Can Employers Reject Employee Sick Leaves in Malaysia?

Employers in Malaysia cannot arbitrarily reject an employee’s properly certified sick leave. However, HR may review if the employee obtained valid medical certification, informed the company within 48 hours period or has paid sick leave remaining.

Nobody plans to fall sick. An employee may feel slightly unwell at night, wake up with more serious symptoms and need to inform their manager before visiting a clinic. After receiving an MC, one question may still cause concern.

Can the employer reject the sick-leave application?

What Does the Employment Act 1955 Say?

For employees in Peninsular Malaysia and Labuan, paid sick leave is mainly governed by Section 60F of the Employment Act 1955.

The ordinary paid sick-leave entitlement is:

Employees may also receive up to 60 days of hospitalisation leave per calendar year where hospitalisation is medically necessary.

Since 1 January 2023, hospitalisation leave is separate from ordinary sick leave. This means an employee may potentially qualify for 14, 18 or 22 days of ordinary sick leave, plus up to 60 days of hospitalisation leave.

An employee may also qualify for hospitalisation leave without remaining physically admitted throughout the entire period, provided a registered medical practitioner certifies that hospitalisation is necessary.

“From 1 May 2025, Sabah and Sarawak’s Labour Ordinance broadly aligned the principal sick-leave entitlements in both states with those applying in Peninsular Malaysia and Labuan.”

When Can an Employer Refuse Paid Sick Leave?

An employer may have grounds to refuse or reclassify a sick-leave claim in several situations.

There Is No Valid Medical Certificate

A message saying “I am sick” may notify the employer, but it does not automatically prove entitlement to paid sick leave.

Paid sick leave generally requires certification from an eligible medical practitioner, medical officer or dental surgeon.

Before rejecting the leave, HR check if its an emergency or serious condition prevented the employee from obtaining treatment.

The Employer Was Not Informed Within 48 Hours

Under Section 60F, an employee may be treated as absent without permission if they fail to inform or attempt to inform the employer within 48 hours from the start of the sick leave.

This does not always mean the physical MC must reach HR within 48 hours.

For example, an employee may notify a supervisor through WhatsApp on the first day and submit the MC later. The initial message may still satisfy the notification requirement, depending on the circumstances.

Paid Sick Leave Has Been Exhausted

A valid MC does not create unlimited paid leave.

If an employee has used all their statutory and contractual sick leave, the employer may classify further medically certified absence as:

• Unpaid medical leave
• Annual leave, if approved
• Another form of authorised absence

In this case, the MC may still be valid even though the absence is unpaid.

The MC Appears False or Altered

Employers may investigate an MC where there are reasonable grounds to question its authenticity.

Possible warning signs include:

• Altered dates
• Missing clinic details
• Inconsistent information
• Invalid practitioner details
• Confirmation that the clinic did not issue the MC

A pattern of taking leave before weekends or public holidays may appear suspicious, but it does not prove fraud.

Employers should verify the document, obtain the employee’s explanation and follow a fair disciplinary process before taking action.

Can Employers Reject a Non-Panel MC?

A non-panel MC should not be rejected automatically.

Section 60F gives priority to a medical practitioner appointed by the employer. However, another registered medical practitioner or medical officer may certify the leave when the appointed doctor is not reasonably obtainable within the time or distance required.

HR should consider:

• If a panel clinic was formally appointed
• Was it open or closed during employee’s visit
• How far it was from the employee
• Was treatment was urgent
• Is the employee was travelling or working remotely

For example, a night-shift employee who becomes ill after the panel clinic closes may have a reasonable basis for visiting a nearby 24-hour clinic.

Employers should also separate two issues:

• Accepting the MC as proof of illness
• Reimbursing the non-panel consultation fee

An MC may be accepted even if the clinic fee is not covered under the company’s medical-benefit policy.

Can Employers Contact the Clinic?

Employers may contact a clinic to verify if an MC was genuinely issued. However, they should not demand unnecessary information about the employee’s diagnosis or treatment.

Doctors are subject to patient-confidentiality obligations under the Malaysian medical regulatory framework. Employers should usually limit their questions to administrative verification, such as:

• Whether the clinic issued the MC
• The date it was issued
• The certified period of absence

Medical documents should also be stored securely and accessed only by relevant HR personnel or managers.

What Should HR Check Before Rejecting Sick Leave?

A simple decision process can reduce inconsistent or unlawful decisions.

Check the Certification

Confirm that the MC identifies the clinic, date and certified leave period.

Check the Practitioner

Determine whether it was issued by an appointed doctor, registered medical practitioner, medical officer or dental surgeon.

Check the Notification

Review when the employee informed or attempted to inform the company.

Include calls, WhatsApp messages, emails and leave-system records.

Check the Leave Balance

Confirm whether the employee still has ordinary sick leave or hospitalisation leave available.

Check the Clinic Accessibility

If a non-panel clinic was used, review its operating hours, distance and the urgency of treatment.

Ask for an Explanation

Where information is missing or suspicious, give the employee a reasonable opportunity to explain before taking disciplinary action.

What Outcomes Can HR Use?

Sick-leave applications do not always end with a approval or rejection.

Possible outcomes include:

1. Paid sick leave: The claim is valid and entitlement remains.
2. Paid hospitalisation leave: Hospitalisation is medically necessary.
3. Unpaid medical leave: The MC is valid, but paid entitlement is exhausted.
4. Accepted without medical reimbursement: The MC is recognised, but the clinic fee is not covered.
5. Unauthorised absence: Certification or notification requirements were not met without reasonable explanation.
6. Pending verification: The MC requires further checking.
7. Potential misconduct: There is evidence of falsification or dishonesty.

HR should record the reason for the final decision.

Do the Same Rules Apply in Sabah and Sarawak?

No. The Employment Act 1955 principally applies in Peninsular Malaysia and Labuan.

Employees in Sabah are governed primarily by the Labour Ordinance (Sabah Cap. 67), while employees in Sarawak are governed primarily by the Labour Ordinance (Sarawak Cap. 76).

Employers operating across Malaysia should ensure that their employment contracts and employee handbooks reflect the legislation applicable to each location.

What Mistakes Should Employers Avoid?

Common mistakes include:

• Rejecting all non-panel MCs automatically
• Treating late MC submission as the same as late notification
• Assuming frequent sick leave proves dishonesty
• Demanding unnecessary medical details
• Deducting pay without checking the leave balance
• Applying different rules to similar employees
• Dismissing an employee without investigating suspected fraud
• Combining ordinary sick leave and hospitalisation leave incorrectly

Employers should also maintain accurate leave records. The Employment Regulations 1957 require employers to keep employment records, including paid sick leave granted during the relevant wage period.

What Can Employees Do If Sick Leave Is Rejected?

Employees should first ask HR for the reason and request a formal review.

They should retain:

• The original MC
• Clinic receipts
• Messages notifying the employer
• Leave-system screenshots
• Employment contract clauses
• Company leave policies
• Payroll records showing deductions

For disputes involving unpaid statutory sick leave or labour-law non-compliance, employees may approach the relevant Labour Department.

Employees in Peninsular Malaysia may contact Jabatan Tenaga Kerja Semenanjung Malaysia, commonly known as JTKSM. Employees in Sabah or Sarawak should contact the relevant state Labour Department.

Sick Leave is a Right, But Don’t Abuse it

Employers in Malaysia may assess whether a sick-leave claim meets legal, contractual and procedural requirements, but they should not reject a genuine MC based only on suspicion or personal preference.

A clear sick-leave policy, accurate leave records and a consistent verification process can help businesses manage absenteeism while protecting employee rights. 

At TopBusiness, our business news site is dedicated to helping both employees and employers access the insights and knowledge they need to make better workplace and business decisions. If you’re still not sure about your sick leave policy, always ask HR!

Disclaimer: This article provides general information about Malaysian employment law and HR practices as at August 2026. Employers and employees should consult the relevant Labour Department or a qualified Malaysian employment lawyer where a dispute or uncertainty arises.