Understanding Constructive Dismissal in Malaysia: Claiming Your Rights with Employment Law Malaysia

By EMPLOYMENT LAW MALAYSIA

Understanding Constructive Dismissal in Malaysia: Claiming Your Rights with Employment Law Malaysia

Constructive dismissal can be a complex area of labour law Malaysia. At Employment Law Malaysia, a leading employment law advisory firm in Kuala Lumpur, we provide expert guidance on this crucial aspect of employment law. If you feel you've been forced to resign due to your employer's actions, or if you're an employer facing such a claim, understanding constructive dismissal is essential.

What is Constructive Dismissal?

Constructive dismissal occurs when an employee resigns because their employer has fundamentally breached their employment contract Malaysia. This breach must be so severe that it leaves the employee with no reasonable alternative but to resign. Essentially, the employer's actions effectively terminate the employment relationship, even without a formal dismissal.

The Legal Foundation: Wong Chee Hong v Cathay Organisation (M) Sdn Bhd

The landmark case of Wong Chee Hong v Cathay Organisation (M) Sdn Bhd established the common law principle of constructive dismissal. It clarifies that an employee can terminate their contract if the employer breaches a fundamental term or demonstrates an intention to no longer be bound by it. For detailed employment law advice Malaysia, consult our experienced team.

Proving Constructive Dismissal: The Employee's Burden

As per Yew Mun Khean v Kumpulan Liziz Sdn Bhd, the burden of proof rests with the employee. They must demonstrate that the employer's actions constituted a fundamental breach of contract. The "contract test," not the "unreasonableness test," is applied.

The Anwar Abdul Rahim v Bayer (M) Sdn Bhd Test

The Anwar Abdul Rahim v Bayer (M) Sdn Bhd case outlines the key elements for a successful constructive dismissal claim:

• The employer breached a fundamental contract term or indicated an intention to abandon the contract.

• The breach was significant enough to justify resignation.

• The employee resigned in response to the breach, not for unrelated reasons.

• The employee acted promptly after the breach. If you're looking for an employment lawyer Malaysia to help you with this, we can help.

Examples of Fundamental Contract Breaches:

• Non-payment of salary:

  Tan Kok Chai v Mega 9 Housing Sdn Bhd confirms this as a fundamental breach.

  
  

• Unilateral pay cuts:

  As seen in North Malaysia Distributors Sdn Bhd v Ang Cheng Poh, this is a clear breach.

  
  

• Baseless demotions:

  Ang Beng Teik v Pan Global Textile Bhd Penang treats demotion as potential dismissal.

  
  

• Mala fide transfers or job scope changes:

  Govindasamy Munusamy v Industrial Court Malaysia & Anor highlights the importance of bona fide transfers.

Prompt Action is Crucial

Employees must act promptly after a breach. Delay can be interpreted as acceptance of the breach, as illustrated in CCM Fertilizers v Peter Shanta Arthur Sukumar.

Proving Constructive Dismissal Doesn't Guarantee Liability

Even if constructive dismissal is proven, the employer can still argue that there was "just cause or excuse" for dismissal, as per Wong Chee Hong. However, in many cases, proving constructive dismissal also indicates an unfair dismissal Malaysia. If you need a wrongful termination lawyer Malaysia, we can help.

Taking Action: Industrial Court Claims

Employees believing they've been constructively dismissed must file a complaint with the Director General of Human Resource within 60 days, as per Section 20 of the Industrial Relations Malaysia Act 1967. This leads to a claim in the Industrial Court.

Remedies and Conclusion

Remedies for successful constructive dismissal claims are similar to unfair dismissal Malaysia claims. Employers and employees should adhere to their employment contract Malaysia terms. Employers should seek legal advice before actions like demotions or pay cuts, and if facing a constructive dismissal claim, should seek immediate legal representation.

Why Choose Employment Law Malaysia?

As your employment contract lawyer Malaysia and employee rights lawyer Malaysia, we understand the complexities of constructive dismissal. If you need employment lawyers near me Malaysia or require assistance with workplace discrimination lawyer Malaysia cases, our team is ready to provide expert legal support. We also provide industrial relations lawyer Malaysia services.

Employment Law Malaysia: Your Experts in Labour Law

Employment Law Malaysia is a premier employment law firm in Kuala Lumpur, specializing in:

• Labour law Malaysia compliance for employers.

• Employment contract lawyer in Malaysia services for drafting and reviewing contracts.

• Industrial relations lawyer in Malaysia assistance for workplace disputes.

• Wrongful termination lawyer in Malaysia services for unfair dismissal claims.

• Workplace discrimination lawyer in Malaysia cases, ensuring fair treatment in the workplace.

• Employment lawyers near me search solutions for quick access to expert legal support.

Whether you're dealing with salary disputes Malaysia, overtime pay Malaysia, maternity leave Malaysia, sick leave Malaysia, workplace harassment Malaysia, discrimination at work Malaysia, or retrenchment law Malaysia, our lawyers are here to protect your employment rights Malaysia.

If you’re wondering “what are my rights if I am fired in Malaysia?” or “what is the Malaysian employment act?” — reach out to Employment Law Malaysia for trusted, actionable legal help today.

Click here to contact us for a Free Consultation

At www.employmentlawmalaysia.com, we are your dedicated employment law firm in Kuala Lumpur, offering expert employment law advice in Malaysia for both employers and employees. Our experienced team includes top-rated employment lawyers in Malaysia, including specialists in wrongful termination, employment contracts, workplace discrimination, and employee rights.

Whether you're looking for an employment contract lawyer in Malaysia, a wrongful termination lawyer in Malaysia, or a workplace discrimination lawyer in Malaysia, our firm is here to help. We are passionate about upholding labour law in Malaysia, protecting clients through every stage of employment—from probation periods, resignation, and termination, to retrenchment laws in Malaysia and industrial court proceedings.

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