One-Stop HR Information Centre

April 22, 2009

When Would An Employee Not Entitled to Any Paid Sick Leave?

Filed under: FAQ

An employee would not be entitled to any paid sick leave:

  1. during her period of approved maternity leave;
  2. during the period of he / she is receiving any compensation for disablement under the Workmen’s Compensation Act 1952 (WC);
  3. during the period of he / she is receiving any periodical payments for temporary disablement under the Employee’s Social Security Act 1969 (SOCSO).

In the above cases whereby compensation is paid under WC and SOCSO, and the employee is not paid for such sick / hospitalisation leave, the sick leave / hospitalisation leave shall not be deducted from the employee’s entitlement.

Are Retrenchment (lay-off) Benefits Subject to Statutory Deduction (in Malaysia context)?

Filed under: FAQ

Retrenchment benefits received by any employee are taxable under Malaysian income tax law. However, certain tax exemption is granted for such benefits received. Tax exemption granted is restricted to RM6,000 for each completed year of service with the same employer, or with companies in the same group. Under Mini Budget Year 2009, tax exemption has been increased to RM10,000 for each completed year of service.

Retrenchment benefits, however, is not subject to EPF and SOCSO contribution.

October 9, 2007

What is the purpose of Show Cause Letter?

Filed under: FAQ

To provide the employees a chance to explain his / her misconduct (whether alleged or with proof), and why disciplinary actions shall not be taken against him / her.






















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