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Are Companies Required to Observe Additional / Special Public Holidays?

When an additional or special public holiday is announced, one common question among employers and employees is: Are private-sector companies required to observe it?
Not all additional public holidays are treated in the same way. Companies should first determine whether the holiday is declared under Section 8 or Section 9, and review the requirements under the Employment Act 1955, together with the company’s Employment Contract / Company Policy.

Section 8 Public Holiday

Who declares it?
The Federal Government, such as the Prime Minister or Federal Cabinet.

Examples:
General elections, special national events, etc.

Is the company required to observe it?
Yes. Whether the Employment Contract or Company Policy provides for all public holidays or only a limited number of public holidays, the company must observe the holiday in accordance with Section 60D(1)(b) of the Employment Act 1955.

Section 9 Public Holiday

Who declares it?
The State Government, such as the State Minister or State Executive Council.
Examples:
State elections, sporting achievements, etc.
Is the company required to observe it?
If the Employment Contract or Company Policy provides for all public holidays, the company should observe the holiday in accordance with the relevant contractual terms or company policy.
If the Employment Contract or Company Policy only provides for a limited number of public holidays, a Section 9 public holiday does not automatically fall within those provisions and is therefore not necessarily binding under the Employment Contract or Company Policy.

What Should Employers Take Note Of?

When an additional or special public holiday is announced, employers should not assume that every declared public holiday automatically applies to the private sector.
Instead, companies should first check:

  1. Whether the holiday is declared under Section 8 or Section 9
  2. The provisions in the Employment Contract
  3. The provisions in the Company Policy

Understanding the legal basis of the holiday declaration and reviewing the company’s employment terms will help employers determine whether the additional or special public holiday must be observed.

Important: This explanation applies solely to the Employment Act 1955.

****Data updated on 26.08.2026