procedure to terminate an employee in malaysia


Per section 14 1 a of the Employment Act 1955 one of the procedures that must be conducted before a dismissal for misconduct can be justified is a due inquiry or domestic inquiry. The employer must provide the employee with a termination notice stating the reasons for termination.


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Misconduct Retrenchment Poor performance Retirement The expiry of a legitimate fixed-term contract Resignation and Mutual agreement.

. Handbooks and policies in Malaysia especially where SMEs are concerned do not provide for a proper internal procedure to be followed in the event. Per section 14 1 a of the Employment Act 1955 one of the procedures that must be conducted before a dismissal for misconduct can be justified is a due inquiry or domestic inquiry. If an employee conducted major misconduct or breached the employment contract a fair dismissal should include the following steps.

This post will discuss the end of the employment life cycle the termination of the employment contract or dismissal. What defines the termination of employment in Malaysia. Generally misconduct poor performance and redundancy are accepted as just cause.

Termination may be made in writing or orally and may be addressed to the employees supervisor foreman or other named person. However depending on the grounds for dismissal there are. Then management will inform the accused employee of the decision which is guided.

Termination of Contract of Employment in Malaysia. In Malaysia all employees are protected from unjust dismissal. Per section 14 1 a of the Employment Act 1955.

Has worked for more than five years shall be given the length of notice which is eight weeks. An employee may only be terminated for just cause or excuse. The Department of Labour defines the termination of employment as a cessation of service due to either a company closure or workers redundancy.

In Malaysia any termination of employment must be done with just cause or excuse The following are the most widely recognised types of just cause or excuse for terminating an employment contract. In this series we have addressed the general employment law backdrop in Malaysia legal issues when hiring employees and how to ensure good employee management. Here are a few things about unfair dismissal law in Malaysia.

Are there any procedural requirements for dismissing an employee. Whether an employer is sacking someone on the spot or terminating. In other word redundancy or surplus of labour.

The employee must be given sufficient notice or warning about his poor performance. Hence giving notice of termination to the employees within a reasonable period by the employer is mandatory in Malaysia. In Malaysia all employees are protected from unjust dismissal.

Employers must ensure that the employee is dismissed in a procedurally fair manner. For whatever the reasons a retrenchment exercise was carried out these are 4 basic legal principles that every employers or employee should know. Despite sufficient notice and opportunity the employee failed to improve his work performance.

Where by agreement under the contract of service between the employee and the employer the number of hours of work on one or more days of the week is less than 8 the limit of 8 hours may be exceeded on the remaining days of the week but so that no employee shall be required to work for more than 9 hours in one day or 48 hours in one week. Employee must be given time to give an explanation. Can companies terminate an employee for falling ill and becoming unfit for work.

According to an employment contract either party has the right to terminate the contract with one-month notice in writing or by making payment in lieu of notice. Notice of termination must be given if the termination is not owing to any misconduct or other breach of contract by the employee. They can but a proper process should be followed to avoid such termination being determined as unjust or unfair.

Redundancy as Precondition for Retrenchment. Employers must ensure that the employee is dismissed in a procedurally fair manner. There are several reasons that falls into the definition including mergers acquisitions and corporate restructuring.

Otherwise the maternity allowance may be suspended. Even if the contract of service contains a stipulation that no notice is required for termination of contract the employee is still. An employee must notify her employer 60 days in advance before taking maternity leave.

If the employee is found not guilty the domestic inquiry panel will inform the managing director of its decision. The employee was given reasonable opportunitytime to improve his work performance. Just cause or excuse is not defined by legislation.

Approval of a government agency is not required before a dismissal. It goes without saying that retrenchment is subjected to scrutiny by the Industrial Court of Malaysia.


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