Employee Absenteeism: What Can Employers Do?

Written by: Izz Murtada

Every workplace has days when someone does not come in. Sometimes it is a fever. Sometimes it is a family matter. But when absence happens again and again, it can slow down the team and stress everyone. This article explains what the Employment Act 1955 (Act 265) says, in simple words, so employers know what they can do and what they must do.

 

1. What is absenteeism?

Absenteeism means an employee is often away from work when they are supposed to be there. One day off for a good reason is normal. Absenteeism is when it becomes a pattern, especially when the employee does not tell the employer or has no good reason.

It is also different from approved leave. Annual leave, sick leave with a proper medical certificate and public holidays are all part of an employee’s rights. Those are not absenteeism.

 

2. Common reasons for employee absence

People stay away from work for many reasons. Some are fair, and some need a talk.

• Illness. Fever, flu, injury or a hospital stay.
• Family matters. A sick child, an elderly parent who needs care, or a family emergency.
• Transport problems. A broken car, a missed bus or bad flooding.
• Stress or low morale. Heavy workload, unhappy staff or conflict with a boss or colleague.
• No interest in the job. Some staff simply stop caring and stay away.

It helps to find out the real reason first. A kind question like “Is everything okay?” can solve a problem before it grows.

 

3. When does absence become misconduct?

The Act gives clear guidance here.

Sick leave rules (Section 60F). An employee gets paid sick leave after seeing a registered doctor. The yearly amount depends on how long they have worked for the company:

• 14 days if employed for less than 2 years
• 18 days if employed for 2 years but less than 5 years
• 22 days if employed for 5 years or more
• Up to 60 days a year if they need to be hospitalised

But there are two conditions. If the sick leave is not certified by a doctor or dentist, or if the employee does not tell the employer (or at least try to tell them) within 48 hours of the sick leave starting, the Act treats it as absence without permission and without a good excuse.

Absent for more than two days (Section 15). An employee is seen as having broken their contract if they are absent for more than two working days in a row without getting leave first. The only exception is when they have a good reason and they told the employer, or tried to tell the employer, as early as they could.

Misconduct (Section 14). Staying away from work without a good reason can be treated as misconduct. The Act allows an employer to act on misconduct, but only after a proper inquiry. Which brings us to the next part.

 

4. How should employers handle repeated absence?

Fairness is the most important thing. Here are practical steps that fit what the Act says.

1. Keep good records. Write down the dates of absence, the reasons given and any medical certificates received.
2. Talk to the employee. Ask why it is happening. There may be a problem you can help with.
3. Give a written warning or show-cause letter. Let the employee explain in writing.
4. Hold a proper inquiry. The Act says an employer can only punish for misconduct “after due inquiry”. Let the employee tell their side of the story.
5. Choose a fair action. Under Section 14, the employer can dismiss without notice, downgrade the employee, or give a lesser punishment. If the punishment is suspension without wages, it cannot be more than two weeks.
6. Take care during the inquiry. The employer may suspend the employee for up to two weeks during the inquiry, but must still pay at least half of the wages. If no misconduct is found, the full wages must be paid back immediately.

One more point to remember. An employee who is unhappy with a dismissal for misconduct can make a complaint to the Director General of Labour within 60 days. The Director General can look into the case and confirm or cancel the employer’s decision. So always follow the proper steps and keep your paperwork ready.

Also note that the Act says wages are not payable for time an employee spends in prison or in custody, or attending court (unless as a witness for the employer). Please also check if your staff are covered by the Act, as it applies to employees earning up to RM4,000 a month and to manual workers.

 

5. How can companies reduce absenteeism?

Stopping absenteeism before it starts is better than punishing it later.

• Make the rules clear. Put the leave and absence rules in writing, and explain them to every new staff member.
• Teach the reporting steps. Tell staff exactly who to call or message, and by when.
• Be fair and consistent. Treat everyone the same way, no matter their race, age or position.
• Look after your people. Fair workloads, thank you words and a friendly workplace make people want to come to work.
• Be flexible where you can. A little understanding for real family problems builds loyalty.
• Follow up early. Talk to staff after the first or second unexplained absence, not after the tenth.

 

Final thoughts

Absenteeism can be tricky because you want to be fair to your staff and also protect your business. The Employment Act gives a clear path: know the leave rules, ask for proper notice, hold a fair inquiry, and keep good records.

If your company needs help writing absence policies, preparing show-cause letters or handling inquiries the right way, Kita Strategies is here to help. As an HR consulting company in Malaysia, we work with employers every day to build fair workplaces and handle people matters with confidence. Feel free to reach out to us for a friendly chat.