Employee leave management: how it works and what to set up

The leave process, step by step

1. HR defines leave types and entitlements in line with company policy and applicable law.
2. An employee applies for leave, as a full day, half day or multiple days.
3. The system calculates working days used, excluding non-working days and public holidays.
4. The employee's manager approves or rejects the request.
5. Balances update and the leave appears on the team calendar.

Statutory minimums

In Malaysia, the Employment Act 1955 sets minimum leave entitlements for employees it covers, and company policy or contracts can offer more. Entitlements and coverage have changed over time, so confirm current requirements with the Labour Department (JTKSM) or a qualified adviser rather than relying on a summary.

Policy decisions to make before you configure anything

• Which leave types do you offer, and who is entitled to each?
• Does entitlement build up over the year (accrual) or arrive in full up front?
• Can unused leave roll over, and how much?
• Are there periods when leave cannot be taken (blackouts)?
• Who approves leave when a manager is away?

Common problems with manual leave tracking

• Balances drift because half days and public holidays are counted inconsistently.
• Managers approve without seeing who else is away.
• Payroll is prepared without knowing about unpaid leave.
• Nobody can answer 'how many days do I have left?' without asking HR.

Leave in BukuHR

Core includes leave applications, balances, working-day calculations, approvals and a team calendar. Professional adds leave accrual, rollover and blackouts.

Official sources

• Labour Department Peninsular Malaysia (JTKSM)