Sick Leave in Malaysia: What Employers Need to Know
- Harshiney
- 1 day ago
- 5 min read
Sick leave is more than just a legal requirement — it’s a way to show your team that their health matters. Whether it’s a short illness or a longer recovery, giving your employees the time and space they need helps keep morale high, productivity steady, and your company compliant with Malaysian labour laws.
Here’s a quick, straightforward guide on how sick leave works in Malaysia—and how you can manage it smoothly.
What is Sick Leave?
Sick leave (or medical leave) is paid time off granted to employees when they’re unable to work due to illness or injury. It’s different from annual leave, and it’s a legal right under the Employment Act 1955. When managed well, sick leave helps reduce long-term absenteeism, boosts employee trust, and ensures your business stays compliant with occupational health and labour laws.
Sick Leave Entitlements in Malaysia
Under the Employment Act 1955, employees are entitled to paid sick leave based on their length of service:
Less than 2 years: 14 days per year
2 to less than 5 years: 18 days per year
5 years and above: 22 days per year
In addition, employees are also entitled to up to 60 days of hospitalisation leave per year, as certified by a registered medical practitioner. This hospitalisation leave is separate from regular sick leave.
Example: If an employee uses 10 days of sick leave, they still have 60 days of hospitalisation leave left.
To qualify for paid sick leave, the employee must:
Be certified as unfit for work by a registered medical practitioner
Notify the employer of the absence within 48 hours
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Are Probationary Employees Entitled to Sick Leave?
Yes. The Employment Act 1955 doesn't make a distinction between probationary and confirmed employees. This means employees on probation are entitled to the same paid medical leave benefits as confirmed staff.
Are Part-Time Employees Entitled to Sick Leave
Dependent. Part-time employees who have entered into a contract of service are entitled to paid sick leave under the Employment Act.
However, this entitlement does not apply to:
Casual employees: Those engaged occasionally or on an irregular basis, as and when needed, and whose working hours in a week do not exceed 30% of a full-time employee’s normal weekly hours.
Home working employees: Those who perform work for an employer within their residence, regardless of occupation.
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Handling Medical Certificates (MCs)
Can Employers Reject a Medical Certificate (MC)?
No, a valid MC issued by a registered medical practitioner must be accepted. However, if you have reasonable grounds to believe the MC is fake, you are allowed to verify its authenticity, for example, by contacting the issuing clinic. If the MC is faked, it can be treated as serious misconduct, and disciplinary action (including termination) may follow.
Is a Medical Certificate (MC) required for a One-Day sick leave?
Yes. Even for a single day, a medical certificate is required to qualify for paid sick leave. Without an MC, the absence can be treated as absence without official leave (AWOL), unpaid leave or annual leave, depending on your internal policy.
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Can Employers require a Medical Certificate (MC) from Panel Clinics?
Yes, you can require employees to visit panel clinics, as long as this is clearly stated in your company policy. This helps ensure consistency and reduces the risk of MC abuse.
However, if an employee has a valid reason, like an emergency or no nearby panel clinic, they should be allowed to use a medical certificate from a non-panel clinic. Ensure your policy includes reasonable exceptions and is communicated clearly.
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Managing Sick Leave Abuse
What are the Common Signs of Sick Leave Abuse?
Look out for patterns such as:
Frequent absences on Mondays, Fridays, or around public holidays
Regular MCs from non-panel clinics (when panel use is required)
Vague or repetitive MCs from the same clinic
Sudden spikes in sick leave right after payday or during peak business periods
If you notice a pattern, don’t jump to conclusions. Start by documenting the absences and having a respectful conversation with the employee. In some cases, it may be a health or personal issue that needs support, not discipline.
If suspicions persist, you may:
Require future MCs to be from panel clinics
Refer the employee to an independent medical evaluation
Conduct a fair investigation before deciding on disciplinary action
Can Employers terminate someone for a fake MC?
Yes — but only with due process. Submitting a fake MC is considered serious misconduct, and termination may be justified if the offence is proven through a proper investigation.
To take disciplinary action:
Verify the MC’s authenticity
Conduct a fair and documented investigation
Follow your company’s disciplinary process
Allow the employee to explain before taking action
For a detailed guide on handling fake MCs, read: Fake Medical Certificates – What Employers Need to Know
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Handling Extended Sick Leave
What happens when an employee exhausts their paid sick leave?
Once an employee has exhausted their paid sick leave, you can consider:
Offering unpaid medical leave
Exploring flexible work options, such as remote work or lighter duties
Evaluating the need for reasonable accommodations depending on the medical condition
Any arrangement should be documented and discussed openly with the employee.
Can Employers fire an employee for long-term sickness?
Yes—but this must be handled with great care. Termination should only be considered after:
All reasonable accommodations have been explored
The employee is unable to return to work after an extended period
A fair, well-documented process has been followed
Always ensure your actions are in line with company policy and Malaysian labour law to avoid claims of unfair dismissal.
Frequently Asked Questions
Can we deduct salary for sick leave without an MC?
Yes. If no MC is provided, you are not legally obligated to grant paid sick leave. The leave may be considered unpaid or unauthorised, depending on your internal policy.
What if someone falls sick during annual leave?
If the employee provides a valid MC, you must treat the sick days as medical leave, not annual leave. This allows them to reclaim their annual leave days, provided they inform you promptly and follow the proper documentation process.
What happens if an employee is sick on a public holiday?
They’re entitled to a replacement public holiday, as long as they provide an MC. The sick day counts toward medical leave, but the lost public holiday can be taken at another time.
Best Practices for Managing Sick Leave
1. Make your policies clear
Ensure employees know how to apply for sick leave, what documents they need, and what to expect.
2. Keep an accurate record
Track sick leave usage, MC submissions, and related communications.
3. Foster a supportive work culture
Encourage employees to speak openly about health issues without fear of repercussions.
4. Offer flexible options
Remote work, adjusted hours, or temporary duties can support recovery.
5. Stay compliant
Keep your policies aligned with the labour law and stay updated on any changes.
Need Help Managing Sick Leave
At Synergy Outsourcing, we make sick leave management stress-free for employers:
✅ Leave tracking and documentation
✅ Policy development and compliance support
✅ Assistance with panel clinic setup
✅ Temporary staffing for coverage
📞 Call us at +6010-277 0718 or 📩 email info@synergy-outsourcing.com
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