Employment Law
(Unlawful Dimissal)

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 an employee’s employment without just cause or excuse.

Under the IRA, an employee who believes they have been unlawfully dismissed may file a claim with the Department of Industrial Relations (DIR) within 60 days of the dismissal. The DIR will then attempt to resolve the dispute through conciliation. If conciliation is unsuccessful, the case may be referred to the Industrial Court for adjudication.

In determining whether a dismissal was unlawful, the Industrial Court will consider a variety of factors, including the reasons for the dismissal, whether the employee was given adequate notice, and whether the employer followed proper procedures in dismissing the employee. If the court finds that the dismissal was unlawful, it may order the employer to reinstate the employee or to pay compensation to the employee.

It is important to note that there are certain types of dismissals that are considered to be lawful under Malaysian law, such as dismissals for poor performance or misconduct. However, the employer must be able to demonstrate that the dismissal was for a valid reason and that proper procedures were followed. Additionally, certain categories of employees, such as those who are members of a union or who are on medical leave, are afforded additional protections against dismissal.

If an employee believes they have been unlawfully dismissed, it is recommended that they seek the advice of an experienced employment lawyer, who can advise them on their rights and options under Malaysian law.

Written by Lawyer Maxine Khoo