CHINESE NEW YEAR 2026: CAN EMPLOYERS ENFORCE ANNUAL LEAVE DURING A FESTIVE SHUTDOWN?

Date: 9.1.2025

This digital podcast clarifies that Malaysian employers are prohibited from mandating annual leave during temporary business closures or festive periods. While companies may shut down for holidays like Chinese New Year, judicial precedents establish that paid time off is a fundamental right intended for an employee’s personal rest rather than a tool for operational convenience. If a worker is prepared to work but the facility is closed, the commercial risk falls on the employer, who must continue to provide wages without depleting the worker’s leave balance. Ultimately, the text emphasizes that any festive shutdown must involve voluntary agreements and transparent communication rather than unilateral directives. Such legal protections ensure that staff are not unfairly penalized for business disruptions beyond their control.