Consistent lateness can disrupt productivity, affect team morale, and create unfair workloads. Many employers wonder: can you terminate an employee for always being late?

Before taking action, it’s important to understand what Malaysian labour law says and how to handle habitual lateness legally and fairly.

What the Law Says About Lateness

Under the Employment Act 1955, “lateness” is not the same as “absence.”

• Absenteeism (not turning up for work at all) can be treated as misconduct or job abandonment.

• Lateness (turning up late but still working that day) cannot be directly penalised by deducting salary unless:

  • it is clearly stated in the employment contract or handbook, and

  • the employee has agreed to it in writing.

Otherwise, deducting pay for lateness may be considered an unauthorised salary deduction under Section 24 of the Act.

When Lateness Becomes Misconduct

While one-off lateness may be excusable, habitual lateness can be treated as misconduct — especially if it affects performance or disrupts operations.

To take disciplinary action, employers should:

1. Document each lateness incident (date, time, reason, supervisor remarks)

2. Issue verbal or written warnings as progressive discipline

3. Give the employee a chance to explain (domestic inquiry if serious)

4. Only consider termination after repeated offences and clear evidence of refusal to improve

This due process protects the company from claims of unfair dismissal at the Industrial Court.

Best Practices for Employers

• Set clear policies on punctuality and lateness penalties in your employee handbook

• Communicate expectations during onboarding and team briefings

• Apply policies consistently across all staff to avoid claims of unfair treatment

• Offer flexibility where reasonable (e.g. grace periods, flexi hours, late arrival offset with extended work time)

A clear and transparent approach reduces conflict and protects your business legally.

How Pandahrms Can Help

Managing lateness records manually can be messy and inconsistent.

With Pandahrms, HR and supervisors can:

• Track real-time attendance and lateness logs

• Generate automated lateness reports for disciplinary action

• Maintain digital records as evidence during domestic inquiries

• Apply company lateness policies consistently across the workforce

This ensures every case of habitual lateness is handled fairly, with full documentation to protect your business.

Key Takeaway

You cannot instantly terminate an employee just for being late — unless you have:

• clear lateness policies in place,

• proof of repeated misconduct,

• and you follow fair disciplinary procedures.

Handle habitual lateness with a structured, documented approach. It protects your business and builds a fairer workplace for everyone.