This question comes up every time business slows down…
“If there’s no work, can we force employees to take annual leave?”
Short answer: No.
Under Malaysian employment law, annual leave is an employee entitlement.
So don’t confuse it as a business “buffer”.
The concept is simple:
If an employee is ready, willing, and able to work, but the employer has no work to offer, the risk sits with the employer, not the employee.
And this has been established by the Industrial Court for decades.
Yes, employer may reduce production.
But they cannot unilaterally force employees to take annual leave or unpaid leave just because business is slow.
That said, there are companies that have successfully implemented scheduled leave.
Banks, for example, do this all the time.
So how do they do it?
AHA!
If you want to know how, come to my training in April 2026 at Connexion, Bangsar South, where I’ll share the lawful way to implement these so-called “forced” leaves properly.
More information: https://cadtraining.com.my/employment-act-aunty-hr-slk-2026
xoxoxo, AuntyHR
