum wage was adjusted to RM1,500. Following the amendment, perhaps it is a good time to revise your employee’s entitlement under Malaysia’s Labour Law.

Malaysia’s Labour law

The Employment Act of 1995 governs the terms and conditions in Malaysia’s employment. Although the amendment bill dated 2021 has passed in the senate, many of the key amendments have yet to be coming into force. So here’s a list of things you should know about your annual leave entitlement under current Malaysia’s Labour Law.

Which to Follow: Labour Law or Employment Contract?

The employment legislation in Malaysia provides several types of paid leave entitlement to employees. According to the Employment (Amendment) Bill 2021, you are considered as an employee if:

  • Your working hour and content are subject to another party’s control.
  • You are working with tools, materials or equipment supplied by another party.
  • You contribute to an integral part and perform solely for the benefit of another party’s business.
  • You are paid for completed work at certain intervals and the payment is the main source of your income.

However, only manual and non-manual workers with salaries not exceeding the minimum wage are protected by the law. Employees whose income exceeds the figure would rely exclusively on the terms of their employment agreements.

Therefore, it is critical to know the regulations and leave entitlement in Malaysia, in order to have a better understanding of your rights before signing any employment contract.

Annual Leave Entitlement in Malaysia

If you are employed in Malaysia, you are entitled to paid annual leave according to the period of employment as below:

  • 1 to 2 years of employment = 8 days per annum
  • 2 to 5 years of employment = 12 days per annum
  • More than 5 years of employment = 16 days per annum

FAQ Regarding Annual Leave Entitlement in Malaysia

Q: What if I leave the company within a year?

You have worked for the same employer for less than a year – yes, you are entitled to SOME of your annual leaves.

Your annual leave will be prorated – in simple terms, if you have worked for 6 months, you are entitled of 4 days of paid annual leave; any fraction of a day less than a half-day will be disregarded.

Q: What if I am sick on the day that I applied for annual leave?

If you are sick on the day you have applied for paid leave, you should be granted sick leave instead with a supported document if the company deems it necessary.

This is due to your condition or reason for leave overlaps with other paid leave nature, such as public holidays, sick leave, or maternity leave.

Q: Can Malaysian company force me to take annual leave?

Annual leave is intended for personal reasons, such as traveling and leisure activities. Many associated annual leave with enjoyment and a relaxing opportunity – indeed, it should not be forced on anyone. In fact, it is illegal to make employees take annual leave when they do not want to!

Q: Can my boss or HR reject my leave application?

Although paid annual leave is designated for your personal usage, there are some cases where you are not eligible to simply take your day off. For instance:

  • Absent from work without permission nor reasonable excuse for more than 10% of working time.
  • Leave application did not comply with company policy.
  • Insufficient notice was given, where the period of time may vary depending on company policy.
  • Insufficient manpower to maintain essential workflow.
  • The time-sensitive project was unfinished.

Q: How to apply for annual leave?

The old-fashioned way of doing so would be drafting a leave request email to your company’s human resource department. Some may require filling up a form to provide the desired date and duration (half-day or one day), reason of application, and attachment if any. The rules and procedures really depend on the company’s policy and most likely some would only find out on the day of application.

Nowadays, companies often opt for a more effective and easy way of managing leave applications. A number of HR software, online portals, and mobile applications are adapted to replace the ancient email method (and of course the paper-and-pen). These inventions make things easier for both the company and the employees!

Q: How do I know how many paid annual leave I have left?

Lost count of your remaining amount of paid annual leave? You are definitely not the only one. The phenomenon of “clearing annual leave” is not a stranger in any company and most of the time it doesn’t occur only to the workaholics! Most of the employees do not have a clear idea of how many annual leave they currently have, especially those who have worked in the same company for years.

Besides checking with the HR, the use of software and mobile applications would ease you from the procedures – it only takes a minute to show you the exact number. 

GreatDay HR: The All-in-One HRIS Software to Manage Every HR Task

GreatDay HR is designed to provide a single, streamlined, automated solution that helps businesses manage all aspects of employee lifecycle effectively.

Our software provides you support for the day-to-day HR tasks, ranging from payroll and tax calculations, to attendance records, leave requests, and reimbursements.

With GreatDayHR’s built-in functions, employee’s leave application can be quick and straightforward. Aside from paid annual leave, the company may pre-set leave options that are offered to the employees. The remaining day of any leave is also shown on the application where viewing is available at any time.

To request for annual leave, employees could choose from the list of leave options and get it submitted within a couple of minutes. Meanwhile, any request is sent to the respective supervisor for approval automatically within the app!

How to apply for e-leave on GreatDay HR?

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Tags : #AnnualLeave #MalaysiaLabourLaw

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