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Unfair Dismissal Lawyers in Malaysia — Protecting Employee & Employer Rights

If you have been dismissed from your job in Malaysia and believe the dismissal was unfair, unjustified, or procedurally flawed — you have legal rights and a fixed 60-day deadline to assert them. Similarly, if you are an employer defending an unfair dismissal claim in the Industrial Court, the strategy and evidence you present from day one will determine the outcome.

At NZSK, Lawyer Khoo leads our unfair dismissal practice — with a track record of landmark wins for both employees and employers that has been reported in national media and official law reports. Our results include securing RM893,200 for a former senior IT manager against Heineken Malaysia in 2024, and successfully defending Bina Puri Sdn Bhd in a High Court judicial review in 2025. We act from offices in Mont Kiara, KL and Puchong, Selangor.

Why Choose Us?

What Is Unfair Dismissal Under Malaysian Law?

Under section 20 of the Industrial Relations Act 1967, every dismissal in Malaysia must be based on ‘just cause and excuse’. The employer bears the burden of proving, on a balance of probabilities, that:

A valid reason existed for the dismissal — proven misconduct, genuine redundancy, or another substantively valid ground — not a manufactured, exaggerated, or pretextual reason
The reason was the actual reason for the dismissal — the stated reason must be the real reason — using a minor technical ground to disguise the real motive (victimisation, retrenchment avoidance, whistleblower retaliation) will not be accepted by the Industrial Court
The procedure followed was fair — for misconduct cases, a domestic inquiry that follows natural justice principles is typically required. For performance-based dismissals, adequate warning and opportunity to improve must generally be shown

A dismissal is unfair where any of these requirements is not met — where the employer cannot establish just cause, where the process was procedurally unfair, or where the stated reason is not the true reason for the termination.

The Unfair Dismissal Process in Malaysia — Step by Step

File a representation within 60 days — the dismissed employee must file a written representation with the Director General of Industrial Relations (DGIR) under section 20(1A) of the IRA within 60 days of dismissal — this deadline is strict and strictly enforced
Conciliation at the Department of Industrial Relations (DIR) — the DGIR will attempt to conciliate between the parties — many cases resolve at this stage through negotiated settlements
Ministerial reference to the Industrial Court — if conciliation fails, the Minister of Human Resources may refer the dispute to the Industrial Court for adjudication
Industrial Court hearing — both parties present evidence — written submissions, oral evidence, witness cross-examination — and the Industrial Court issues a written Award
High Court judicial review — certain Industrial Court Awards may be challenged by judicial review in the High Court on limited grounds — errors of law, breach of natural justice, jurisdictional errors

Remedies Available in Unfair Dismissal Cases in Malaysia

Where the Industrial Court finds in an employee’s favour, the available remedies are:

Reinstatement — the primary remedy — the employee is restored to their former position on the same terms. The Industrial Court may award reinstatement with or without back wages
Back wages — wages from the date of dismissal to the date of the Award — capped at 24 months’ wages under the Industrial Relations Act
Compensation in lieu of reinstatement — where reinstatement is not appropriate or practicable — typically calculated at one month’s wages per completed year of service

The combined total of back wages and compensation in lieu of reinstatement can be very significant in cases involving senior employees with long service periods — as demonstrated by the RM893,200 award in the Heineken Malaysia case, handled by Lawyer Khoo.

Unfair Dismissal — Our Results

EMPLOYEE WIN

2024

Heineken Malaysia Berhad

Represented a former senior IT manager in an unfair dismissal claim against one of Malaysia’s largest companies. The Industrial Court found the dismissal was without just cause and ordered one of the largest compensation awards in recent years — RM893,200.

Reported nationally in Free Malaysia Today (13 November 2024) — Handled by Lawyer Khoo

RM 893,200

EMPLOYEE WIN

2019

Metronic Engineering Sdn Bhd

Represented a group financial controller dismissed without just cause. The Industrial Court awarded RM178,000 in back wages and compensation, finding significant procedural and substantive flaws in the employer’s termination.

Reported in The Edge Malaysia — Handled by Lawyer Khoo

RM 178,000

EMPLOYER WIN

2025

Bina Puri Sdn Bhd

Successfully defended Bina Puri against a constructive dismissal claim brought as a judicial review in the High Court. The court dismissed the application — ruling that additional duties were within the claimant’s job scope and that the employer had not acted in bad faith.

Hasnah Hashim v. Bina Puri Sdn Bhd & Anor [2025] 3 MELR 660 — Handled by Lawyer Khoo

Claim Dismissed

Frequently Asked Questions

What is 'just cause and excuse' in Malaysian employment law?

'Just cause and excuse' is the legal standard every dismissal in Malaysia must meet under section 20 of the Industrial Relations Act 1967. It means the employer must have a valid substantive reason (misconduct, poor performance, redundancy) and must have followed a fair process in arriving at the dismissal decision. Both elements must be present — a valid reason executed through an unfair process, or a fair process applied to an invalid reason, are both insufficient.

What is the 60-day deadline for unfair dismissal claims?

An employee who believes they have been unfairly dismissed must file a written representation with the Director General of Industrial Relations within 60 days of the date of dismissal. This deadline is strictly enforced — the courts have consistently held that it cannot be extended except in very exceptional circumstances. If you have been dismissed, seek legal advice immediately.

Can I get my job back after unfair dismissal in Malaysia?

Reinstatement — the restoration of the employee to their former position — is the primary remedy available in a successful unfair dismissal claim before the Industrial Court. However, in practice, many successful claimants receive compensation in lieu of reinstatement rather than an actual return to work, particularly where the working relationship has irretrievably broken down. We advise on the likely remedy in your specific case.

I was put on a performance improvement plan (PIP) and then dismissed. Is that unfair dismissal?

Not automatically — but it depends on whether the PIP was genuine or a pretext, whether it was conducted fairly, whether adequate opportunity to improve was given, and whether the dismissal followed a proper process. A dismissal following a PIP can be challenged as unfair where the PIP targets were unreasonable, where insufficient time or support was given, or where the PIP was designed from the outset to build a paper trail for a dismissal that had already been decided. We advise on the specific facts.

Speak to a Employment Lawyer Now!

If you have been dismissed and believe it was unfair, contact NZSK for practical and commercially focused trade mark legal advice. Contact us to arrange a consultation.