Understanding Employment Disputes and the Industrial Court Process in Malaysia

BY Employment Law Malaysia

Understanding Employment Disputes and the Industrial Court in Malaysia

Employment disputes have become increasingly common in Malaysia, and resolving these conflicts often involves legal proceedings. Whether related to wrongful dismissal, workplace harassment, breach of employment contracts, or other grievances, these disputes can be heard in either the Labour Court or the Industrial Court, depending on the nature of the issue.

Labour Court vs. Industrial Court

Labour Court	Industrial Court
Deals with cases involving wages, leave, overtime pay, and other benefits.	Handles unfair dismissal, trade union disputes, and other employment-related grievances.

This article focuses on how employment disputes are resolved through the Industrial Court in Malaysia.

Jurisdiction of the Industrial Court

The Industrial Relations Act 1967 (IRA 1967) governs the relationship between employers, employees, and trade unions, providing mechanisms for resolving disputes. With the introduction of the Industrial Relations (Amendment) Act 2020, effective from 1 January 2021, procedures have been updated to streamline the resolution process.

Industrial Court Locations in Malaysia

Malaysia’s Industrial Court operates from five locations: Kuala Lumpur, Johor, Perak, Pahang, Sabah, and Sarawak. Details for each court can be found on the respective official website.

Matters Heard in the Industrial Court

The Industrial Court deals with the following matters:

• Unfair dismissal cases involving employees (referred to as “workmen”).

• Trade disputes between employers and trade unions.

• Applications to interpret, amend, or vary awards or collective agreements.

• Non-compliance complaints related to awards or agreements.

• Cases of victimization due to trade union activities.

How to File a Claim with the Industrial Court

To file a claim for unfair dismissal, employees must file a complaint under Section 20(1) of the IRA 1967. Key requirements include:

• The employee must qualify as a “workman” under the IRA 1967.

• The dismissal must be without just cause or excuse.

• The claim must be filed within 60 days from the date of dismissal.

• The complaint must be addressed to the Director General of Industrial Relations and submitted to the nearest Industrial Relations Department (IRD) office.

Step-by-Step Guide to Filing a Claim

Step 1: Representation to the Director General of Industrial Relations

File Form P1 (Borang P1) along with supporting documents (ID/passport copies and termination letters). Forms can be submitted electronically via email to the nearest IRD office.

Step 2: Conciliation Meeting

The IRD schedules a conciliation meeting between the employer and employee. Legal representation is not allowed at this stage. If both parties reach a resolution, a Memorandum of Agreement is signed. If no resolution is reached, the case proceeds to the Industrial Court.

Step 3: Referral to the Industrial Court

If conciliation fails, the case is referred to the Industrial Court. The case is registered, and a Form F (Notice of Mention of Case) is issued. Both parties can either represent themselves or hire an employment lawyer in Malaysia. Necessary documents for the referral include:

• Statement of Case

• Statement in Reply

• Rejoinder

• Bundle of Documents

• Witness Statements

Step 4: Court Hearing

The hearing proceeds like a trial, with both parties presenting evidence and witnesses. Seeking an employment law firm in Kuala Lumpur ensures professional legal representation during these proceedings.

Step 5: Industrial Court Award

The Industrial Court may order reinstatement or compensation for unfair dismissal. Failure by the employer to comply with the Court’s decision could result in penalties, including fines or imprisonment.

Step 6: Appeal to the High Court

Either party has the right to appeal the Industrial Court’s decision to the High Court within 14 days.

Conclusion

Filing a claim against an employer has been made more straightforward with recent amendments to labour law Malaysia. However, navigating these processes requires expert guidance. Employees should seek employment law advice in Malaysia to fully understand their rights and legal options.

Whether dealing with wrongful dismissal Malaysia, employment contract Malaysia, or industrial relations Malaysia, consulting a wrongful termination lawyer in Malaysia, employment contract lawyer in Malaysia, or industrial relations lawyer in Kuala Lumpur is essential to ensure proper legal representation.

If you need assistance, consider searching for an employment lawyer near me Malaysia to discuss your case and explore the best course of action.

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