Can private companies choose not to observe optional holidays?

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Private Companies' Discretion on Optional Public Holidays

For employees in the private sector, whether an optional public holiday is observed is ultimately determined by their employer. The Employment Act 1955 provides a framework for how companies can manage such holidays, particularly when they coincide with other public holidays. This flexibility allows employers to make arrangements that suit their operational needs, while also considering employee agreements.
Employer's Decision on Observance

The observance of the Prophet Muhammad's Birthday, designated as an optional public holiday for 2024 on September 16, rests with individual private companies. If an employer has previously selected this day as one of their company's designated public holidays, they are then obligated to provide an alternative holiday. This alternative is specifically stipulated as September 17.
Alternative Holiday Arrangements

In instances where a company has designated the Prophet Muhammad's Birthday as a public holiday, employers possess the option to offer a paid day off on a different date instead of September 17. However, this alternative arrangement is contingent upon the agreement of the employees. This provision under the Employment Act 1955 allows for negotiation between employers and their staff regarding holiday scheduling.
Delineation of Public Holidays

It is important to distinguish between compulsory and optional public holidays. Malaysia Day, observed on September 16, is a compulsory public holiday for which employees are entitled to a day off and this cannot be substituted with another date. In contrast, the Prophet Muhammad's Birthday, which also falls on September 16 this year, is classified as an optional public holiday, granting employers discretion in its observance or substitution.

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Can private companies choose not to observe optional holidays?

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