Finance & Compliance

The Employer's Guide to Sick Leave Entitlements in Malaysia

Winnie Lu

April 12, 2024

As an employer or HR professional in Malaysia, it's crucial to have a firm grasp of the legal requirements surrounding sick leave entitlements. Striking the right balance between supporting your employees' well-being and maintaining productivity can be a delicate dance.

This comprehensive guide aims to equip you with the knowledge needed to navigate the complexities of sick leave laws in Malaysia, ensuring compliance and fostering a healthy, motivated workforce.

How Many Paid Sick Leaves are Employees Entitled to in Malaysia?


Under the Employment Act 1955, all employees in Malaysia are entitled to paid sick leave after meeting specific employment duration criteria. Let's break down the key requirements:

  • Employees with less than 2 years of service : 14 working days per year
  • Employees with 2 - 5 years of service : 18 working days per year
  • Employees with more than 5 years of service : 22 working days per year

It's worth noting that these are the minimum requirements set by the Employment Act. As an employer, you have the flexibility to offer more generous sick leave policies to attract and retain top talent.

Can I Ask Employees for Medical Certification?


The Employment Act mandates that employees must be examined by a "registered medical practitioner" to qualify for paid sick leave.

However, some employers may only accept medical certificates (MCs) issued by clinics appointed by them or their insurance providers. If an employee submits an MC from a non-approved medical facility, they must provide a valid justification for doing so.

Photo by Edward Jenner

Can Unused Sick Leave be Carried Forward?


The Employment Act doesn’t address if unused sick leaves could be carried forward or not. This decision rests on employer policies and employment contracts. Employers can either permit a reasonable amount of unused sick leave to rollover or adopt a 'use it or lose it' policy where remaining sick days are forfeited. This flexibility allows employers to align sick leave practices with organizational needs while adhering to legal minimums.

What about Hospitalization Leave?


Apart from sick leave, hospitalized employees are entitled to 60 days of paid hospitalization leave in a calendar year. It's important to note that maternity leave and hospitalization leave are separate entitlements and should not be confused with sick leave.

Abuse of Sick Leave and Disciplinary Actions


While sick leave is a crucial employee benefit, it's essential to have measures in place to prevent abuse. The Employment Act allows employers to take disciplinary action against employees who misuse their sick leave entitlements or provide false medical certificates.

Photo by Yan Krukau

Best Practices for Managing Sick Leave


Implementing the following best practices can help ensure a smooth and compliant sick leave management process:

  1. Clearly communicate your sick leave policy: Ensure your employees are aware of their entitlements, eligibility criteria, and the procedures for requesting and reporting sick leave.
  2. Maintain accurate records: Keep detailed records of employees' sick leave usage, including dates, durations, and supporting medical documentation.
  3. Encourage open communication: Foster an environment where employees feel comfortable discussing their health concerns without fear of repercussions.
  4. Consider flexible work arrangements: Explore options like remote work or adjusted schedules to accommodate employees recovering from illness or managing chronic conditions.
  5. Promote a culture of wellness: Implement wellness programs and initiatives that prioritize employee well-being and preventive healthcare.
  6. Stay up-to-date with legal changes: Regularly review and update your sick leave policies to reflect any changes in Malaysian employment laws or regulations.

Conclusion


As an employer or HR professional, understanding and properly implementing sick leave entitlements is not only a legal obligation but also a key factor in fostering a productive, engaged workforce. By adhering to the Employment Act 1955 and adopting best practices, you can create a workplace culture that values employee well-being while maintaining operational efficiency. Remember, a healthy workforce is a valuable asset, and investing in your employees' well-being can yield long-term benefits for your organization.

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