I just check with labour office, hospitalisation leave include rest day and PH. However, you may check with labour office. (1B) Where any of the public holidays or any other day substituted therefore as provided in subsection (1) or (1A) falls within the period during which an employee is on sick leave or annual leave to which the employee is entitled under this Act, or falls during the period of temporary disablement under the Workmen’s Compensation Act 1952, or under the Employees Social Security Act 1969, the employer shall grant another day as a paid holiday in substitution for such public holiday or the day substituted therefore. The staff is entitled to another holiday. But the easiest way is to treat MC as cancelled. Just don't record that day's sick leave will do. His sick leave entitlement will not be reduced.