Employment Law
(Legal Process for Unfair Dismissal Claim In Malaysia)
Legal Process for Unfair Dismissal Claims
Legal Process for Unfair Dismissal Claims
In Malaysia, an employee who believes they were unfairly dismissed can file a complaint with the Industrial Relations Department. Here’s an overview of the process:
Filing a Representation: The employee must file a representation for reinstatement under Section 20 of the Industrial Relations Act 1967 within 60 days of the dismissal. The request for reinstatement must be submitted to the Industrial Relations Department.
Conciliation Meeting: The Industrial Relations Department will arrange a conciliation meeting between the employer and employee to resolve the matter amicably. If both parties reach an agreement, the claim is settled without further action.
Referral to the Industrial Court: If conciliation fails, the case is referred to the Industrial Court, where it will be adjudicated. The court examines evidence from both parties, including documentation of the reasons for dismissal and any procedures followed.
Court Decision: The Industrial Court may order reinstatement of the employee or compensation if it finds that the dismissal was unfair. Compensation is typically calculated based on the employee’s length of service and other relevant factors.
Employer Responsibilities to Avoid Unfair Dismissal Claims
To minimize the risk of unfair dismissal claims, employers should follow best practices in termination and disciplinary actions:
Establish Clear Grounds for Dismissal: Ensure there is a valid reason for dismissal, such as documented poor performance or verified misconduct.
Follow Due Process: Conduct a fair investigation and hold a due inquiry if the dismissal is related to misconduct. Allow the employee to present their defense, and document all proceedings thoroughly.
Adhere to Retrenchment Guidelines: In cases of retrenchment, apply fair selection criteria, provide adequate notice, and offer retrenchment benefits as required under Malaysian law.
Avoid Discriminatory Practices: Ensure that termination decisions are based on objective criteria and not influenced by discriminatory factors like race, religion, or gender.
Consult Legal Advice: If unsure about termination procedures, seek legal consultation to ensure compliance with Malaysian employment laws and reduce potential risks.
Employee Rights in Unfair Dismissal Cases
Employees have several rights under Malaysian law when facing potential unfair dismissal:
Right to Reinstatement or Compensation: The Industrial Court may order either reinstatement or compensation if it finds that the dismissal was unfair.
Right to a Fair Hearing: Employees accused of misconduct are entitled to a fair inquiry, where they can defend themselves and present evidence.
Right to Seek Redress: Employees can file for unfair dismissal within 60 days if they believe they were dismissed without valid cause.
Right to Legal Representation: Employees may seek legal representation to strengthen their case and ensure they receive fair treatment.
How Our Law Firm Can Assist with Unfair Dismissal Matters
At Ng, Zainurul, Seke & Khoo, we provide comprehensive support to both employers and employees in navigating unfair dismissal claims:
For Employers: We assist in reviewing dismissal procedures, conducting fair inquiries, and ensuring legal compliance to minimize risks. Our team can help draft show-cause letters, guide you through retrenchment exercises, and represent you in the Industrial Court if a claim arises.
For Employees: If you believe you have been unfairly dismissed, we can help assess your case, guide you through the claim process, and provide representation in the Industrial Court to secure fair treatment.
Conclusion
Unfair dismissal is a serious matter that can lead to costly legal consequences and damage to a company’s reputation. By following fair practices and legal guidelines, employers can avoid these risks and maintain a positive work environment. For employees, understanding your rights is crucial to ensuring fair treatment in the workplace.
For expert guidance on unfair dismissal claims or other employment-related issues, contact Ng, Zainurul, Seke & Khoo. Our experienced team is here to protect your interests and help you navigate Malaysian employment law with confidence.
