Malaysia does not recognize the concept of "termination
simpliciter" (i.e. termination by contractual notice and for
no reason). Accordingly, the termination of employees must be based
on just cause or excuse, failing which, the Industrial Court may
award the employee back wages, and reinstatement, or compensation
in lieu of reinstatement.
Recent Industrial Court Awards:
- A former senior manager was awarded approximately RM1,137,192
for unfair dismissal.
- In reaching this decision, the Industrial Court found that the
employee was employed under a permanent contract of employment
disguised as multiple fixed term contracts of employment. As such,
in that instance, where the employer had informed the employee that
it would not be renewing the employment contract, the termination
of the employee's contract of employment was found to be
without proper reason and without proper notice, an amounted to
"termination simpliciter".
