Malaysian Labor Law: Understanding Annual Leave, Working Hours, & Public Holidays
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Malaysian Labor Law: Understanding Annual Leave, Working Hours, & Public Holidays

post by AJobThing Team

by AJobThing Team

Feb 27, 2024
at 5:29 PM

 Malaysian Labor Law: Understanding Annual Leave, Working Hours, & Public Holidays

Knowing your rights as an employee in Malaysia is crucial. This article provides a brief overview of key aspects of Malaysian labor law, focusing on annual leave, working hours, and public holidays.

Annual Leave:

  • Entitlement: Under the Employment Act 1955, employees are entitled to paid annual leave based on their service duration:
    • 1-2 years: 8 days per year
    • 2-5 years: 12 days per year
    • 5+ years: 16 days per year
  • Important Points:
    • Annual leave is in addition to rest days and public holidays.
    • Employees who are absent without permission for more than 10% of working days in a year might lose their leave entitlement.
    • Employers cannot force employees to take annual leave in lieu of notice during termination.

Working Hours:

  • Standard: The standard working week in Malaysia is 48 hours. This translates to 8 hours per day for a 6-day workweek.
  • Overtime: Work exceeding the standard hours is considered overtime. Employees are entitled to overtime pay at a rate of at least 1.5 times their hourly rate for the first 3 hours and double their hourly rate thereafter on weekdays.
  • Rest Days: Every employee is entitled to at least one rest day per week, usually on Sundays or a specific day agreed upon by both parties.

Public Holidays:

  • Entitlement: Employees are entitled to 11 gazetted public holidays each year. These holidays are announced by the government and vary slightly depending on the state.
  • Substitute Holidays: If a public holiday falls on a rest day or another public holiday, the next working day becomes a substitute public holiday.
  • Public Holidays on Leave: If a public holiday falls during an employee's sick leave, annual leave, or temporary disability leave, the employee is entitled to another day of paid leave as a substitute.

Additional Resources:

For a more comprehensive understanding of Malaysian labor laws, it's recommended to refer to the official sources:

  • The Ministry of Human Resources 
  • The Employment Act 1955

Remember, this article provides a general overview and shouldn't be taken as legal advice. If you have specific questions or concerns regarding your employment rights, it's advisable to consult with a qualified legal professional or the Ministry of Human Resources.

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FAQs on Malaysian Labor Law: Annual Leave, Working Hours & Public Holidays

  • 1. How many days of annual leave am I eligible for after working for 3 years?
    - Based on your service duration, you would be entitled to 12 days of annual leave.
  • 2. Can my employer force me to take annual leave in lieu of notice during termination?
    - No, Malaysian law prohibits employers from forcing employees to take annual leave in place of notice during termination.
  • 3. What happens if a public holiday falls during my sick leave?
    - If a public holiday coincides with your sick leave, you are entitled to an additional day of paid leave as a substitute.
  • 4. What are the standard working hours in Malaysia per day?
    - The standard working day in Malaysia is 8 hours, translating to a 48-hour workweek based on a 6-day schedule.
  • 5. What is the overtime pay rate for weekends?
    - Overtime pay rates are the same for weekdays and weekends. You are entitled to:
         # 1.5 times your hourly rate for the first 3 hours.
         # Double your hourly rate for any subsequent overtime hours.