The Shock of Dismissal

Few experiences are more distressing than being told you no longer have a job. For many employees, dismissal comes without warning—a short meeting with HR, a letter handed across the table, and suddenly the stability of income and dignity of work are gone. Some employees accept it silently, assuming nothing can be done. Others feel deep anger and confusion. The key question is this: was the dismissal lawful, or was it wrongful?

In Malaysia, employment law provides protections for employees against arbitrary or unfair termination. If you suspect you have been wrongfully dismissed, there are concrete steps you can take to safeguard your rights.

What Counts as Wrongful Dismissal?

Under Malaysian law, all dismissals must be based on “just cause and excuse.” This means that employers must have valid reasons, such as proven misconduct, poor performance (after warnings and opportunities to improve), or genuine redundancy supported by business needs.

Dismissal becomes “wrongful” when an employer terminates without valid reason or without following due process. For example:

• You were dismissed without any explanation.
• You were terminated for misconduct but were never given a chance to defend yourself.
• Your role was made redundant but the company immediately hired someone else in the same position.
• You were pressured to resign against your will.

These are classic red flags of wrongful dismissal.

First Steps After Dismissal

The first and most important step is not to panic. Take time to carefully read your termination letter. Note the stated reason for dismissal, the effective date, and whether you were given notice or compensation in lieu of notice.

Next, gather your records. Keep copies of your employment contract, payslips, warning letters (if any), performance reviews, and relevant emails or messages. Documentation is vital in proving whether the dismissal was fair or not.

It is also important to avoid rash actions—do not lash out at your employer or destroy evidence. Stay calm and focus on preserving your rights.

Filing a Claim

In Malaysia, employees who believe they were wrongfully dismissed can file a representation under Section 20 of the Industrial Relations Act 1967. This must be done within 60 days from the date of dismissal. Missing this deadline may result in losing your right to claim.

Once the claim is filed, the Industrial Relations Department will attempt conciliation between you and your employer. If no settlement is reached, the case may be referred to the Industrial Court, which has the power to order reinstatement or compensation.

What Remedies Are Available?

If the Industrial Court finds that you were wrongfully dismissed, the remedies may include:

• Reinstatement: being restored to your job, with continuity of service.
• Back wages: compensation for the period you were unemployed, usually capped at 24 months.
• Compensation in lieu of reinstatement: if reinstatement is impractical, monetary compensation is awarded instead.

These remedies aim to restore fairness and offset the loss suffered by the employee.

Common Mistakes Employees Make

One common mistake is delaying action. Waiting too long to seek advice or file a claim can be fatal to your case.

Another mistake is resigning voluntarily under pressure. Some employers subtly push employees to “resign gracefully.” If you hand in a resignation letter, it may weaken your ability to claim wrongful dismissal later—unless you can prove it was a case of constructive dismissal.

Finally, some employees fail to keep records. Without evidence, it becomes a battle of words, which is much harder to win.

The Importance of Legal Advice

Employment law is technical, and every case is fact-specific. What looks like wrongful dismissal at first glance may turn out to be legally justified—and vice versa. Speaking to a lawyer or union representative early can help you understand your chances and avoid costly mistakes.

A lawyer can also assist in drafting your claim, representing you in conciliation, and presenting evidence effectively in the Industrial Court.

Final Thoughts

Being dismissed can feel like the end of the world, but the law in Malaysia provides protections that many employees do not realise they have. If you believe you have been wrongfully dismissed, act quickly, gather your evidence, and seek proper advice.

Above all, remember this: losing a job unfairly is not just about income—it is about dignity and justice. By standing up for your rights, you not only protect yourself but also contribute to a fairer workplace for everyone.

✍️ Written by Lawyer Khoo, Partner at Ng, Zainurul, Seke & Khoo