Employers Cannot Force Employees to Take Annual Leave or Unpaid Leave – Kesuma

Kesuma, the Department of Labour Malaysia (Jabatan Tenaga Kerja Malaysia), has reminded employers that they are not allowed to force employees to take annual leave or unpaid leave under any circumstances without mutual agreement.

This clarification comes in response to complaints from employees who claimed their employers compelled them to take leave, particularly during periods of reduced business activity or operational downtime.

Under the Employment Act 1955, employees have the right to utilize annual leave, which must be exercised at their discretion, with prior discussion and agreement between both parties. Employers are prohibited from unilaterally deducting annual leave or imposing unpaid leave unless the employee mutually agrees to it.

Kesuma highlighted that forcing employees to take unpaid leave, particularly in situations where the company faces financial difficulties, is a violation of labor laws. Employers are encouraged to explore alternative solutions, such as flexible working arrangements or temporary wage adjustments, with the consent of employees, to address operational challenges.

Employees who face such coercion are advised to report the matter to the nearest Labour Office or lodge a complaint through official channels. Kesuma has assured that strict action, including fines or legal proceedings, will be taken against employers who fail to comply with labor regulations.

This reminder underscores the importance of protecting employee rights and fostering a harmonious working relationship between employers and workers, particularly during challenging times.