Chinese New Year is coming, and many companies, especially SMEs with Chinese bosses, plan to ‘shut down’ offices during this festive season. A lot of you have asked me, “Aunty, my company is implementing compulsory leave during CNY. They are forcing us to apply for Annual Leave, but I want to save my leaves for my personal holidays. Is this legal?”
The direct answer is no. It has been established in court that annual leave is usually taken for personal reasons, like wanting to have fun and relax. It’s not some convenient tool for the company to use whenever they feel like it.
The principle is, if the employee is ready to work and the employer does not have any work for them, it’s the employer’s problem, not the employee’s.
However, if the company is in a financial crisis, and referring to the Code of Conduct for Industrial Harmony 1975, before considering a company-wide salary cut or retrenchment to save the company, the company should first attempt to reduce working hours, which can include implementing compulsory leave.
So, a more disturbing question would be, is your company doing alright financially? Should you be concerned about the security of your job?
Now, if companies are doing financially well and still want to implement this compulsory leave, can it be done? Yes, banks do it all the time, actually. But how? Aaahhhh… that trick has a price to pay, literally.
Malaysia HR Forum is currently offering their new Comprehensive IR/ER Advisory Services to tackle these and many other issues. To find out more of the program, click here: https://forms.gle/y3ygJkop7VW7XbDCA
#HRMatters #IndustrialHarmony #AuntyHR
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