Unpaid Leave? Pay Cut? What Employers Should Do When Staff Have To Serve Community Service Order

The Malaysian Industrial, Commercial & Service Employers Association (MICSEA) has released a press statement providing urgent guidance to employers on managing employees who receive Community Service Orders (CSO) for littering under the Solid Waste Management and Public Cleansing Act 2007 (Act 672).

The move follows recent court cases where individuals were fined up to RM2,000 and ordered to perform community service of up to 12 hours for littering offences. With community service scheduling sometimes coinciding with normal working hours, MICSEA is clarifying the legal and HR requirements for employers.

CSO is Not Imprisonment: Section 23 Does Not Apply

MICSEA emphasises that a Community Service Order is an alternative form of sentencing focused on rehabilitation and social responsibility—it is not equivalent to imprisonment or mandatory court attendance.

Key clarification points for employers:

  • Wage Withholding: Employers are not entitled to automatically withhold wages under Section 23 of the Employment Act 1955, as this section only applies to cases of imprisonment or court attendance, not community service.

Managing Absence: Apply Section 18A(c)

For the period an employee is absent to perform community service, MICSEA advises managing the time under Section 18A of the Employment Act 1955.

  • Unpaid Leave: Since CSOs do not fall under approved paid leave categories, the absence may be reasonably treated as unpaid leave under Section 18A(c), subject to fair and reasonable management practices.
  • Annual Leave: Employees may also apply to utilise their available annual leave to cover their community service obligations, subject to the employer’s approval.

Where the absence is treated as unpaid leave, wage calculation must strictly follow the Section 18A(c) formula:

Monthly Salary ÷ Number of Days in the Month × Eligible Days WorkedA Balanced and Compassionate Approach

MICSEA President, Mr. YK Lai, commented on the issue, urging employers to take a balanced approach: “MICSEA encourages employers to take a balanced approach—to support employees in complying with court orders, while at the same time educating and reminding them about their duty to keep our environment clean and respected. A fair, lawful, and compassionate response helps preserve industrial harmony and strengthens organisational values.

“The Association recommends the following best practices for employers:

  • Verify the court order and community service schedule.
  • Engage the employee in open and honest communication.
  • Consider flexible work arrangements where feasible.
  • Apply wage adjustments strictly in accordance with Section 18A(c).
  • Avoid punitive or arbitrary deductions.
  • Maintain proper documentation.

Beyond legal compliance, MICSEA encourages employers to conduct awareness programmes and reinforce workplace policies to promote cleanliness and civic responsibility among their employees.The statement concludes by reminding employers that a fair, consistent, and legally compliant approach is essential in maintaining industrial harmony.

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