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Asrul Nurfadzli A. Rahim
23/04/2012 23:39:27
Re: Enquireis regarding Annual Leave

Hi PesaraOnline.

Thank you for your informative website which i find very useful to the public.

In regards to the above matter, i would like to enquire about my status. I've join my current company on 17th October 2011 and tenderred my resignation on the 8th April 2012. In total, i've served almost 5 months with my current company.

In my Employment Contract, it was stated that I'm entitled to 16 days annual leave. However to my dismay, upon joining the company, i was given a copy of their Employee Handbook which stated that i couldn't claimed any of my annual leave until i am a confirmed staff. FYI the probationary period is 6 months. Below is the context of the Employee Handbook in regards to this.


SCOPE : All Employees

PURPOSE : To outline the length of the probationary period of a newly appointed employees and the procedures required for a staff confirmation.


A. Appointment of Successful Applicant

i. A letter of appointment would be issued to the successful candidate.

ii. Relevant information for remuneration purposes will be loaded onto the Payroll Information System.

iii. A Personal File will be opened and maintained for every employee. This file should be updated continuously.

B. Probation

i. All newly appointed employees shall be required to serve a six (6) months probationary period.

ii. In the event where the employee does not meet the company’s performance requirement, the Management can either terminate his/her service after the probationary period ends or the Management may extend the probationary period for a further maximum period of three months.

iii. During the period of probation, the employment may be terminated by either party giving to the other not less than two weeks notice.

iv. Employee under probation are not entitled to accrued leave, bonus payment and salary increment or adjustment unless decided otherwise by the sole discretion of the Managing Director on case to case basis.

v. During the period of probation, the Company shall contribute to the Employees Provident Fund at the prevailing rate or at any rate determined by the Ordinance.

C. Confirmation

i. New employees who have performed satisfactorily during the probationary period shall be recommended by their respective manager for confirmation. The Managing Director shall then issue a letter of confirmation. The service of the newly confirmed employee shall be deemed to be effective from the date of his/her reporting for duty.

ii. A confirmed employee shall enjoy all employment benefits extended by the Company.

Upon tendering my resignation, i was told that my annual leave shall be forfeited as I'm not entitled to it.

To my understanding, regardless whether we're confirmed or not, all employee shall be entitled for annual leave. For every month completed, there should be at least a day of Annual Leave earned. It is only and in my case of 16 days entitlement per annume, this should be proportianately calculated as 16/ 12= 1.333 days for every completed month.

Yes I do agree that a company reserved the right not to allow staff from taking leave within a stipulated time, as in my case untill my confirmation, but not to the extend of forfeiting that right from me.

I really appreciate your advise. I've went to the Labour office but was told that they only cover for cases involving employee who earn less than 2,000 per month.

Thanking you in advance.


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KL Siew
24/04/2012 09:10:20
Since you are not covered by the Employment Act, the conditions set by the employer are valid. I think there is not much point pursuing the matter further.
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24/04/2012 22:10:28
Hi Mr. Siew.

I guess that there's a misunderstanding here. I strongly believed that all Employee in Malaysia is covered by the Employment Act.

It's only that when i went to the Labour Office, i was told that in my case, i couldn't lodge the matter to them as i need to file a legal suit in the Civil Court instead of going through them.

When i asked why, they told me that the Labour Office normally will only act on behalf of employees who's earning less than 2,000 per month or employees being classified as Unskilled Employees e.g Driver, Tea Lady, Stenographer etc who might earned more than 2,000 per month.

So it is a bit shocking of you to say that i'm not covered by the Employment Act as I worked in Malaysia for a company registered and based in Malaysia. Like everyone else, I also get contributed to the EPF, SOCSO and pay my taxes.

The reason that i sought for your advice is to get a clearer picture before pursuing this matter legally as advised by the Labor Office.

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KL Siew
25/04/2012 08:53:10
Sorry to say, Asrul, there is no misunderstanding. The Labour Office was correct saying that the Act only covered non manual employees with salary not more than RM2000, It is not for all employees as you said. Another thing I want to make clear, if you are an manual workers like mechanic, driver, operator, you are still covered by the Act even your salary is over RM2000. By the way, what is your occupation? Just want to know whether you belong to the manual category or not. Meanwhile, read the First Schedule of the EA for more info about who are covered by the Act.
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