A Malaysian employee has sparked a discussion online after claiming that their company encouraged staff to use two days of annual leave to attend a team building event.
The employee shared the situation on Threads, questioning whether it was normal for workers to use their own leave for a company organised activity held on working days.
2D1N team building held on working days
According to the Threads user, the company was planning a two day, one night team building stay at a hotel.
However, the event would take place during normal working days.
The employee claimed that staff were being “encouraged” to utilise their annual leave for both days.
“Is there anyone from HR here? I would like some opinions. Can a company really ‘encourage’ employees to use annual leave for a company event?” the user wrote.
‘Why should employees use their AL?’
The post quickly drew reactions from other Malaysians, with several questioning why annual leave was involved in the first place.
One commenter said that if the team building activity was being held on a working day, employees should not have to use their annual leave just to participate.
Another argued that requiring staff to take leave would effectively amount to forced leave.
Others shared their own experiences, with one person saying their previous company had instead given employees additional leave that could be used whenever they wanted.
The original poster replied that their former workplace had done something similar, adding that the current arrangement was giving them a headache.
Another commenter said they had heard of similar practices before, but claimed many employees simply accepted them as they did not want to create problems with their employers.
The original poster appeared surprised by this, replying that their company was an MNC.
Can companies force workers to use annual leave?
While Malaysia’s Employment Act does not specifically address annual leave for team building events, the Ministry of Human Resources, also known as KESUMA, has previously made its position on forced annual leave clear.
In a January 2025 statement, KESUMA said employees have the right to determine when they wish to apply for annual leave.
The ministry said employers should not force employees to take annual leave or unpaid leave to reduce business costs, adding that such leave should be taken based on the employee’s own wishes and application.
Meanwhile, Section 60E of the Employment Act 1955 provides employees with paid annual leave entitlements based on their length of service.
Employees who have worked for less than two years are entitled to at least eight days of annual leave, while those who have worked between two and five years receive at least 12 days. Employees who have worked for five years or more are entitled to at least 16 days.
However, there is an important distinction in this particular case as the employee said workers were being “encouraged” to use their annual leave.
It remains unclear whether employees are actually required to take annual leave, whether their leave will automatically be deducted, or whether they are free to decline the team building event without doing so.
What if attendance is compulsory?
Another consideration is whether attending the team building event is compulsory.
Under Section 60A of the Employment Act 1955, “hours of work” refers to the time when an employee is at the disposal of the employer and is not free to dispose of their own time and movements.
The Act does not specifically state that all company team building activities automatically count as working hours.
However, whether an event could be considered working time may depend on factors such as whether attendance is mandatory and how much control the employer has over the employee during the programme.
Workers can approach the Labour Department
Employees who believe their employment rights or terms and conditions have been breached can also lodge a complaint with the Department of Labour Peninsular Malaysia.
According to JTKSM’s official complaints page, complaints involving breaches of employment terms and conditions or other employment related issues can be submitted to the department.
Complaints can be made through channels including the nearest Labour Office, email, SISPAA, phone or the Working for Workers application.
It should also be noted that the Employment Act 1955 applies to Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak are governed by their respective labour laws, according to JTKSM.
For now, it remains unclear whether the employees in this case will actually have their annual leave deducted or whether using their leave is merely being presented as an option.
