Court Orders Maxis to Pay Ex-Executive Over RM1 Million for Unfair Dismissal

Medical leave is an important employee right, but it must be used responsibly. Under Section 60F of the Employment Act 1955, employees are entitled to paid sick leave when they are properly examined and certified as unfit for work. However, submitting a medical certificate does not protect dishonest conduct or misuse of medical leave.

Employers must also act carefully. An MC should not be rejected, and an employee should not be punished, based only on suspicion. Every case should be assessed according to the law, available evidence and the employee’s explanation.

Paid Medical Leave Under Section 60F

Where hospitalisation is not necessary, the statutory paid sick leave entitlement is generally:

Where hospitalisation is necessary, an employee may be entitled to 60 days of paid hospitalisation leave per calendar year, subject to proper medical certification. Employers may provide more favourable benefits through an employment contract, collective agreement or company policy.

Must Employees Visit the Company’s Panel Clinic?

Section 60F gives priority to a registered medical practitioner appointed by the employer. However, treatment from another registered medical practitioner or medical officer may be relevant where no panel doctor has been appointed or where panel treatment cannot reasonably be obtained because of the nature or circumstances of the illness, time or distance involved.

Therefore, an employer should not automatically reject every non-panel MC. HR should first consider whether the panel clinic was open and accessible, whether urgent treatment was required, the employee’s location and whether a reasonable explanation was provided.

In Silverstone Berhad v Ramal Mutusamy [2011] 3 ILR 477, the dispute involved salary deductions for medical leave obtained from a government hospital instead of the employer’s appointed doctor. The case shows why the employee’s circumstances and explanation should be considered before an MC is rejected or wages are deducted.

The 48-Hour Notification Requirement

An employee must inform or attempt to inform the employer of the sick leave within 48 hours of its commencement. Without notification or a reasonable explanation, the employee may be deemed absent without permission for the relevant days.

Employees should notify their supervisor or HR as soon as reasonably possible and retain proof of the message or call. Employers should also clearly explain who must receive the notification and how it should be submitted.

In Photo Energy 2013 Sdn Bhd v Mohd Hairul Rahman & Anor [2022] 1 LNS 797, evidence showed that the employee’s supervisor had been informed about the hospital medical leave. The decision highlights the need to examine the actual communication before treating an employee as absent without permission.

What May Constitute Medical Leave Abuse?

Possible examples of medical leave abuse include:

• submitting a false, altered or forged medical certificate;
• dishonestly claiming to be unfit for work;
• working elsewhere while claiming paid medical leave;
• providing misleading information to a doctor or employer; or
• using an MC to avoid work without genuine illness.

However, an employee being seen outside the home while on MC does not automatically prove misconduct. The employee may be attending a medical appointment, collecting medication or obtaining essential items. The activity must be assessed against the medical condition, job duties and the employee’s explanation.

In the English case Metroline West Ltd v Ajaj [2015] UKEAT/0185/15/RN, video evidence was found to be inconsistent with the employee’s claimed physical limitations. The case illustrates how dishonestly exaggerating an illness may amount to serious misconduct. Although it is not Malaysian authority, it provides a useful practical example.

How Should Employers Handle Suspected MC Abuse?

Employers should follow a fair and evidence-based process:

1. Review the MC, attendance record, notification time and company policy.
2. Verify whether the clinic issued the MC where there is a genuine reason for concern.
3. Issue a clear show-cause letter and allow the employee to explain.
4. Consider the employee’s evidence and surrounding circumstances objectively.
5. Conduct a domestic inquiry where the allegation is serious or facts are disputed.
6. Impose disciplinary action only when misconduct is proven and ensure the punishment is proportionate.

An employer should avoid deciding guilt in advance, relying only on social-media posts, requesting unnecessary confidential medical information or dismissing an employee for a minor procedural mistake. A rushed or unfair decision may expose the company to a complaint or unfair-dismissal claim.

Conclusion

Medical leave is a statutory entitlement, but employees must obtain appropriate medical certification, notify the employer within the required timeframe and act honestly. Employers must distinguish genuine illness from proven abuse through proper investigation rather than assumptions.

Clear medical-leave procedures, accurate records and consistent disciplinary practices can reduce disputes. Where dismissal is being considered, the employer should obtain professional HR or employment-law advice before making a final decision.

Need professional guidance? HRLaw Training & Consultancy provides practical training and HR and industrial-relations consultation to help employers manage absenteeism, misconduct and disciplinary matters lawfully and confidently.

Legal reference: Employment Act 1955 (Act 265), Jabatan Tenaga Kerja Semenanjung Malaysia