Can Your Boss Force You to Use Annual Leave in Malaysia?
by Ricebowl Team
Oct 29, 2026
发布于 11:35 AM
Your boss tells everyone to take annual leave because the company will close for a few extra days after a public holiday. Or HR says the business is quiet, so staff must use up their leave balance. Is this allowed in Malaysia?
In general, employers should not force employees to take annual leave or unpaid leave simply to reduce business costs. Malaysia’s Human Resources Ministry has said annual and unpaid leave should be taken at the employee’s request and discretion, and employees who face unfair leave or salary deductions can report the matter to the Labour Office.
However, leave arrangements can depend on the employment contract, company policy and the circumstances. This guide explains what employees should check, whether they are new to work or have been with the same employer for years.
In brief: Your employer should not simply deduct your annual leave or place you on unpaid leave because the business is closed or work is slow. Ask for the instruction and reason in writing, check your contract and leave balance, and contact the relevant Labour Department if the issue is not resolved.
Can Your Boss Ask You to Take Annual Leave Without Your Consent?
The Human Resources Ministry (KESUMA) has stated that employers cannot force employees to use annual leave or unpaid leave to cut business costs. The reminder followed complaints about businesses extending their closures beyond gazetted public holidays. The ministry advised employees who face deductions in annual leave or salary to report the matter to the nearest Labour Office.
This does not mean employees can take annual leave whenever they want without following the company’s leave application process. Employers can manage leave requests and staffing needs. The important difference is between managing a requested leave arrangement and making employees use up their leave balance, or take unpaid leave, to absorb the cost of a business closure.
When Might An Employer Be Pressuring You To Take Annual Leave?
The Company Closes For Extra Days Around A Public Holiday
For example, the office closes for three extra days around Chinese New Year, Hari Raya or Deepavali, and HR tells everyone that those days will be deducted from their annual leave. A company closure does not automatically mean employees have agreed to use annual leave. Ask HR to explain the basis for the deduction and check the written leave policy or employment contract.
There Is Not Enough Work
If business is slow or there are no tasks to assign, the company may ask employees to take leave. That request is not the same as an employee agreeing to take annual leave or unpaid leave. Do not assume that a lack of work automatically allows the employer to deduct your leave or salary.
You Are Told To Take Leave Because You Have A Large Balance
Your employer may remind you to plan and use your leave before the applicable deadline. But if the company wants to schedule leave for you, ask which contract term or written policy applies and whether you have agreed to the arrangement. Keep a copy of any message that says leave will be deducted automatically.
You Are Asked To Take Unpaid Leave
Unpaid leave affects your income, so treat it separately from annual leave. KESUMA has specifically said employees should not be forced to take annual or unpaid leave to reduce business costs. Before agreeing, ask HR to confirm the dates, salary impact and reason in writing.
What If You Are A New Employee Or Still On Probation?
Starting a new job can make it harder to question an instruction from a manager. But being new or on probation does not mean you should ignore your leave terms or assume that every leave deduction is correct.
Check your offer letter, employment contract and staff handbook for the company’s annual leave policy, including how leave is calculated during your first year. Statutory annual leave entitlements under the relevant Malaysian labour laws generally depend on your length of service. If your employment ends before you complete the full year, the law provides for proportional annual leave in the circumstances covered by the applicable legislation. Your contract may offer more favourable leave benefits.
If HR says you have no choice but to take leave, ask politely whether it is a request or a compulsory instruction and how the days will be recorded. Do this in writing so there is a clear record. Avoid simply staying away from work without clarification, as that could create a separate attendance issue.
How Much Annual Leave Are Employees Entitled To In Malaysia?
Under the Employment Act 1955, the minimum annual leave entitlement for employees covered by the Act is based on continuous service with the same employer:
Length of Service
Minimum Annual Leave
Less than 2 years
8 days for every 12 months of continuous service
2 years to less than 5 years
12 days for every 12 months of continuous service
5 years or more
16 days for every 12 months of continuous service
These are statutory minimums, not a limit. Your employer may provide more annual leave under your contract or company policy. The Employment Act 1955 applies in Peninsular Malaysia and the Federal Territory of Labuan; Sabah and Sarawak have their own Labour Ordinances. Employees working in Sabah or Sarawak should check the rules applicable to their location. You can refer to the government’s labour law overview for a general summary.
For a quick check, compare the number of days shown in your HR system with the entitlement in your contract and the applicable law. If the figures do not match, ask HR for the calculation in writing.
What Should You Do If Your Boss Forces You To Take Annual Leave?
Ask HR To Explain The Instruction
Stay professional and ask whether the leave is optional, which policy or contract term applies, and how it will affect your leave balance and salary.
Keep Written Records
Save emails, WhatsApp messages, notices about company closure, leave application records, HR replies and payslips. Take a screenshot of your leave balance before and after the deduction, if possible.
Check Your Contract And Leave Policy
Read the parts about annual leave, company closures, leave approval, carry-forward and unpaid leave. If the policy is unclear, ask HR to point to the exact clause rather than relying only on a verbal explanation.
Raise The Issue Through The Proper Channel
Start with HR or the next level of management if it is safe and appropriate to do so. Explain what happened, which days were deducted and what you are asking the company to correct. Keep the message factual.
Contact The Relevant Labour Department
If the company does not resolve the issue, contact the labour office responsible for your workplace: JTKSM for Peninsular Malaysia and Labuan, JTK Sabah for Sabah, or JTK Sarawak for Sarawak. Explain whether annual leave was deducted without your agreement, whether you were forced to take unpaid leave, or whether your salary was reduced. Bring your employment contract, leave records, payslips and messages. The relevant department can advise on the proper complaint process.
Message You Can Send To HR
Hi HR, I would like to clarify the instruction to use annual leave on [dates]. Could you please confirm whether this leave is optional or compulsory, the policy or contract clause that applies, and how the dates will affect my leave balance and salary? I would appreciate the clarification in writing before the leave record is updated. Thank you.
Can Your Employer Make You Take Annual Leave During Your Notice Period?
If you have resigned, do not assume that your remaining annual leave automatically cancels your notice period. You may be able to request to use accrued leave during the notice period, but you should confirm the arrangement with HR and check your contract and the applicable law. Get written approval and clarification of your final working day. If the company deducts leave without explanation or there is a dispute about payment for unused leave, ask the Labour Department for advice.
FAQs
Can my employer force me to use annual leave during a company shutdown?
The Human Resources Ministry has said employers should not force employees to use annual or unpaid leave to reduce business costs during extended closures. Ask HR to explain the arrangement in writing and contact the relevant Labour Department if your leave balance or pay is unfairly affected.
Can my boss force me to take unpaid leave?
KESUMA has stated that employees should not be forced to take unpaid leave to reduce business costs. Because unpaid leave affects your salary, ask for the dates, reason and salary impact in writing before agreeing.
Do new employees or probationers have annual leave rights?
New employees should check their offer letter, contract and company policy to see how leave is calculated during the first year. Probation does not mean you should automatically accept an unexplained deduction. Statutory annual leave and proportional leave on termination depend on the applicable law and circumstances.
Where can I complain if my annual leave is deducted unfairly?
Contact the labour office responsible for your workplace: JTKSM for Peninsular Malaysia and Labuan, JTK Sabah for Sabah, or JTK Sarawak for Sarawak. Keep your contract, leave balance records, payslips and messages from your employer.
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