5 Legal Facts Every Employee Must Know About Unfair Dismissal

Being dismissed from your job can be emotionally distressing and financially devastating — especially when you believe it was done unfairly. In Malaysia, employees are protected by laws prohibiting employers from terminating them without cause or excuse. However, many employees are unaware of their legal rights, the process to challenge unfair dismissal, and the remedies available.

Understanding these five essential legal facts will help you take informed action if you ever face unfair termination, whether you’re a permanent employee, contract staff, or on probation.

1. You Have the Right to Challenge Unfair Dismissal

Under Malaysian law, unfair dismissal is when an employee is terminated without valid justification or procedurally unjustly. Some common forms include:

• Termination without an apparent reason
• Dismissal without a fair hearing or proper investigation
• Forced resignation (constructive dismissal)
• Retrenchment without following legal procedures

Even if you are a probationer or working under a fixed-term contract, you still have the right to file a claim if the dismissal is deemed unfair, whether your termination was done with just cause and followed fair procedures matters.

At CY Wong Ng & Partners, we have assisted numerous clients in evaluating the legality of their dismissal and taking appropriate legal action.

2. The Industrial Relations Act 1967 Protects You

The primary law governing unfair dismissal in Malaysia is the Industrial Relations Act 1967 (IRA). Section 20 of the IRA gives employees the right to file a representation if they believe they were terminated without cause or excuse.

Here’s what Section 20 allows:

• Employees can seek reinstatement to their previous position.
• If reinstatement isn’t suitable, monetary compensation may be awarded instead.
• The claim must be filed within 60 days of the date of dismissal.

Additionally, if you earn less than RM2,000 per month or fall within specific categories (e.g. manual labourers, supervisors), the Employment Act 1955 may apply to your case. These overlapping protections ensure low-income and non-EA-covered employees can seek redress through the Industrial Court.

3. You Must Act Within 60 Days of Dismissal

This is one of the most important legal facts: you only have 60 days from the date of dismissal to take legal action. If you fail to file your representation within this period, your claim will likely be rejected on procedural grounds — even if you were unfairly dismissed.

Here’s what to do:

• Keep documentation: Retain your termination letter, WhatsApp messages, emails, and salary slips.
• Avoid delay: Seek legal advice immediately if you’re uncertain about your rights.
• File representation: Submit your complaint to the Industrial Relations Department (Jabatan Perhubungan Perusahaan) as soon as possible.

Timing is critical in employment disputes. Delay can cost you the chance to obtain justice and compensation.

4. You May Be Entitled to Reinstatement or Compensation

Once your claim proceeds to the Industrial Court, the court will assess whether your dismissal was legally justified. If not, you may be awarded one of the following remedies:

a. Reinstatement

• The court may order the employer to reinstate you to your previous job with full back wages.

b. Compensation instead of Reinstatement

• If reinstatement is not practical (e.g. due to a breakdown of trust), the court may award compensation:
  • Up to 24 months’ back wages for permanent employees.
  • Up to 12 months’ back wages for probationers.
  • 1 month’s salary per year of service as compensation instead of reinstatement.

c. Terminal Benefits

• Additional payments, such as gratuities, unclaimed leave, or bonuses, may be awarded depending on the employment contract or company policy.

The outcome depends on the facts of each case. The stronger your evidence and legal representation, the better your chances of receiving fair compensation.

5. Legal Representation Strengthens Your Case

Navigating an unfair dismissal claim requires knowledge of the law and the ability to prepare persuasive arguments, gather evidence, and present your case effectively. This is where professional legal support becomes essential.

At CY Wong Ng & Partners, our employment law team can assist you with the following:

• Assessing your dismissal and identifying potential legal breaches.
• Prepare and file your representation with the Industrial Relations Department.
• Negotiating settlements during the conciliation process.
• I will represent you in the Industrial Court if the matter proceeds to the hearing.

We also provide strategic advice to employees unsure whether their situation amounts to unfair dismissal. Early legal intervention can significantly improve your outcome.

Conclusion – Stand Up for Your Rights at Work

Losing your job unfairly can turn your life upside down, but it doesn’t have to be the end of the road. With the right legal advice and timely action, you can challenge your dismissal and seek redress through Malaysia’s legal system.

Let’s recap the five legal facts every employee must know:

1. You have the right to challenge unfair dismissal.
2. The Industrial Relations Act 1967 protects your right to file a claim.
3. Act within 60 days — or risk losing your chance to claim.
4. You may receive reinstatement or compensation through the Industrial Court.
5. Legal support strengthens your case and improves your chances of success.

Whether you’re unsure about your dismissal or already planning to take legal action, understanding your rights is the first and most important step. Employment law in Malaysia is designed to protect both employees and employers, but justice often favours those who act quickly and wisely.

Need Legal Help?

If you believe you’ve been unfairly dismissed, forced to resign, or treated unjustly at work, don’t wait. The clock starts ticking the moment you’re let go. Contact CY Wong Ng & Partners today for a confidential legal consultation. Our experienced team is here to guide you through every step — from filing your claim to securing your compensation — with professionalism, integrity, and results-driven focus.

FAQ

1. What is considered unfair dismissal under Malaysian law?

Unfair dismissal occurs when an employee is terminated without cause or excuse, or due process is not followed. Examples include dismissal without reason, forced resignation (constructive dismissal), or termination without proper inquiry.

2. Which law protects employees from unfair dismissal in Malaysia?

The Industrial Relations Act 1967, specifically Section 20, protects employees by allowing them to file a representation to challenge their dismissal. In some instances, the Employment Act 1955 may also apply.

3. How long must I file a complaint after being dismissed?

You must file a representation with the Industrial Relations Department within 60 days of dismissal. Missing this deadline may result in your claim being rejected.

4. Can probationers or contract staff file unfair dismissal claims?

Yes. Probationers and employees on fixed-term contracts are still entitled to protection if their dismissal is unjustified or procedurally unfair.

5. What remedies are available if I win my unfair dismissal case?

Remedies may include:

• Reinstatement to your former job
• Back wages (up to 24 months for confirmed staff, 12 months for probationers)
• Compensation in lieu of reinstatement

6. What is the process for making an unfair dismissal claim?

The steps include:

1. Filing a complaint with the Industrial Relations Department
2. Attempting conciliation between parties
3. Referral to the Industrial Court (if unresolved)
4. Hearing and final decision by the court

7. What is constructive dismissal?

Constructive dismissal occurs when an employee is forced to resign due to the employer’s actions, such as significant pay cuts, demotion, or hostile work conditions. Under the law, the resignation must be treated as involuntary.

8. Will my employer be penalised if found guilty of unfair dismissal?

While there are no criminal penalties, the employer may be ordered to reinstate you or pay compensation. Once the Industrial Court makes the decision, it is binding.

9. Do I need a lawyer to file an unfair dismissal claim?

While not mandatory, having a lawyer significantly improves your chances of success. A lawyer can help assess your case, gather evidence, represent you during conciliation, and argue effectively in court.

10. How can CY Wong Ng & Partners help with my unfair dismissal case?

We provide:

• Legal consultation and case assessment
• Filing and documentation support
• Representation during conciliation and court hearings
• Strategic advice for settlement or reinstatement