There is no provision in the EA for calculation of unpaid leave, balance of salary etc. It is just simple arithmetic. When an employee is paid a certain amount of salary per month, his salary per day should be salary/number of days in a month, isn't it?
You may be having the '26 days' in mind. '26 days' is used for calculation of ORP (ordinary rate of pay) for annual leave, sick leave, overtime etc under Part XII of the EA and the '26 days' is in the formula mentioned in Section 60I
Consult the Labour Department about this also and let us have the feedback if there is a different way for the calculation of unpaid leave.
My company practises a totally different calculation although we are employed on a monthly wage. Our working days are Mon-Fri. What they do is that let's say for the month of September 2008 we work only 22 days,not counting Saturdays and Sundays. The way they calculate our unpaid leave is our (salary/22days)x No.unpaid leave. Which means that our unpaid leave comes up to about RM100+ per day.Is this alright by labour law?
KL Siew has put up a sister site by the name of mylabourlaw.net, which is in effect a more user-friendly version of the present popular pesaraonline.net. The site is in the process of being fine-tuned but it is fully functional. You are invited to visit the website at http://www.mylabourlaw.net and give your views or suggestions. Queries can be posted and be responded from there as usual.