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ARTICLE · 14 SEPTEMBER 2021

Dismissing Employees In Malaysia

The COVID-19 pandemic has caused mass redundancies, retrenchment, and dismissals of employees across all sectors of employment locally as well as internationally with the closure and...

MalaysiaEmployment and HR

The COVID-19 pandemic has caused mass redundancies, retrenchment, and dismissals of employees across all sectors of employment locally as well as internationally with the closure and downsizing of businesses. Now more than ever, it is important for employees to arm themselves with knowledge of their legal rights to ensure that they are not unfairly dismissed.

In Malaysia, the law governing the dismissal of employees (and labour law in general) is premised upon the notion of fairness and is a relatively well-balanced system. Employer-employee relationships in Malaysia are governed by the Employment Act 1955 and the Industrial Relations Act 1967.

For context, 'dismissal' or 'termination' refers to when an employer ends the employee's contract of service. In Malaysia, an employer may not dismiss an employee for convenience by relying on the termination clause in an employment contract. The requirements for a lawful dismissal are valid and substantive justifications,

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