As Malaysia’s labour landscape evolves and more organisations emphasise employee well-being, proper understanding of sick-leave rights has become increasingly important. Despite clear statutory provisions under the Employment Act 1955, many uncertainties still persist among employers and employees — particularly regarding the scope of sick leave, hospitalisation leave, medical certificate (MC) requirements, and whether entitlements can be prorated.
This article provides a detailed and updated overview for 2025, reflecting the position under Section 60F of the Employment Act 1955, recent HR best practices, and common issues arising in Malaysian workplaces.
1. Statutory Sick Leave Entitlements (Outpatient)
Section 60F(1) sets out Malaysia’s minimum paid outpatient sick-leave entitlements:
- 14 days per year — employed less than 2 years
- 18 days per year — employed 2 to 5 years
- 22 days per year — employed more than 5 years
These entitlements are annual minimums and apply once an employee is hired under a continuous contract of service.
Important details often overlooked:
- Sick leave counts per calendar year, not per anniversary of employment.
- Sick leave includes common illnesses (flu, fever, injury, etc.) not requiring hospitalisation.
- A valid MC is legally required unless the employer waives this requirement.
- Employers may offer more sick leave than the Act, but cannot offer less.
2. Hospitalisation Leave: Up to 60 Days
In addition to outpatient sick leave, employees are entitled to up to 60 days of hospitalisation leave, provided a registered medical practitioner certifies that hospital-level treatment or supervision is required.
Key points employers often misunderstand:
- Hospitalisation leave is not replaceable with outpatient sick leave.
- It is added on top of the 14/18/22 days.
- A doctor’s certification is required, but actual hospital admission is not always strictly necessary (e.g., certain severe illnesses or injuries requiring hospital-like care).
- Weekends and public holidays during a hospitalisation-certified period may still count towards the hospitalisation leave entitlement.
In total, an employee may receive up to 74–82 days of paid sick + hospitalisation leave, depending on years of service.
3. Can Sick Leave Be Prorated? (The Most Common Misconception)
Under Section 60F, sick leave is expressly defined per calendar year, with no clause allowing prorated calculation based on months worked.
This means:
- Employees hired mid-year are still entitled to the full sick-leave entitlement for that year.
- Employers cannot reduce the entitlement proportionally (e.g., dividing by 12 months).
- Company policies that attempt to prorate MC leave conflict with the Employment Act.
Why the misconception exists
Some companies mirror their annual-leave practice (which can be prorated under Section 60E), leading to confusion. But annual leave and sick leave fall under different legal provisions — one allows prorating, the other does not.
4. Requirements to Qualify for Paid Sick Leave
Employees must:
- Consult a registered medical practitioner (or dentist, in relevant cases).
- Obtain an official medical certificate (MC).
- Notify the employer within 48 hours of the illness or as soon as reasonably possible.
- Submit the MC upon returning to work or within a timeframe set by company policy.
Employers may reject sick leave if:
- No MC is provided.
- Notification was not given within a reasonable time.
- The MC comes from a non-recognised practitioner (e.g., certain traditional healers).
- The leave was abused or falsified.
However, each case must be assessed fairly to avoid wrongful-dismissal or unfair-labour-practice claims.
5. Common Workplace Issues & Clarifications
Sick Leave vs Annual Leave
- Employees cannot be forced to use annual leave when they are medically unfit for work.
Unused Sick Leave
- Sick leave does not accumulate or carry forward to the next year.
MC from Government vs Private Clinics
- Both are valid, as long as the practitioner is registered.
MC Fraud
- Submitting a fake MC is serious misconduct and may lead to disciplinary action — but employers must investigate properly before taking action.
Hospitalisation Without Being Admitted
- Doctors can issue “hospitalisation-required” MCs even without physical admission (e.g., dengue, severe asthma, injuries requiring strict rest).
Conclusion
Sick-leave entitlement in Malaysia is more structured than many realise, but misunderstandings still occur — especially regarding prorating, MC validity, and the interaction between outpatient and hospitalisation leave. Under the Employment Act 1955, statutory sick leave is not prorated, is granted based on length of service, and must be honoured as a full annual entitlement.
A clearer understanding of these rules helps ensure a fair, compliant, and healthier work environment for all.
