Best Practices For A Domestic Inquiry

Under Malaysian law, where an employee is subject to the Employment Act 1955 ("Act"), it is a statutory obligation imposed on the employer to conduct a "due inquiry" to ascertain whether an employee is guilty of misconduct before an employee can be dismissed or before any other major penalty is imposed (See: Section 14(1) of the Act).

However, Section 14(1) of the Act does not specify what amounts to "due inquiry" or how an inquiry should be conducted.  While "due inquiry" has a different meaning from "domestic inquiry", some people use these words interchangeably. While a domestic inquiry, if done properly, can amount to "due inquiry" under the law, it does not necessarily mean that a full blown domestic inquiry must be conducted in every case.