Employment & Labour

In Malaysia, the term “constructive dismissal” pertains to an employee’s decision to terminate their employment due to a significant breach of contract by the employer. This breach must be substantial enough to substantially change the fundamental terms of the employment contract, compelling the employee to resign. While there is no direct dismissal by the employer, it can still constitute unfair dismissal due to the actions of the employer, hence the term “constructive” in “constructive dismissal.”

In Malaysia, the termination of employees is subject to specific criteria and is not carried out arbitrarily. It is essential to have clearly defined objectives and selection criteria in place. In essence, there should be a justifiable reason for discontinuing the employment of a particular individual. These same principles apply to the retention of employees as well.

Unfair dismissal claims often aim for reinstatement to their previous position, as stated in Section 20(1) of the Industrial Relations Act 1967 (“IRA”). However, there are instances where reinstatement may not be granted, such as when the claimant reaches retirement age, if the relationship between parties breaks down, or if the job no longer exists.

In Malaysia, the Industrial Relations Act 1967 (IRA) governs the employment relationship between employers and employees, including the issue of unlawful dismissal. Unlawful dismissal occurs when an employer terminates

Hi Everyone welcome back to Guardian of Law!
Today is our first video in the year of 2021 and we are going to talk about Industrial Court?!
Have you ever wonder, after you are wrongfully terminated by your employer and you are wondering what you suppose to do right now to gain back your right?
A former employee whose employment is terminated by the employer may make a representation to the Director General for Industrial Relations (or in layman term pergi Ke Jabatan Perhubungan Perusahaan Malaysia) if he considers that he or she was dismissed without just cause or excuse.