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 Section 60F of the Employment Act 1955, employees are entitled to paid sick leave after being examined by a doctor, and the entitlement grows with length of service. It applies to every employee under a contract of service regardless of wage level. Geographically, the Act covers Peninsular Malaysia and the Federal Territory of Labuan only; Sabah and Sarawak have their own labour legislation, so employers there should check the local rules separately. For employees who do not need hospitalization, the minimum entitlement in each calendar year is:
- Employees with less than 2 years of service: 14 days per year
- Employees with 2 years or more but less than 5 years of service: 18 days per year
- Employees with 5 years or more of service: 22 days per year
The employer must pay the employee's ordinary rate of pay for every sick day, and a monthly-paid employee is treated as paid if the monthly wage is given in full without deduction for the sick days (Section 60F(3)). These are minimums 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?
Yes, but within limits set by Section 60F(1). Paid sick leave is tied to an examination, at the employer's expense, by a registered medical practitioner duly appointed by the employer. If the employer has not appointed one, or the appointed practitioner cannot be reached within a reasonable time or distance given the nature of the illness, the employee may be examined by any other registered medical practitioner or by a medical officer. A dental surgeon can also certify sick leave (Section 60F(1A)); that leave counts within the same entitlement, not on top of it.
In practice, you can name a clinic or panel doctor in your policy, but you cannot insist on it when it is not available in time. Two more rules belong in your policy:
- 48-hour notice: the employee must inform, or try to inform, you within 48 hours of the sick leave starting. If not, the days are treated as absence without permission and without reasonable excuse, even if a doctor certified the leave (Section 60F(2)).
- No paid sick leave during certain payments: an employee is not entitled to paid sick leave while receiving maternity allowance, workmen's compensation for disablement or SOCSO temporary disablement payments (Section 60F(4)).
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?
Employees who are certified by a registered medical practitioner or medical officer as needing hospitalization are entitled to up to 60 days of paid sick leave in aggregate in each calendar year (Section 60F(1)(bb)). The Labour Department of Peninsular Malaysia (JTKSM) states that this 60 days does not include ordinary sick leave (JTKSM infographic 2025). An employee certified as ill enough to need hospitalization but who is not admitted for any reason is still treated as hospitalized for this purpose.
Maternity leave is a separate entitlement and should not be confused with sick leave. Under Section 60F(4), paid sick leave is not payable for any period in which the employee is entitled to maternity allowance under Part IX of the Act.
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. Under Section 60F(2), sick leave that is not certified as required, or that is certified but not notified to the employer within 48 hours, is treated as absence without permission and without reasonable excuse. Where you suspect misconduct such as a false medical certificate, Section 14 allows the employer to dismiss without notice, downgrade the employee or impose a lesser punishment, but only after due inquiry. Run the inquiry properly and record it before acting.
Best Practices for Managing Sick Leave
Implementing the following best practices can help ensure a smooth and compliant sick leave management process:
- 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.
- Maintain accurate records: Keep detailed records of employees' sick leave usage, including dates, durations, and supporting medical documentation.
- Encourage open communication: Foster an environment where employees feel comfortable discussing their health concerns without fear of repercussions.
- Consider flexible work arrangements: Explore options like remote work or adjusted schedules to accommodate employees recovering from illness or managing chronic conditions.
- Promote a culture of wellness: Implement wellness programs and initiatives that prioritize employee well-being and preventive healthcare.
- 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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More Resources for You
- A Comprehensive Guide to Annual Leave in Malaysia
- Comprehensive Guide to Maternity and Paternity Leave in Malaysia
- Understanding Working Hours in Malaysia: Key Regulations and Practices
- A Comprehensive Guide to Overtime Pay in Malaysia
- All-in-One HRMS: Unveiling Malaysia's Top 5 HR system Choices for SMEs
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