Case Background & Strategy

Unfair dismissal is one of the most searched employment law topics in Malaysia, and for good reason. Many employees are let go without ever being told a proper reason, and assume there is nothing they can do. In reality, Malaysian law gives workers strong protection against being sacked unjustly. This guide explains what unfair dismissal means, gives clear examples, and sets out the rights you have.

What does unfair dismissal mean?

Unfair dismissal means being terminated without just cause or excuse. The protection comes from Section 20 of the Industrial Relations Act 1967. The law treats your job almost like a property right, so an employer cannot simply dismiss you at will, even if your contract allows termination by notice.

Crucially, paying notice or salary in lieu of notice does not make a dismissal fair. The employer must still show a genuine reason and a fair process. The burden of proof lies on the employer to justify the dismissal, not on you to prove it was unfair.

What counts as a dismissal?

The term dismissal is given a wide meaning. It covers far more than just being told you are fired, including:

• Termination for alleged misconduct or poor performance
• Non-confirmation of a probationer
• Retrenchment or redundancy
• Forced resignation (constructive dismissal)
• Non-renewal of a genuine permanent role disguised as a fixed-term contract

Common examples of unfair dismissal

• Being sacked with no reason, or only a vague one like restructuring
• Dismissal for poor performance with no warnings or chance to improve
• Termination for misconduct without any inquiry or chance to explain
• A redundancy where the role still exists or is refilled soon after
• Dismissal connected to pregnancy, union activity, or whistleblowing

Who is protected?

The Act protects any workman, and the definition is broad. There is no salary ceiling, no minimum length of service, and probationers are covered too. This means even senior managers and short-service employees can bring a claim.

What are your rights if you are unfairly dismissed?

If you believe you were dismissed without just cause or excuse, you can lodge a written representation with the Director General of Industrial Relations within 60 days of your dismissal. If your claim succeeds, the Industrial Court can order reinstatement, or compensation in lieu of reinstatement plus back wages.

Frequently Asked Questions

Is being dismissed with notice always fair?

No. Even where your contract allows termination by notice, the courts have held that notice alone is not just cause or excuse. The employer must still justify the dismissal.

Do I need a lawyer to claim?

Not strictly, but legal advice helps, especially before signing any settlement. Many claims are resolved at conciliation before reaching the Industrial Court.