Being terminated from employment can be a distressing experience—especially when the dismissal appears unjust or without proper cause. In Malaysia, employment law offers protection for employees against unfair dismissal, ensuring that terminations are carried out lawfully and fairly. Yet, many employees are unaware of their rights or the legal remedies available when they are wrongfully let go.
This article provides a comprehensive overview of what constitutes unfair dismissal in Malaysia, the legal channels available for recourse, and how committal proceedings can be used to enforce Industrial Court awards when employers fail to comply. Armed with this knowledge, employees can better navigate their options and pursue justice when facing unlawful termination.
Understanding Unfair Dismissal in Malaysia
What is Unfair Dismissal?
Unfair dismissal occurs when an employee is terminated without just cause or excuse. Under Malaysian employment law, particularly the Industrial Relations Act 1967, employees have a right to challenge such dismissals through the proper legal channels.
Examples of unfair dismissal include:
- Dismissal without a valid reason
- Retrenchment without compliance with the law
- Constructive dismissal (employee resigns due to employer’s conduct)
- Termination for exercising employee rights (e.g., forming a union)
The burden of proof lies with the employer to justify that the dismissal was carried out with just cause.
Legal Criteria for a Fair Dismissal
To be considered fair, a dismissal must meet the following:
- Substantive Justification: The employee must have committed misconduct, poor performance, or redundancy.
- Procedural Fairness: A proper domestic inquiry should be held, giving the employee a chance to defend themselves.
If any of these elements are absent, the employee may be eligible to file a representation for unfair dismissal.
Who is Protected?
Employees earning less than RM2,000/month or involved in manual labour are covered by the Employment Act 1955, but unfair dismissal protections also apply to other employees through case law and the Industrial Court framework.
Remedies for Unfair Dismissal and the Legal Process
Filing a Representation at the Industrial Relations Department (Jabatan Perhubungan Perusahaan)
If you believe you’ve been unfairly dismissed, you must:
- File a representation under Section 20 of the Industrial Relations Act within 60 days from the date of dismissal.
- Attend conciliation meetings with your employer arranged by the Industrial Relations Department.
If conciliation fails, the case may be referred to the Industrial Court.
Industrial Court Proceedings
The Industrial Court will determine:
- Whether the dismissal was with or without just cause
- The appropriate remedy (reinstatement or compensation)
Remedies include:
- Reinstatement to your previous job
- Back wages (up to 24 months for confirmed employees)
- Compensation in lieu of reinstatement (typically 1 month per year of service)
The court considers various factors, including length of service, conduct, and impact on the employer-employee relationship.
Employer’s Failure to Comply with the Award
Once the Industrial Court issues an award, it becomes legally binding. However, some employers refuse to comply—especially in paying compensation. That’s when committal proceedings become relevant.
Enforcing Industrial Court Awards: The Role of Committal Proceedings
What Are Committal Proceedings?
Committal proceedings are legal actions taken to punish a party who disobeys a court order. In the context of unfair dismissal, if an employer fails to comply with an award (e.g., to pay compensation), the employee may initiate committal proceedings in the High Court.
The goal is to compel the employer to comply by enforcing penalties, including potential imprisonment for contempt of court.
Legal Process for Committal Proceedings
- File an Affidavit: The employee (or their lawyer) must file an affidavit in support of the committal motion, detailing the non-compliance.
- Serve Notice: The employer is served with a notice to show cause why they should not be held in contempt.
- Court Hearing: The High Court will hear the matter, and if the employer is found in contempt, the court may issue fines or imprisonment orders.
Importance of Legal Representation
Due to the complexity and seriousness of committal proceedings, it is highly advisable to engage a law firm experienced in employment disputes. Legal counsel can:
- Draft accurate affidavits
- Present compelling evidence
- Argue the case effectively in court
Many Malaysia law firms offer employment law services, and some may provide flexible fee structures for employees pursuing unpaid awards.
Conclusion: Know Your Rights and Take Legal Action
Unfair dismissal is a serious violation of an employee’s rights. Fortunately, Malaysian law offers a structured process to seek justice through representation to the Industrial Relations Department and recourse to the Industrial Court. When employers fail to comply with awards, committal proceedings offer a powerful legal tool for enforcement.
Employees must act quickly—filing within the 60-day window—and seek professional legal guidance where necessary. With the support of an experienced Malaysia law firm, you can pursue your rights confidently and hold employers accountable.
Facing unfair dismissal? Know your rights, act promptly, and don’t hesitate to seek professional help.
Unfair Dismissal Malaysia: What Every Employee Should Know About Legal Enforcement Options