Carry Forward leave

Today is the 100th Day since the Employment (Amendment) Act 2022 and the Employment (Amendment of First Schedule) Order 2022 came into effect.

Even before 1st Jan 2023, a lot of HR in companies who has offices in Peninsular Malaysia and Labuan were busy implementing the changes written in the amended act including myself.

Also in most companies, their current compensation & benefit are mostly at par or above the Act so when HR was implementing the changes, many just referred to what is in the amended acts and not the Employment Act 1955 itself.

Now, this is an interesting one. In Employment Act 1955 Section 60E(2), it states that:

“The employer shall grant and the employee shall take such leave* not later than twelve months after the end of every twelve months continuous service and any employee fails to take such leave at the end of such period shall thereupon case to be entitled thereto…”

* Refers to paid annual leave

I know a lot of HR missed this one. Did yours?

Then some also asked, is this applicable to fixed term contracts? Well, to my knowledge, it is not applicable. Because the principle is that the contract has a definite end date and renewals are not guaranteed. Hence, the rule that annual leave must be utilized within the contract period can be implemented.

Opinions?

#MondayRamblings #EA1955 #BebelBimbo

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AuntyHR™

Also known as Professional Bimbo

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Ku Sim Ling, fondly known as AuntyHR™ on social media, is a seasoned HR expert with 20 years of experience in the workforce solutions industry. With half a million followers across LinkedIn, Instagram and TikTok, she's influencing the HR landscape from Malaysia.

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