The Human Resources Ministry (KESUMA) has issued a stern reminder to employers against forcing employees to take annual leave or unpaid leave if they decide to close their businesses for an extended period during the Chinese New Year (CNY) holidays.
The ministry stressed that such practices are illegal and violate workers’ rights under Malaysia’s labour laws.
In a statement, KESUMA said it received complaints from employees who claimed their employers had compelled them to take leave due to company shutdowns beyond the designated public holidays.
The CNY holidays for 2025 fall on January 29 and 30, and some businesses have opted to remain closed before or after these dates.
However, the ministry would like to clarify that workers should not be forced to use their Annual Leave entitlements or suffer salary deductions as a result,” it wrote.
The ministry further added that employees have the right to determine when they wish to take their annual leave.
“Employers are not allowed to compel workers to use their leave or take unpaid leave simply to reduce business costs,” the ministry stated.
KESUMA emphasized that any leave taken must be voluntarily requested by the employee, not imposed by the employer.
To safeguard workers’ rights, the ministry urged affected employees to report any cases of unlawful leave deductions or salary reductions to the nearest Labour Office.
Such actions would be considered a violation of Section 69 of the Employment Act 1955 (Act 265), which protects employees from unfair labour practices.
KESUMA reiterated that all employers must comply with Malaysia’s employment laws and respect workers’ entitlements.
Failure to do so could result in legal action and penalties. The ministry also encouraged businesses to plan their operations responsibly while ensuring that workers’ rights remain protected during festive periods.
