Malaysia Employee Leave Guide Series

Whether you're an HR professional, employer or employee, these guides cover both the minimum statutory leave entitlements under the Employment Act 1955 and the additional company leave benefits commonly offered in Malaysia.

• Part 1: Malaysia Employee Leave Guide (2026): Statutory Leave Entitlements
• Part 2: Malaysia Employee Leave Guide (2026): Non-Statutory Company Leave

You're currently reading: Part 2 – Non-Statutory Company Leave

Quick Summary

Besides the statutory leave required under the Employment Act 1955, many employers offer additional leave benefits to improve employee wellbeing, retention and work-life balance.

At a Glance

1. Compassionate Leave

Usually granted when an immediate family member passes away.

Common practice:

• Parent
• Spouse
• Child
• Grandparent

Typical entitlement:

2–5 days

2. Marriage Leave

Given when an employee gets married.

Usually:

1–3 days

Often limited to the employee's first legal marriage.

3. Emergency Leave

This is probably the most misunderstood leave.

There is no Emergency Leave under the Employment Act.

When employees say

"I want emergency leave"

HR normally converts it into

• Annual Leave
• Unpaid Leave
• Compassionate Leave
• Replacement Leave

depending on company policy.

4. Replacement Leave

This deserves its own section.

Many companies use it.

Example:

Employee works on

• Sunday
• Rest Day
• Company Event
• Weekend Exhibition

Instead of paying extra,

company gives

Replacement Leave

Example

Work Sunday

↓

Take Monday off

Important:

Replacement Leave cannot automatically replace statutory overtime or public holiday payment where the Employment Act requires premium pay.

5. Time Off In Lieu (TOIL)

Many HR confuse TOIL and Replacement Leave.

Actually they're different.

Replacement Leave

↓

Usually replaces an extra working day.

TOIL

↓

Given for working additional hours.

Example

Employee worked

10pm–2am

Instead of OT claim

Company gives

4 hours TOIL.

6. Training Leave

Very common nowadays.

Example

Employee attends

• HRD Corp course
• NTW course
• Microsoft certification
• AWS certification

Normally

Training Leave

or simply considered

Working Day.

7. Study Leave

For employees pursuing:

• Degree
• Master
• ACCA
• CIMA
• CPA
• CIPD

Usually

3–10 days

before exams.

8. Examination Leave

Different from Study Leave.

Study Leave

↓

Revision

Examination Leave

↓

Actual exam day.

9. Birthday Leave

Increasingly common among startups.

Usually

1 paid day

during birthday month.

10. Childcare Leave

Some companies provide:

• Child sick leave
• Child vaccination leave
• Parent care leave

These are not statutory.

11. Hajj / Umrah Leave

Common among Malaysian employers.

Usually:

• Once during employment
• 5–14 days
• Subject to company policy

12. Volunteer Leave

Growing ESG trend.

Employees receive

1–3 paid days

for volunteer activities.

13. Wellness Leave

Very popular after COVID.

Examples:

• Mental Health Day
• Recharge Leave
• Self-care Leave

14. Sabbatical Leave

Mostly for:

• Universities
• MNCs
• Senior Management

Typically after

5–10 years

of service.

HR Checklist

Before introducing any company leave:

☑ Define eligibility.

☑ State whether paid or unpaid.

☑ Explain approval process.

☑ Include required documents.

☑ State whether unused leave expires.

☑ Configure HRMS correctly.

FAQ

Is Compassionate Leave mandatory?

No.

Is Emergency Leave required by law?

No.

Is Replacement Leave compulsory?

No.

It depends on company policy unless it is being used to satisfy statutory obligations, where employers must still comply with the Employment Act's minimum pay requirements.

Can employers offer more leave?

Yes.

The Employment Act only provides minimum statutory leave.

Employers may always provide additional leave benefits.

Key Takeaway

The Employment Act 1955 sets the minimum statutory leave entitlements, but many organisations go beyond these requirements by introducing additional company leave benefits. Well-designed leave policies can improve employee wellbeing, strengthen retention and enhance the employer brand, provided the terms are clearly documented and applied consistently.