Unpaid Leave

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asked on Jan 16, 2014 at 21:35
Can i know is it legal on employment law for company to restrict number of annual leave to be taken per month? No employment handbook printed, just by memo.
My company restrict only allow staff take maximum two (2) days of annual leave per month. Leave more than two days will be approved but will be treated as unpaid leave even though that employee have enough earned annual leave.
Hope to hear some professional opinion before formally feedback to the management. Thank you.
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answered on Jan 17, 2014 at 02:39
Hi there

First of all, are you under the scope of the Employment Act 1955, which is for those earning wages less than RM 2,000. If you are, then your entitled to rely on the Employment Act 1955 and the Act does not state that annual leave can be restricted in any way and as such you can argue that the Company's policy by way of memo is not valid in view of the Employment Act.

However, if your not under the scope of the Employment Act, then the question is whether the memo is valid since the memo is unilateral imposition and as such it is arguable whether it binds you. However, even if its not binding, your options are limited and might not be worth the effort to argue much taking into account the inequality in terms of employer and employee relationship.
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