For Malaysian organisations struggling with employees who don’t know what “on time” means, a clear Attendance & Punctuality Policy sets clear expectations from day one, gives managers objective tracking standards, and prevents “I didn’t know” disputes.
Below, our guide breaks down what to include in your Attendance & Punctuality Policy to enforce consistency while accommodating remote work and flexible arrangements.
Punctuality under employment law
The Employment Act 1955 allows employers to set working hours but does not prescribe specific rules on lateness, which means employers have flexibility to set their own standards.
Most employment contracts include a working hours clause (e.g., “9:00am to 6:00pm, Monday to Friday”) but rarely explain attendance procedures in detail.
An Attendance & Punctuality Policy fills the gaps by explaining how attendance is tracked, what standards apply, and how records are maintained.
Main benefits
A properly structured Attendance & Punctuality Policy protects your business in three ways.
Creates consistent standards across teams
Without written attendance rules, different managers apply different standards, creating inconsistency and perceptions of unfair treatment.
Provides documentation for performance decisions
Attendance patterns are relevant during probation reviews and performance appraisals, and without proper records, employers cannot objectively demonstrate concerns or patterns.
Prevents “I didn’t know” disputes
When attendance expectations are informal or unwritten, employees may genuinely not understand what is considered acceptable, creating confusion when managers later raise concerns.
Essential terms
Definition of attendance and working hours
The policy should clearly define what it means to be “present” and “on time.”
The policy should state:
- official working hours
- method of recording attendance
- whether a grace period applies (e.g., arriving by 9:15am is considered on time)
- whether core hours apply (e.g., must be present 10:00am-4:00pm, flexible arrival/departure otherwise)
- how lateness or early departure is recorded
Reporting absences and leave application
Clear absence reporting procedures prevent confusion and ensure proper coverage.
The policy should specify:
- how far in advance planned leave must be requested
- who to notify for unplanned absences
- by what time notification must be given
- acceptable methods of notification
- documentation requirements (e.g., medical certificate for sick leave)
Expectations for remote and hybrid workers
With the rise of work-from-home arrangements, attendance tracking has become more complex.
The policy should clarify:
- how WFH employees demonstrate “attendance” (logged into systems, online status set to “available”)
- expected response times during work hours
- how attendance is recorded without physical clock-in systems
Consequences for lateness
The policy should clarify how persistent lateness is addressed while staying within legal boundaries.
What employers CAN do:
- Document lateness patterns - Maintain accurate attendance records for performance reviews
- Performance management - Address concerns through supervisory discussions and feedback
- Formal warnings - Issue warning letters for persistent lateness that affects work performance
- Probation implications - Factor attendance into confirmation decisions during probation assessment
- Performance reviews - Consider attendance as part of annual appraisals and promotion decisions
No deducting salary for lateness!
Deducting salary for lateness is generally not permissible under Malaysian employment law. The Employment Act strictly regulates permissible salary deductions under Section 24, and “fines for lateness” do not fall within allowed categories.
Employers cannot arbitrarily deduct wages for lateness (e.g., deducting RM50 for arriving 15 minutes late).
Special considerations
Flexible working arrangements
Sections 60P and 60Q of the Employment Act allow employees to apply for flexible working arrangements, and your policy should acknowledge that approved flexible arrangements may have modified attendance expectations while maintaining accountability standards.
Religious and cultural accommodations
Malaysian workplaces should accommodate reasonable religious observances, such as Friday prayers.
Probationers and new hires
Attendance expectations should be the same for probationers and confirmed employees, with attendance patterns reviewed as part of probation assessment, ensuring new hires understand that punctuality and reliability are valued from day one.
Shift workers and non-standard hours
For shift-based operations, consider addressing shift-swapping procedures, consequences of no-shows, clock-in requirements at shift changes, and handover procedures.
Protect your business with a tailored policy
A clear Attendance & Punctuality Policy ensures attendance is managed fairly across your organisation. If you are looking to formalise your policy or update an existing framework, let us draft clear attendance terms that work with your employment contracts and operational needs
