Employment Law Retainer for Employers in Malaysia
Our employment law retainer gives employers and HR teams in Malaysia monthly access to lawyers for advice on contracts, discipline, dismissal and retrenchment, with the scope and fee agreed after an initial discussion. It is also available to employees.
- For employers and HR
- Also open to employees
- Email, calls and meetings
- Online consultations
How We Can Help
- Employment contracts, offer letters and employee handbooks
- Show cause letters, warning letters and domestic inquiries
- Managing misconduct and poor performance fairly
- Retrenchment exercises and voluntary separation schemes
- Sexual harassment complaints and workplace policies
- Unfair dismissal claims and Industrial Court strategy
Explore our employment law guides
Reviewed by Ms. Khoo Ai Theng, Founder, Advocate & Solicitor of the High Court of Malaya. Last updated October 2026.
Why Choose Us?
15+ Years
Legal experience
Legal 500
Asia-Pacific recognition in employment law
60 Days
To file a dismissal claim, s 20 IRA 1967
45 Hours
Maximum weekly hours, Employment Act 1955 s 60A
What does the employment law retainer cover?
The Employment Law Consultation Retainer is run by NZSK’s Employment Department and gives employers monthly access to lawyers for workplace questions, for a fee based on the scope agreed with you. It is built for HR teams and business owners who deal with staff issues every month, and it is also available to employees who want ongoing advice on their own employment.
Under the retainer:
- enquiries sent by email are answered by email
- telephone discussions can be arranged for quick or urgent questions
- physical or virtual meetings can be held when a matter needs a fuller discussion
Typical questions include reviewing an employment contract or employee handbook, drafting a show cause or warning letter, preparing for a domestic inquiry, managing poor performance, planning a retrenchment or voluntary separation scheme, and responding to a sexual harassment complaint or an unfair dismissal claim. Representation at the Industrial Court or in other proceedings is outside the monthly fee and is quoted separately. For our wider practice, see our employment law page.
What changed under the Employment Act 1955?
The Employment Act 1955 (Act 265) sets minimum employment terms in Peninsular Malaysia and the Federal Territory of Labuan; Sabah and Sarawak have their own Labour Ordinances. Since 1 January 2023, when the Employment (Amendment) Act 2022 (Act A1651) and an amended First Schedule came into force, the Act covers every employee with a contract of service, although some provisions, such as overtime, rest day and public holiday pay and termination benefits, apply only to employees earning up to RM4,000 a month and to specified categories such as manual workers.
The main changes for employers are:
- the weekly working hours limit reduced from 48 to 45 hours (section 60A)
- maternity leave increased from 60 to 98 days (section 37), with dismissal of a pregnant employee barred except for misconduct, wilful breach of contract or closure of the business (section 41A)
- seven consecutive days of paid paternity leave for married male employees with at least 12 months’ service (section 60FA)
- a right to apply for flexible working arrangements, which the employer must approve or refuse in writing within 60 days, giving reasons for a refusal (sections 60P and 60Q)
- a new offence of forced labour (section 90B), Director General powers over discrimination disputes (section 69F) and prior approval to employ foreign employees (section 60K)
Employment contracts, handbooks and the minimum wage
Under section 10 of the Employment Act 1955, a contract of service for a specified period of more than one month, or for work expected to take more than one month, must be in writing. A clear contract and an up-to-date handbook are the employer’s first defence in a later dispute. Under the retainer we review:
- offer letters and employment contracts, including probation, notice, confidentiality and restrictive covenant clauses
- handbook policies on discipline, leave, flexible working applications, grievances and sexual harassment
- pay structures, so that basic wages meet the minimum wage
Under the Minimum Wages Order 2024 (P.U.(A) 376/2024), the national minimum wage is RM1,700 a month, or RM8.72 an hour. It applied from 1 February 2025 to employers with five or more employees and to employers in professional activities classified under MASCO, and from 1 August 2025 to all other employers. In Budget 2027, tabled on 9 October 2026, the Government announced an increase to RM2,000 from June 2027 and said micro, small and medium enterprises with annual sales below RM50 million would be exempted. Employers should check the final terms once the new order is gazetted. Our employment contracts and HR guide has more detail.
Show cause letters, domestic inquiries and retrenchment
An unfair dismissal claim often turns on whether the employer followed a fair process, so advice is most useful before a letter goes out. For misconduct, section 14 of the Employment Act 1955 allows an employer to dismiss, downgrade or impose a lesser punishment only after due inquiry. The usual steps are:
- a show cause letter setting out the allegation clearly, with a deadline to respond
- a notice of charge stating the alleged misconduct and the date, time and place of the domestic inquiry
- an inquiry at which the employee can answer the charges, call witnesses and produce documents
- a written finding and a punishment proportionate to the misconduct, from a warning letter to dismissal
The employee may be suspended for up to two weeks on at least half wages during the inquiry. Poor performance is different: the employee should be told the standard expected, warned and given a fair chance to improve. See our misconduct and domestic inquiry guide.
Before a retrenchment, the employer must notify the Labour Department on Form PK at least 30 days in advance; the same form reports a voluntary separation scheme (VSS). Read our retrenchment guide for the benefits payable.
Unfair dismissal claims and sexual harassment complaints
An employee who believes he or she was dismissed without just cause or excuse can file a representation with the Director General of Industrial Relations under section 20 of the Industrial Relations Act 1967 (Act 177) within 60 days of the dismissal. An internal appeal does not stop time running. The same route applies to constructive dismissal, where the employee resigns because the employer has fundamentally breached the contract.
If conciliation fails, the case is referred to the Industrial Court, which can order reinstatement or compensation in lieu, plus backwages capped at 24 months for confirmed employees and 12 months for probationers. An award can be appealed to the High Court within 14 days (section 33C).
For sexual harassment, Part XVA of the Employment Act 1955 requires an employer to inquire into a complaint, or to tell the complainant in writing within 30 days why it will not, and to display an awareness notice at the workplace (section 81H). Failing to inquire carries a fine of up to RM50,000. Separately, under the Anti-Sexual Harassment Act 2022 (Act 840), any person may complain to the Tribunal for Anti-Sexual Harassment, which can award compensation of up to RM250,000 and aims to decide within 60 days of the first hearing.
How NZSK runs an employment law retainer
Every employment retainer starts with an initial consultation, online or in person at our Puchong or Mont Kiara office. We ask about your workforce, the issues HR handles most often and any matter that is already live, and we review your current documents. Useful documents to bring are:
- your standard offer letter and employment contract
- the employee handbook and disciplinary procedure
- recent show cause, warning or termination letters
- details of any complaint, inquiry or claim in progress
We then agree the scope and quote the monthly fee, which depends on headcount, the number of companies or sites, the expected volume of enquiries and the response times you need.
The retainer is handled by our Employment Department, led by partner Khoo Ai Theng (Maxine Khoo), an Advocate & Solicitor of the High Court of Malaya admitted in 2014, who holds Legal 500 Asia-Pacific recognition in employment law. Because our employment lawyers also act in Industrial Court cases, day-to-day advice takes account of how a claim would be argued. Contentious work is quoted separately.
Frequently Asked Questions
An employment law retainer in Malaysia is a monthly arrangement under which an employer pays a law firm for an agreed scope of employment advice. NZSK's Employment Law Consultation Retainer covers enquiries by email answered by email, telephone discussions and meetings on matters such as employment contracts, show cause letters, domestic inquiries, retrenchment and dismissal. Industrial Court representation is quoted separately.
The cost of an employment law retainer in Malaysia depends on the scope agreed: the size of the workforce, the number of companies or sites, the expected volume of HR enquiries and how quickly answers are needed. NZSK quotes the monthly fee after an initial discussion with you. Contentious work, such as representing the company in an Industrial Court case, is outside the monthly fee and is quoted separately.
Yes. NZSK's employment law retainer is built mainly for employers and HR teams, but our Employment Department also offers it to employees who want ongoing advice on their own employment, for example during a performance process, a long-running grievance or a restructuring. The scope and monthly fee are agreed after an initial consultation, and advice is given after we review the employee's actual documents.
Under section 14 of the Employment Act 1955, a Malaysian employer may dismiss an employee for misconduct only after due inquiry, usually carried out through a domestic inquiry at which the employee hears the charges and can answer them. If the dismissal is later challenged, the Industrial Court decides whether the misconduct was proven and whether dismissal was justified, so the inquiry record is important evidence.
In 2026 the minimum wage in Malaysia is RM1,700 a month, or RM8.72 an hour, under the Minimum Wages Order 2024, and it has applied to all employers since 1 August 2025. In Budget 2027, tabled on 9 October 2026, the Government announced an increase to RM2,000 from June 2027, with an exemption for micro, small and medium enterprises with annual sales below RM50 million, subject to the new order.
In Malaysia, an employee who believes he or she was dismissed without just cause or excuse must file a representation with the Director General of Industrial Relations within 60 days of the dismissal, under section 20 of the Industrial Relations Act 1967. An internal appeal does not stop time running. Unresolved claims are referred to the Industrial Court, so employers should keep the dismissal letter, inquiry record and correspondence.
Under the Employment (Termination and Lay-Off Benefits) Regulations 1980, a covered employee with at least 12 months' continuous service is entitled to at least 10 days' wages for each year of service if employed under two years, 15 days for two to under five years and 20 days for five years or more, paid within seven days. Covered employees are generally those earning up to RM4,000 a month and specified categories such as manual workers.
Under Part XVA of the Employment Act 1955, a Malaysian employer who receives a sexual harassment complaint must inquire into it, or tell the complainant in writing within 30 days why it will not, and must take disciplinary action if the complaint is proven. Employers must also display an awareness notice at the workplace. Separately, the complainant may go to the Tribunal for Anti-Sexual Harassment under the Anti-Sexual Harassment Act 2022.
Need regular employment law advice for your HR team?
Book an initial consultation, online or in person at our Puchong or Mont Kiara office, to agree the scope and monthly fee of an employment law retainer. We advise once we have reviewed your documents, such as your contracts, handbook and recent HR letters, at that consultation.
- (+60)12-401 4799 | (+60)3-8060 0267
- [email protected]
Consultation by appointment at Mont Kiara, Kuala Lumpur and Puchong, Selangor, or online.
