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Employment Act 1955 - Annual Leave

Tue, 24 Apr 2007 03:12:17 PM  (Last updated: Tue, 24 Apr 2007 05:41:09 PM)

I got a few question to you and I hope u can answer all the entire question.

Actually my company was non-unionized company,

Q1: Are Employment Act 1955 was applicable in my company?

Q2: In my understanding, staffs that are salary below RM1500 will cover under Employment Act 1955. However, how about to the staff who are salaries above RM1500? I thought they were not cover under the Employment Act 1955. If not, what acts apply for them? Where can they refer with if they got a problem regarding their

In Employment Act 1955, 60E(2)(2A) state that the annual leave of 12month services can carry forward to the following year of 12months. If not used the leave until to the second of 12month, company shall pay in lieu provide with employee agreed.

Q3: What happen when employer do not want to pay (include in Group HR Manual) and what happen to the leave?

Q4: Employment Act 1955 60 E(2) allows 12 months carry forward but in our company, we can only carry forward half of the entitlement, how can it apply?

Q5: For an example one staff entitle for 23days a year, but in the following year, his/her balance of leave was 17days more. Therefore, only half of their leave can carry forward (that's mean only 11.5days) and another 5.5days was automatically forfeited. In this case, Does Company allow to forefeit leave? Which Law apply?

Q6: Frozen Leave is it applicable and where it is state and how many maximum days can we put into the frozen?

KL Siew
Tue, 24 Apr 2007 05:41:09 PM

1) Yes it is.

2) There are two types of employees: manual and non-manual. For manual workers such as labourers, machine operators and all those doing manual work, they are covered irrespective of the amount wages. For those non-manual employees like executives, clerks and so on, their terms and conditions are usually stated in their employment contract. If the employer fails to fulfill the contract, the employee can still complain to the Labour Office under Section 69B if his salary is not more than RM5k. The Industrial Relations Department is also the place where they can seek redress.

3) I think you are actually referring to Section 60E(2), (2A) talks about different matter. Actually it is like this, if the employer cannot let you take leave because of shortage of hands and you agree in writing not to take leave then the employer must pay you wages in lieu. If you are not paid you can complain to the Labour Department.

4) Section 60E(2) actually allows an employee 12 months to take his leave. Sometimes this Section causes quite a lot confusion to both employers and employees. I hope I can make clearer with an example: For instance an employee worked for a year from 1/1/2006 to 31/12/2006. For that 12 months of continuous service he earned 8 days annual leave. He has a period of 12 months i.e. from 1/1/2007 to 31/12/2007 to take the leave. If he fails to take all the leave, the number of days not take by 31/12/2007 will be forfeited unless the employer allows him to carry forward the balance to 2008.

5) As in 4) above from 1/1/2006 to 31/12/2006 that employee earned 23 days leave. The 23 days can be taken during the 12 months after 31/12/2006 i.e. from 1/1/2007 to 31/12/2007. If he fails to take all the leave by 31/13/2007 the number of days of leave not taken will then be forfeited unless the employer allows him to carry forward to 2008. As I have said earlier, this annual leave law is quite confusing. I suggest you visit the Labour Department to gain a better understanding of it.

6) Frozen leave is something which I don't know. I have not come across this one.

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