What Does Sabbatical Leave Mean in Malaysia?

Most of us are familiar with the various leave entitlements available to Malaysian employees, including Annual Leave, Medical Leave, Maternity (or even Paternity) Leave. Most of these are covered under the Employment Act 1955, while other leave entitlements are discussed within employment contracts. 

However, there is a degree of confusion when it comes to sabbatical leave. Do employees get paid on sabbatical leave? Is it a requirement under Malaysian employment law? Why doesn’t everyone have sabbatical leave? 

Let’s clear some of that up with some key things to note about sabbatical leave in Malaysia. 

1. What does sabbatical leave actually mean?

Essentially, a sabbatical is simply a break from work. Sabbaticals are generally taken after an extended period of time working at an organisation, and employees remain employed during sabbatical leave. This time can be used for personal development initiatives, including upskilling, volunteering, or even simply to rest and recharge. 

It’s fairly common to see sabbatical leave offered in the academic field, with universities often providing sabbatical leave to professors after granting them tenure. Sabbatical leave is also sometimes offered as a benefit in other industries, although reports suggest that under 10 percent of employers actually offer this type of leave to their employees — which means sabbaticals might offer a competitive edge for recruiters and employers. 

2. Does employment law in Malaysia cover sabbatical leave?

The Employment Act 1955 does not provide for sabbatical leave, and in general, employment law in Malaysia does not cover sabbatical leave. This means that unless it is stipulated in the employment contract, employees are not entitled to sabbaticals as of right. 

As such, be sure to go through the terms and conditions of employment agreements and leave policies at your company. If you intend to offer sabbatical leave as a benefit, be sure to comprehensively cover all the necessary details before formalising the arrangement black and white. 

3. Do you get paid during sabbatical leave?

You may — or may not — be paid when on sabbatical leave. Some companies may pay you your full salary package even when you’re on leave, although others may only grant employees unpaid sabbatical leave. Other times, you may simply be paid a percentage of your usual salary when on sabbatical. 

Again, there isn’t a hard and fast rule regarding this from a legal standpoint in Malaysia, so be sure to examine the terms and conditions of your company policies and employment contracts to find out more. 

4. Should you grant your employees sabbatical leave? 

It’s understandable why some employers may be reluctant to grant sabbaticals — particularly as these periods can span over months. It can be difficult to plan for an extended period of time without an employee, even more so if the individual plays a crucial role in the day-to-day of the business. 

However, it’s also worth noting that sabbaticals offer a number of benefits to employees, including allowing them to detach themselves from work and to focus on self development — professionally and personally. Meanwhile, employers also stand to benefit, with recharged employees who are more motivated to return to work, while sabbaticals can have a positive impact on talent acquisition at the organisation.