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We in Malaysia are ‘blessed’ with a bounty of public holidays. Depending on the state, organizations can observe anywhere from 21 to 25 days of public holiday per year.

And that’s not counting the holidays that are declared by the federal and state governments, such as the recent holidays for the 2023 state elections. Furthermore, it’s not uncommon for such holidays to be announced at short notice. Such holidays are known as ‘cuti peristiwa’ or ‘occasional holidays’.

As the public holidays in Malaysia can get confusing, we present to you this guide on when and how Malaysian public holidays work.

The Law on Malaysian Public Holidays

Two pieces of legislation affect which public holidays employees may take:

• Employment Act 1955.
• Holidays Act 1951.

Holidays in the Employment Act

Section 60D of the Employment Act 1955 defines which holidays employees are entitled to.

• (1) Every employee shall be entitled to a paid holiday at his ordinary rate of pay on the following days in any one calendar year:
  • (a) on eleven of the gazetted public holidays, five of which shall be—
    • (i) the National Day;
    • (ii) the Birthday of the Yang di-Pertuan Agong;
    • (iii) the Birthday of the Ruler or the Yang di-Pertua Negeri, as the case may be, of the State in which the employee wholly or mainly works under his contract of service, or the Federal Territory Day, if the employee wholly or mainly works in the Federal Territory;
    • (iv) the Workers’ Day; and
    • (v) Malaysia Day; and
  • (b) on any day appointed as a public holiday for that particular year under section 8 of the Holidays Act 1951 [Act 369].

Holidays in the Holidays Act

Sections 8 and 9 of the Holidays Act 1951 define how cuti peristiwa or occasional holidays are declared.

• Section 8:
  • The Minister may, by notification in the Gazette or in such other manner as he thinks fit, appoint, in respect of Peninsular Malaysia, or the Federal Territory or, after consultation with the State Authority, in respect of a State, a day to be observed as a public holiday or a bank holiday in addition to, or in substitution for, any of the days mentioned in the Schedules and thereupon this Act shall, in Peninsular Malaysia, or in the Federal Territory, or in the State in respect of which a day is appointed to be observed as a holiday as aforesaid, be applicable to such day in the same manner as if the said day had been mentioned in the First Schedule or the Second Schedule, as the case may be.

• Section 9:
  • (1) The State Authority may, by notification in the Gazette or in such other manner as it thinks fit, appoint a day to be observed as a State public holiday in any such State, and such day shall, except as hereinafter provided, be observed in such State as a public holiday.
  • (2) The Minister may, by notification in the Gazette, or in such other manner as he thinks fit, appoint a day to be observed as a Federal Territory public holiday in the Federal Territory, and such day shall, except as hereinafter provided, be observed in the Federal Territory as a public holiday.

Which Public Holidays Should the Organization Observe?

This is governed by Section 60D of the Employment Act 1955 as shown above.

As a minimum, companies should observe 11 days of public holidays. The five compulsory holidays include:

• National Day (31 August)
• Birthday of the Yang di-Pertuan Agong (first Monday of June)
• Birthday of the Ruler or the Yang di-Pertua Negeri or the Federal Territory Day (varies by state, 1 February for Federal Territory Day)
• Workers’ Day (1 May)
• Malaysia Day (16 September)

*Dates are as of 2023.

In addition, the company needs to observe six more public holidays chosen by the company. These can be any combination of national and state holidays as defined by the Government.

Despite this, many companies choose to observe all public holidays, as do schools and the Malaysian civil service. This way, it makes administrative matters easier.

Whether the company chooses to observe the minimum amount of public holidays or all holidays, it should be spelled out in the company policy, employee handbook, or employment contract.

What About Declared Holidays?

This is what every employer dreads – holidays declared at short notice by either the Federal or State Governments.

For Malaysia-wide public holidays declared under section 8 of the Holidays Act 1951, it is compulsory for the company to observe it, regardless of their public holiday observance policy. An example of this would be the additional holiday declared by the Government in conjunction with Hari Raya Aidilfitri earlier this year.

As for state holidays declared under section 9:

• Companies that observe the minimum 11 days of public holiday do not need to observe it.
• Companies that observe all public holidays will need to observe it.

An example of a section 9 holiday would be the holidays declared due to the 2023 state elections held in Selangor, Negeri Sembilan, Kedah, Kelantan, and Terengganu.

What If the Employee Can’t Get the Day Off?

In case employees can’t get the day off for compulsory holidays declared on short notice, employers have three options:

• Replace the public holiday on another day as determined by the company.
• Give the employee an additional day of annual leave.
• Pay the employee overtime pay at public holiday rates.

However, for public holidays declared for the purposes of a general or state election, employers must still give employees reasonable time off from work to cast their vote. Otherwise, the employer will be in breach of section 25 of the Election Offences Act 1954.

Manage Leave and Public Holidays with BrioHR

As we can see, public holidays can get messy. Nevertheless, with BrioHR, you can manage public holidays as well as leave and time-off in a simple, automated HR system.

Since BrioHR is cloud-based, we constantly update the system to include the latest public holidays, so you can rest assured that your team is getting their due time-off.

The post The HR Guide to Malaysian Public Holidays appeared first on BrioHR.

Effective compensation and benefits management is a critical aspect of human resources. It plays a pivotal role in attracting, motivating, and retaining talent within an organization. This comprehensive guide will provide HR professionals with insights and strategies to navigate the complexities of compensation and benefits management.

Understanding Compensation

Compensation refers to the combination of wages, salaries, and benefits that an organization offers to its employees in exchange for their work and contributions. It encompasses both monetary and non-monetary rewards and is a fundamental component of the employer-employee relationship. Compensation not only provides employees with financial security but also serves as a tool to recognize and reward their efforts, skills, and accomplishments.

Key Components of Compensation:

• Base salary: The fixed amount of money an employee receives on a regular basis for their role and responsibilities. It forms the foundation of an employee’s compensation package.
• Incentives, commissions, and bonuses: Variable payments tied to individual or group performance. These rewards are designed to motivate employees to achieve specific goals or outcomes.
• Benefits: Non-monetary rewards provided by the organization to enhance the overall well-being of employees. Benefits can include health insurance, leave packages, additional contribution to EPF/CPF etc.
• Perks: Additional offerings that contribute to the overall work experience, such as flexible work arrangements, on-site amenities, and professional development opportunities.

Exploring Employee Benefits

Employee benefits are a vital part of the compensation package and play a crucial role in attracting and retaining employees. These benefits go beyond monetary compensation and contribute to employees’ quality of life, job satisfaction, and overall work-life balance. Here are some common types of employee benefits:

• Health and wellness benefits: These include medical, dental, and vision insurance, as well as wellness programs that encourage employees to maintain a healthy lifestyle.
• Leave and time-off: Leave encompasses annual leave, sick leave, and other types of leave. Providing adequate leave allows employees to rest, recharge, and manage personal commitments.
• Flexible work arrangements: Flexibility in work hours or the option to work remotely can greatly improve employees’ work-life balance and job satisfaction.
• Educational and professional development: Supporting employees’ growth through training programs, workshops, and tuition reimbursement can enhance their skills and contribute to their career advancement.
• Childcare and family benefits: Offering assistance with childcare expenses or parental leave helps employees manage their family responsibilities effectively.
• Commuting benefits and other allowances: Providing allowances or options for commuting expenses, such as parking reimbursement or a transportation allowance can ease the financial burden on employees.

As an HR professional, your role involves designing and managing a compensation and benefits package that aligns with the organization’s goals, values, and industry standards while meeting the diverse needs of employees. A well-crafted compensation strategy not only attracts and retains top talent but also fosters a positive work environment and contributes to the company’s overall success. In the following chapters, we will delve deeper into the strategies and best practices for effective compensation and benefits management.

Designing a Compensation Strategy

Internal Equity vs. External Competitiveness

When creating a compensation strategy, HR professionals must balance the concepts of internal equity and external competitiveness.

• Internal Equity: This principle focuses on ensuring fairness and consistency within the organization. Employees performing similar roles should be compensated fairly, regardless of personal characteristics or background. Internal equity is essential to maintain a harmonious workplace and prevent feelings of inequality among employees.
• External Competitiveness: This aspect revolves around aligning your compensation packages with the external job market. To attract and retain top talent, your organization’s compensation should be competitive with industry norms and other companies in your region or sector.

Job Analysis and Evaluation

Job analysis involves studying and documenting the tasks, responsibilities, skills, and qualifications required for each position within the organization. Job evaluation, on the other hand, is the process of assigning relative values to different jobs based on their complexity, impact, and contribution to the organization.

Methods of Job Evaluation:

• Job ranking: Jobs are ranked in order of importance, with the highest-ranked job receiving the highest compensation.
• Point method: Jobs are assigned points based on various factors like skill requirements, complexity, and responsibility levels.
• Market pricing: Jobs are valued based on market data, ensuring your compensation is competitive.

Market Research and Benchmarking

Conducting market research and benchmarking is crucial to determine how your organization’s compensation offerings compare to industry standards. This involves collecting data on compensation practices from other companies in your industry and geographic region.

Steps for Market Research:

1. Gather data: Collect information on base salaries, bonuses, and benefits offered by similar organizations.
2. Analyze data: Compare the collected data to your current compensation practices to identify gaps and areas for improvement.
3. Adjustment strategies: Decide whether you need to adjust your compensation packages to align with market trends. This could involve salary increases, benefits enhancements, or other adjustments.

Market research provides insights into the current competitive landscape, allowing you to make informed decisions that will attract and retain top talent while keeping your organization’s compensation strategy up to date.

Determining Salary and Monetary Compensation

Base salary forms the foundation of an employee’s compensation package and reflects the value the organization places on the employee’s role and responsibilities. Determining an appropriate base salary involves careful consideration of several factors to ensure fairness, competitiveness, and alignment with both internal and external standards.

Factors Influencing Base Salary

• Job role and responsibilities: The complexity, scope, and level of responsibilities associated with a job play a significant role in determining its base salary. Higher-level positions with more significant impact on the organization often command higher salaries.
• Skill and experience: Employees with specialized skills or extensive experience in their field are often compensated more generously. A candidate’s education, certifications, and years of relevant experience contribute to their market value.
• Market conditions: External market factors, such as industry norms, geographic location, and regional cost of living, influence how much organizations should pay to remain competitive in attracting talent.
• Internal equity: Ensuring that salaries are consistent and fair within the organization is vital for maintaining a harmonious work environment. Employees performing similar roles should receive comparable compensation.
• Performance and contribution: High-performing employees who consistently exceed expectations and contribute to the organization’s success may be eligible for performance-based raises or bonuses.

Pay Grades and Ranges

Organizations often use pay grades and salary ranges to structure their compensation system. Pay grades group similar jobs together based on factors like job level, responsibilities, and required skills. Within each pay grade, a range of salaries is established, with a minimum, midpoint, and maximum value.

Advantages of Pay Grades and Ranges:

• Consistency: Pay grades provide a structured approach to compensation that ensures fairness and equity.
• Flexibility: Salary ranges allow for some variation in compensation while staying within predetermined boundaries.
• Transparency: Clearly defined pay grades and ranges enable employees to understand how their salary was determined and what potential for growth exists.

Salary Structure and Bands

A salary structure is a framework that outlines how various job roles are organized into bands or levels, each with its own salary range. This structure aligns with the organization’s hierarchy and career progression.

Benefits of a Salary Structure:

• Clear progression: Employees can see the path for advancement within the organization, encouraging professional growth.
• Fairness: Transparent salary bands help prevent wage gaps and ensure employees are compensated fairly.
• Attracting talent: A well-defined structure can attract candidates by demonstrating opportunities for career development.

When designing a salary structure, consider factors such as the number of bands, the criteria for moving between bands, and the frequency of salary reviews.

By carefully considering these factors and using tools like pay grades, salary ranges, and structured salary bands, HR professionals can establish a fair and competitive base salary structure that attracts and retains qualified employees while maintaining internal equity. In the next chapter, we will explore the various types of incentive and bonus programs that can further motivate and reward employees for their exceptional performance.

Non-Monetary Rewards

While monetary compensation is a significant factor in attracting and retaining employees, non-monetary rewards play a crucial role in creating a positive and motivating work environment. These rewards focus on enhancing employees’ job satisfaction, engagement, and overall well-being. Here are various non-monetary rewards that HR professionals can implement to create a well-rounded compensation package.

Recognition and Appreciation

Recognition is a powerful tool for boosting employee morale and motivation. Regularly acknowledging employees’ hard work and contributions fosters a culture of appreciation and reinforces positive behaviors.

Ways to Implement Recognition Programs:

• Employee of the month: Highlight outstanding employees and their achievements on a monthly basis.
• Peer recognition: Allow employees to recognize and commend their colleagues for exceptional work.
• Managerial recognition: Encourage managers to provide timely and specific feedback to their team members.

Career Development Opportunities

Investing in employees’ professional growth not only benefits them individually but also contributes to the organization’s success. Providing opportunities for learning and advancement demonstrates a commitment to employee development.

Methods to Offer Career Development:

• Training programs: Offer workshops, seminars, and online courses to enhance employees’ skills and knowledge.
• Mentorship programs: Pair experienced employees with those seeking guidance and career advice.
• Promotion pathways: Clearly define paths for advancement within the organization to give employees a sense of direction.

Work-Life Balance Initiatives

Promoting work-life balance demonstrates that the organization values employees’ personal well-being. Employees who can maintain a healthy balance between work and personal life are often more engaged and productive.

Initiatives to Promote Work-Life Balance:

• Flexible work arrangements: Allow employees to adjust their work hours or work remotely when feasible.
• Leave policies: Offer sufficient paid vacation days and encourage employees to use them for relaxation.
• Wellness programs: Provide resources for physical and mental well-being, such as gym memberships, stress reduction activities, or company-organized sports activities.

Employee Engagement Activities

Engaged employees are more committed to their work and the organization. Engaging activities help foster a sense of belonging and camaraderie among employees.

Engagement Initiatives to Consider:

• Team-building Activities: Organize team outings, workshops, or volunteer events to strengthen team bonds.
• Employee Surveys: Collect feedback through periodic pulse surveys to understand employee needs and preferences.
• Open Communication Channels: Create opportunities for employees to share their ideas and feedback with management.

Personalized Benefits

Recognize that each employee has unique needs and preferences. Offering a degree of personalization in benefits allows employees to choose what matters most to them.

Ways to Implement Personalization:

• Flexible Benefits: Allow employees to choose from a range of benefits that suit their individual circumstances.
• Customized Development Plans: Tailor career development plans based on employees’ aspirations and strengths.

By incorporating these non-monetary rewards into your compensation strategy, you can create a holistic package that addresses both financial and non-financial needs. Remember that an effective compensation package not only attracts talent but also promotes a positive workplace culture and supports employees’ overall well-being.

The post The HR Professional’s Guide to Compensation and Benefits appeared first on BrioHR.

In any workplace, absenteeism can be a significant challenge, affecting productivity, morale, and overall business performance. It is also disruptive, as colleagues can be left to pick up an absent teammate’s workload, often on short notice.

A study conducted in 2017 showed that Malaysian employers lose 67 days a year due to absenteeism, due to part to poor health and stress factors. Another 2017 study, this time conducted in Singapore, indicated that productivity loss due to health-related absenteeism could hit S$3.3 billion by 2030.

Absenteeism refers to the frequent or prolonged absence of employees from work without a valid reason. It can be a result of various factors such as illness, personal problems, lack of job satisfaction, or even low employee engagement.

In this article, we will delve into what absenteeism entails and explore effective strategies that employers can adopt to tackle this issue head-on.

Understanding Absenteeism

Absenteeism can manifest in different forms, including unplanned absences, sick leave, and extended periods of leave without justification. It is crucial for employers to distinguish between genuine cases of absence due to illness or personal reasons and instances of unexcused absenteeism. Regular absenteeism can disrupt workflow, disrupt team dynamics, increase workload for others, and lead to decreased productivity.

Calculating Absenteeism Rates

The following formula is used to calculate an employee’s absentee rate:

For example, Bob has four unexcused absences over the course of one working month (26 working days). Hence, his absentee rate is:

What Causes Absenteeism

Several factors contribute to absenteeism within the workplace. These may include:

• Health-related issues: Frequent illnesses, chronic health conditions, or mental health concerns can result in increased absenteeism.
• Work-related stress: High-stress environments, excessive workload, poor work-life balance, or job dissatisfaction can lead to higher levels of absenteeism.
• Lack of engagement: Employees who feel disconnected from their work or lack motivation may be more likely to be absent.
• Personal reasons: Family obligations, childcare responsibilities, or personal emergencies can also contribute to absenteeism.

How You Can Combat Absenteeism

Employers play a crucial role in mitigating absenteeism and creating a positive work environment. Here are some effective strategies that can be employed:

Promote a Healthy Work-Life Balance

Encourage flexible work arrangements, such as telecommuting or flexible hours, to help employees manage personal obligations effectively.

Implement Wellness Programs

Provide resources and initiatives that promote physical and mental well-being. This can include gym memberships, counseling services, stress management workshops, or yoga classes.

Foster a Supportive Workplace Culture

Encourage open communication, provide opportunities for employee feedback, and ensure that employees feel valued and supported in their roles.

Recognize and Reward Employees

Acknowledge and appreciate employees’ contributions through regular recognition programs, performance bonuses, or career advancement opportunities. Recognized employees are more likely to remain engaged and committed to their work.

Provide Development Opportunities

Offer training programs and career development opportunities that help employees enhance their skills and knowledge, leading to increased job satisfaction and engagement.

Strengthen Communication Channels

Ensure that communication between management and employees is clear, transparent, and consistent. Regularly update employees on organizational changes, policies, and upcoming events.

Monitor and Address Workplace Stress

Regularly assess workloads and identify potential areas of excessive stress. Provide resources for stress management and offer support to employees facing challenging situations.

Establish Clear Leave Policies

Develop comprehensive leave policies that outline procedures for reporting absences, medical documentation requirements, and any consequences for unauthorized absences.

Listen to Your Employees

To understand what your employees are facing, you need to listen to their concerns by using pulse surveys, or by periodically conducting interviews to understand their job satisfaction levels. This can help identify potential issues and implement appropriate solutions in a timely manner.

Manage Absences Effectively with BrioHR

Absenteeism can have a detrimental impact on the overall functioning of a workplace, affecting productivity and employee morale. By implementing the strategies outlined above, employers can reduce absenteeism and foster a positive work environment that promotes employee well-being, engagement, and satisfaction.

Another tool that employers can use for absence and leave entitlements is HR software. With BrioHR’s leave module, you can calculate leave balances accurately, as well as keep track of the various types of leave (sick leave, annual leave etc).

With a secure, scalable platform, BrioHR’s software covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.

This enables business owners and HR teams to truly focus on what matters most – people.

Visit briohr.com and get a free demo now.

The post Absenteeism: Causes and What You Can Do About It appeared first on BrioHR.

Annual leave – who doesn’t love paid time off? It’s also an important benefit for employees to rest and recharge, able to return and give their best at work. And, giving lots of annual leave is a great perk to attract talent to the company.

As a result, much of HR’s time is spent calculating annual leave entitlements, checking leave balances, and occasionally settling leave disputes among employees. Here’s all that you need to know about annual leave in Malaysia.

The Legal Entitlement to Annual Leave

Alongside other types of leave, annual leave is a legally mandated benefit under Malaysia’s Employment Act 1955.

In Malaysia, the legal entitlement to paid time off from work is as follows:

• 8 days per year if employed for 1–2 years,
• 12 days per year if employed for 2–5 years,
• 16 days per year if employed for longer than 5 years.

Calculating Annual Leave Entitlement

There are broadly two ways of calculating annual leave entitlement.

Prorated Leave Entitlement

Employees will have their annual leave entitlement reset on 1 January every year. For example, if they are entitled to 12 days of annual leave, they will earn all 12 days of annual leave on 1 January.

If an employee joins midway through the year, their annual leave entitlement will be prorated. For example, if a new joiner starts on 1 July, they will only be entitled to six days. On 1 January the following year, they will get the full 12 days of annual leave.

Prorated leave also applies to resigned employees. If an employee is entitled to 12 days of annual leave, but resigns on 30 June, then their leave will be prorated to 6 days.

Also, the annual leave entitlement reset date need not be set on 1 January; it can fall on any other date determined by the company.

Earned Leave Entitlement

Employees will ‘earn’ their leave as they work throughout the year. For example, if they are entitled to 12 days of annual leave, they will earn 1 day per month, culminating in 12 days in December. On 1 January the following year, their earned leave entitlement will reset to zero (assuming they can’t carry forward leave).

Under this system, if the employee wants to take leave in May, they will only be entitled to 5 days of annual leave. And if a new joiner starts on 1 July, they will not be entitled to any leave; the new employee will have to earn their leave as well.

This is useful for companies because they don’t need to calculate anything for new joiners and especially resignees. The company will assume that resignees have earned all their leave. The downside is employees can only take one or two days off throughout the year, and can only take longer leave towards the end of the year.

What Employees Can Do with Unused Leave

Sometimes, employees will accumulate a lot of unused annual leave. Companies will commonly provide two options for them to use it.

Carry Forward Annual Leave

Employees may carry forward unused annual leave to the next year. Normally, only a fraction of the employee’s entitlement can be carried forward, and must be used by a certain date.

You can see how it works in the following sample carry forward leave policy:

“Employees may carry forward 5 days of leave into the next year, subject to the Company’s approval. Any leave days that are carried forward must be utilized by 31 March of the following year. Otherwise, they are forfeited.”

Under this policy, if an employee has 10 days of unused annual leave on 31 December 2022, they can only carry forward five days of leave into 1 January 2023 in addition to their existing annual leave entitlement. However, they need to use the additional five days of leave by 31 March 2023 before it is automatically forfeited.

Annual Leave Encashment

An alternative to carry forward leave is converting it into cash. This is known as leave encashment.

In effect, the employee is ‘selling’ their annual leave back to the company at an agreed rate. This is normally equivalent to the employee’s daily pay.

Leave encashment is not as common as carry forward leave, and is not a legal requirement for employers. The only way to encash leave is if the company explicitly provides for it in the employment contract and/or employee handbook.

Resigned Employees and Annual Leave

When an employee has surplus annual leave upon their resignation, you can give them two options.

1. You can use it to offset their notice period. For example, let’s say an employee has a 30-day notice period and seven days annual leave balance. If they resign on 1 July, their last day will be 31 July. But they can use the seven days of annual leave to ‘bring forward’ their last day of work to 24 July.
2. You can offer to encash their remaining annual leave.

Each option is of course subject to company policy and what is stated in the employment contract and/or employee handbook.

Other Annual Leave FAQs

Are employees on probation entitled to annual leave?

This will depend on the employment contract. Normally, employees on probation are not entitled to paid annual leave. If they need to take leave, it will be deemed as unpaid leave.

However, the leave benefits in the Employment Act 1955 apply to the following categories of employees, regardless of probationary status:

• Employees that earn a monthly salary of RM2,000 or less. The amendments to the Employment Act 1955 will change this threshold to RM4,000 or less, taking effect on 1 January 2023.
• Employees who are engaged in manual labour, regardless of salary.
• Domestic servants.
• Other categories of employees within the First Schedule of the Employment Act.

Can employers reject an employee’s annual leave application?

Yes. While employees are entitled to annual leave, the employer still retains control of when the leave can be used.

To be safe, it’s better to give a reason as to why an employee’s annual leave request is denied. These include:

• Insufficient notice was given.
• Leave application is not according to company procedure or policy.
• Other employees are also going on leave.
• There is urgent work that needs to be completed (or it is the company’s peak period).

Can the company force employees to take annual leave?

Sometimes, during quiet periods, the company may close the office temporarily to save costs. However, this is not a reason to force employees to take annual leave. The Industrial Court has held in multiple cases that annual leave “should not be enforced on the employee merely to suit the company’s convenience.”

Guidance from the Ministry of Human Resources also states that employers cannot force their employees to take annual leave during the Movement Control Order (MCO) period.

Can employees that are working from home take annual leave?

Yes, they are also entitled to annual leave. If anything, working from home leads to an unhealthy work-life balance and increases the risk of burnout. Hence, employees that are working from home can indeed take annual leave and ‘switch-off’ from the office.

Get Annual Leave Right with BrioHR

As we can see, calculating annual leave can get quite complicated. This is even before including the other types of leave, like sick leave, emergency leave, parental leave etc.

With BrioHR, leave calculation can be customized and automated according to your company’s policies. Employees can also plan their leave and check their leave balance, while managers can approve their leave autonomously via BrioHR’s desktop and mobile app.

With 9 powerful modules, BrioHR’s software covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.

This enables business owners and HR teams to truly focus on what matters most – people.

Visit briohr.com and get a free demo now.

The post What You Need to Know About Annual Leave appeared first on BrioHR.

Many people want to start a family, but more often than not, work gets in the way. This is where parental leave gets involved.

Originally, parental leave was designed to increase women’s participation in the workforce through maternity leave, allowing new mothers precious time to bond with the newborn and recover from the stresses of childbirth. But now, there is also the added option of paternity leave, which involves the father’s role in childcare.

Maternity leave has always been a protected right in most jurisdictions. In Malaysia, maternity leave is a statutory entitlement according to the Employment Act 1955. Conversely, until very recently paternity leave has not been a statutory right. It is up to the individual employer whether or not to give paternity leave.

Both forms of parental leave recognize that children are society’s shared responsibility – not an inconvenience to the business.

Here is what you need to know about both maternity and paternity leave in Malaysia.

Maternity Leave

As mentioned before, maternity leave is a protected right under the Employment Act 1955. Basically, that means:

• Employers must provide all female employees a minimum amount of paid maternity leave.
• Employers cannot remove or reduce such maternity benefits in the employment contract.
• Employers are prohibited from dismissing a female employee while she is on maternity leave (unless it is due to the closure of the business).

However, while maternity leave is a statutory right, there are still conditions that must be fulfilled to be eligible:

• The employee must have been employed within the 4 months leading up to confinement.
• The employee must have been employed for a total of 90 days in the nine months prior to confinement.
• Maternity leave only applies for the first five children.

Expectant mothers can take maternity leave at any time as long as it is not earlier than 30 days before confinement or later than the day immediately following confinement.

Furthermore, the pregnant employee must notify their employer at least 60 days prior to their expected confinement period. Employees can choose to work right up until the day they give birth, or commence maternity leave 30 days before their expected confinement (supported by a doctor’s letter confirming their due date).

Currently, the minimum amount of paid maternity leave in Malaysia is 60 days. Come 1 January 2023, the amendments to the Employment Act 1955 will kick in, which will see new mothers given 98 days of paid maternity leave.

Paternity Leave

Unlike maternity leave, leave for new fathers is an uncommon thing throughout the world. Nevertheless, in recognizing the father’s importance in a child’s life (and to boost staff morale), many private companies have already started offering paternity leave.

Paternity leave policies vary considerably among employers, with some giving only three days off, while others give a generous 30 days off. However, in line with international norms, Malaysia will introduce statutory paternity leave in the amendments to the Employment Act 1955 that will take effect on 1 January 2023. Under the amended Act, new fathers will get seven days of paid paternity leave.

These conditions must be fulfilled:

• The employee must be married to the mother giving birth.
• The employee must be employed for the last 12 months.

The expectant father must also notify their employer at least 30 days prior to the expected due date.

Track Parental Leave with BrioHR

Tracking leave manually can be slow and error-prone, particularly when many types of leave are involved. From annual leave to sick leave, maternity leave, and soon paternity leave, BrioHR’s leave and time-off module can help you track which employee is on leave easily.

Plus, applying for leave is made easy with BrioHR’s user-friendly app and cloud-based interface, enabling employees to apply for parental leave much easier.

With 9 powerful modules, BrioHR’s software covers the entire employee journey from recruitment to onboarding, payroll and claims, to performance and analytics, and more.

This enables business owners and HR teams to truly focus on what matters most – people.

Visit briohr.com and get a free demo now.

The post Parental Leave in Malaysia: What You Need to Know appeared first on BrioHR.

Virtually every company will offer some type of leave to their employees. Certain types of leave policy are mandated by employment laws, while others are provided at the employer’s discretion. Nevertheless, having paid time off lets employees come back rejuvenated and refreshed, building a positive work environment.

Here, we describe 10 of the most popular leave policies that every HR professional and business owner should know. Your organization’s leave policy plays a huge role in attracting and retaining top talent, so keep this in mind when deciding which policies will work best for the business.

Sick Leave

Sick leave is meant for rest and recuperation from injury or disease. Employees who are unwell not only heal faster in the comforts of home; they also prevent infectious diseases from spreading around the office. The latter concern is even more pertinent now given the awareness of the COVID-19 pandemic.

Many jurisdictions have the right to paid sick leave as a key component of their employment laws. In Malaysia, the Employment Act 1955 governs the provision of sick leave.

In Malaysia, the legal entitlement to paid sick leave from work is as follows:

• 14 days per year if employed for 1–2 years,
• 18 days per year if employed for 2–5 years,
• 22 days per year if employed for longer than 5 years.

Hospitalization Leave

Aside from sick leave, there are also provisions for hospitalization leave should the employee need to be admitted into hospital. Under the Employment Act 1955, employees are entitled to 60 days of hospital leave per year.

Note that hospitalization leave is separate from sick leave. An employee will need to be certified by a doctor in order to utilize their hospitalization leave.

When taking into account the legal entitlement to paid sick leave, the total amount of sick leave plus hospitalization leave days is as follows:

• 74 days per year if employed for 1–2 years,
• 78 days per year if employed for 2–5 years,
• 82 days per year if employed for longer than 5 years.

Annual Leave

Like sick leave, rest and paid time off from work is important for employees’ mental wellness, preventing burnout and a loss of productivity. Equally, paid annual leave is also included in many employment laws around the world.

In Malaysia, the legal entitlement to paid time off from work is as follows:

• 8 days per year if employed for 1–2 years,
• 12 days per year if employed for 2–5 years,
• 16 days per year if employed for longer than 5 years.

Maternity Leave

Leave for new mothers is given so they can recover from childbirth and fully focus on caring for the newborn child. In Malaysia, the legal entitlement to maternity leave is 60 days, but a recent amendment to the Employment Act 1955 extends it to 98 days. At the time of publication of this post (23 June 2022), the amendment is not yet in force.

Nevertheless, many private companies do already give maternity leave in excess of the required 60 days for female employees. Maternity leave of 90 days, 120 days, or even 180 days is not uncommon.

Paternity Leave

Unlike maternity leave, paternity leave for new fathers is not mandatory in Malaysia. However, many private companies do give some form of paternity leave for new families to settle down after the birth of a child. These tend to be much shorter than maternity leave – ranging from just three days, or up to 30 days in larger companies.

However, the same amendment to the Employment Act 1955 that extends maternity leave will also introduce seven-day paternity leave for working fathers. At the time of publication of this post (23 June 2022), the amendment is not yet in force.

Emergency Leave

Normally, an application for annual leave is required several days in advance to enable work planning and approvals. However, if this is not possible, emergency leave is meant for employees to take a personal absence from work if they need to handle any private affairs on short notice.

This can be applicable to a variety of scenarios, including caring for sick family members, meeting with a minor accident, or any other unforeseen circumstance that will likely result in an absence from work.

Understandably, employers do not encourage such absences. Thus, they may only limit emergency leave to two or three days per year. Any further absences will likely be unpaid leave or deducted from the employee’s annual leave allocation.

There is no legal entitlement for emergency leave.

Replacement Leave

If an employee is required to work weekends or on public holidays, the company may offer them the option of taking a different day off as a substitute. Such a leave policy is sometimes referred to as “time-off in lieu”.

Such leave is normally offered to employees who are not eligible for overtime pay, as there is no legal entitlement for replacement leave.

However, for staff in Malaysia whose pay is below RM2,000, the provisions of the Employment Act 1955 apply if they are required to work on public holidays. Consequently, employers are obliged to either pay the overtime rate or grant replacement leave.

Compassionate Leave

When an employee loses a loved one in the course of their employment with the company, the company may offer paid time off in the form of compassionate leave.

This gesture allows employees time to grieve and return to work with a clear mind. A normal compassionate leave policy would include three to seven days of leave per year.

There is no legal entitlement for compassionate leave.

Study Leave

Study leave is normally granted when an employee is taking a short course that is regarded as beneficial to the organization. Such leave may also be granted if the employee is taking examinations towards a certification that will upgrade their expertise and/or professionalism in their career.

There is no legal entitlement for study leave.

Volunteer Leave

Taking time off for volunteering is increasingly popular among employees who want to support the community and contribute back to society. At the same time, companies also want to highlight their social values and mission to do good in the world.

With this in mind, more and more companies are including paid leave for employees to do social volunteering projects. Such projects can also be part of the company’s corporate social responsibility agenda to encourage more employees to participate.

There is no legal entitlement for volunteer leave.

Unpaid Leave

For whatever reason, employees may want to take leave even though they may not have enough paid leave days left. Or an employee may want to take an extended sabbatical from work.

In this case, the organization can offer the employee the option to take unpaid leave. Depending on the organization, there is much leeway on how the unpaid leave policy is implemented. Some companies may offer up to six months’ unpaid leave, while others may not even give the option.

There is no legal entitlement for unpaid leave.

Manage Leave the Easy Way with BrioHR

If you’re looking to manage leave policies for your business, BrioHR helps you get started in a fuss-free, user-friendly way. BrioHR’s leave function is mobile-ready so employees can apply for leave wherever they are, and managers can also approve them easily.

BrioHR’s all-in-one, cloud-based solution with nine powerful modules automates repetitive tasks and empowers HR in a user-friendly interface. This enables business owners and HR teams to truly focus on what matters most – people.

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