Malaysia employers should not force employees to take annual or unpaid leave for extended Lunar New Year closures: KESUMA

"KESUMA would like to emphasise that employees have the right to decide when to apply for annual leave, and employers cannot force employees to take annual leave or leave without pay to reduce business costs,"” the ministry shared.

Malaysia’s Ministry of Human Resources (KESUMA) has advised employees to report any deductions in annual leave entitlement or salaries, due to extended company closures beyond public holidays, to the nearest Labour Office under Section 69 of the Employment Act 1955. 

In a statement on Facebook, KESUMA reminded employers that they should not force employees to take annual or unpaid leave if the business remains closed beyond the gazetted Chinese New Year public holidays on 29 and 30 January 2025. The ministry said it has received complaints from employees about certain employers enforcing such leave policies before and after the holidays. 

"KESUMA would like to emphasise that employees have the right to decide when to apply for annual leave, and employers cannot force employees to take annual leave or leave without pay to reduce business costs. 

"This is because annual leave and leave without pay must be granted at the request of the employee himself."

Employees who face any violations of their leave entitlements or salary deductions are thus encouraged to report the matter accordingly.  

READ MORE: Employee entitlements: What to do if a public holiday in Malaysia falls on a rest or non-working day