Understanding Unfair Dismissal in Malaysia: Your Rights and Recourse with Employment Law in Malaysia
- Employment Law Malaysia
- Apr 11
- 4 min read
Updated: Apr 14
by : EMPLOYMENT LAW MALAYSIA
Understanding Unfair Dismissal in Malaysia: Your Rights and Recourse with Employment Law in Malaysia
Navigating labour law in Malaysia can be complex, especially when dealing with employment termination. At Employment Law Malaysia, a trusted employment law advisory firm in Kuala Lumpur, we specialize in helping both employers and employees understand their rights under the law. This guide explores unfair dismissal in Malaysia, offering insights into your legal recourse and how our experienced employment lawyers in Malaysia can assist.
What Constitutes Unfair Dismissal?
Under Section 20(1) of the Industrial Relations Act 1967, unfair dismissal occurs when an employee is terminated without "just cause or excuse." Proving such claims requires a nuanced understanding of employment regulations, which is why engaging an experienced employment lawyer Malaysia is crucial.
Just Cause or Excuse: Common Grounds for Dismissal
1. Poor Work Performance
In I.E. Project Sdn. Berhad v Tan Lee Seng, it was established that unsatisfactory performance can be a valid reason for dismissal. However, employers must first issue proper warnings and provide opportunities for improvement. If your dismissal lacked due process, consult an employee rights lawyer Malaysia to protect your legal interests.
2. Misconduct
According to Section 14(1)(a) of the Employment Act 1955, misconduct—such as insubordination, absenteeism, or harassment—may justify dismissal. In Syarikat Kenderaan Kelantan Sdn Bhd v Transport Workers Union, misconduct was defined as a breach of accepted work practices. If you were dismissed due to unverified misconduct, our workplace discrimination lawyer Malaysia team is here to support you.
3. Retrenchment
Retrenchment is allowed for genuine redundancy. The case of William Jacks & Co (M) Sdn. Bhd. v S. Balasingam clarified that it must be conducted fairly and transparently. An experienced industrial relations lawyer Malaysia will help ensure compliance with Malaysian retrenchment laws and prevent abuse.
Can Employers Dismiss Without Just Cause?
No. Malaysia upholds employee tenure protections. The ruling in Hong Leong Equipment Sdn Bhd v Liew Fook Chuan reaffirmed that dismissal requires "just cause or excuse." This is where an employment contract lawyer Malaysia can examine your terms of service and defend your legal rights.
What to Do If You’ve Been Unfairly Dismissed
Victims of unfair dismissal can submit a representation to the Director General of Industrial Relations under Section 20(1) of the Industrial Relations Act 1967 within 60 days of termination. Missing this deadline may forfeit your claim, so timely action is essential.
Burden of Proof and Remedies
The burden lies on the employer to prove that the dismissal was justified. In Ireka Construction Berhad v Chantiravathan A/L Subramaniam James, the court emphasized this principle. Remedies include:
Reinstatement (though rarely granted)
Compensation in lieu of reinstatement
Back wages and benefits
Our team of wrongful termination lawyer Malaysia team will guide you through the process and advocate for fair outcomes.
Beyond the Industrial Court
Although most unfair dismissal cases go to the Industrial Court, civil courts may also be appropriate, as seen in Gajanan Y Bhide v MVE Technologies Sdn Bhd. Our lawyers assess the best legal forum to protect your interests.
Why Choose Lui & Bhullar?
At Employment Law Malaysia we are a premier employment law advisory firm in Kuala Lumpur offering comprehensive employment law advice Malaysia. Whether you're looking for an employment lawyer Malaysia, a wrongful termination lawyer Malaysia, or simply searching for employment lawyers near me, our team is ready to support you.
We also have dedicated specialists including:
Employment contract lawyer Malaysia
Employee rights lawyer Malaysia
Workplace discrimination lawyer Malaysia
Industrial relations lawyer Malaysia
Our lawyers understand the intricacies of labour law Malaysia and work tirelessly to protect your rights.
Conclusion
The legal landscape for unfair dismissal in Malaysia is shaped by robust statutes and case law that protect employee rights. Whether you’re an employer needing guidance or an employee facing termination, expert legal advice is vital. Contact Employment Law Malaysia today for trusted support from Malaysia’s leading employment lawyers.
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.
Explore our expertise on:✔ Understanding the Employment Act 1955 – Your guide to employee protections and key legal provisions.✔ Contract vs. Permanent Employment in Malaysia – Understand your rights and obligations.✔ Probation Period in Malaysia – Know the rules on performance reviews and terminations.✔ Working Hours, Overtime, and Rest Days – Ensure compliance with Malaysian employment law.✔ Annual Leave, Medical Leave & Public Holidays – Discover your full legal entitlements.✔ Wrongful and Unfair Dismissal, Constructive Dismissal, and Dismissal for Misconduct – Learn how the law protects you.✔ Resignation vs. Termination – Know the difference and what your rights are.✔ EPF, SOCSO & EIS Contributions, Maternity and Paternity Leave, and Minimum Wage Laws – Understand your compensation and benefits.✔ Employment Contracts in Malaysia – Key clauses and red flags employees should be aware of.✔ Part-Time vs. Full-Time Employment Rights, Sexual Harassment, Whistleblower Protection, Remote Work, and Flexible Work Arrangements – Stay informed on modern workplace issues.✔ Industrial Relations and Industrial Court Disputes – Get help from a trusted industrial relations lawyer in Malaysia.
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