Company have to pay the medical leave he is entitle. This is under s.60F of the EA1955. If he is an employee as define under schedule 1 of EA, his ordinary rate of pay for the Medical leave per day is calculated as wages/26. He is also eligible to claim for SOCSO. And once he received payment from socso, he has to return whatever the company had pay him during his MC. The company cannot deduct AL for balance of MC i the case where MC is more than what compulsory to be paid under EA. The nature of Annual Leave is there must be a request from the staff to use it. Even if, a staff is under Medical Leave for a year, he is still entitle for unutilised AL. The court had laid this principle in saraswathy lwn Ladang sungai senarut case. Hope this shall help.