Wrongful Dismissal and Termination Claims in Malaysia
A dismissal may be challenged where it was carried out without just cause or excuse, without following a proper domestic inquiry where required, or in circumstances amounting to constructive dismissal. NNTA and Co advises and represents both employees pursuing dismissal claims and employers defending against them at the Industrial Court.
Scope of Assistance
- Unfair dismissal claims and constructive dismissal matters
- Wrongful termination disputes
- Dismissal without just cause or excuse
- Termination without proper notice or compensation
- Redundancy and retrenchment matters
- Industrial Court representation at all stages
- Settlement negotiations and conciliation
- Compensation claims for lost wages and benefits
The Dismissal Process
Under the Industrial Relations Act 1967, an employee who believes they have been dismissed without just cause or excuse may file a representation to the Director General of Industrial Relations within 60 days of the dismissal. If conciliation fails, the matter may be referred to the Industrial Court for adjudication. The Industrial Court has the power to award reinstatement or backwages and compensation in lieu of reinstatement.
Constructive Dismissal
Constructive dismissal arises where an employer's conduct amounts to a breach of the employment contract of such severity that the employee is entitled to treat the contract as terminated. Common examples include unilateral reduction in salary, demotion, or conduct that fundamentally undermines the employment relationship.
Domestic Inquiry
Where an employee is dismissed for misconduct, the employer is generally required to conduct a domestic inquiry before dismissal. Failure to do so, or conducting the inquiry in a procedurally unfair manner, may affect the employer's defence at the Industrial Court. We advise employers on the proper conduct of domestic inquiries and represent both parties in contested inquiry and post-inquiry proceedings.
The 60-day time limit for filing a representation at the Industrial Court is strictly enforced. Employees who believe they have been unfairly dismissed should seek legal advice promptly to avoid losing the right to make a claim.
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