Workplace matters, handled with care.

Section 20 of the Industrial Relations Act 1967 allows a dismissed employee to lodge a representation with the Director General of Industrial Relations within 60 days of dismissal. The department will attempt conciliation between the parties. If unresolved, the matter may be referred to the Industrial Court for adjudication. We guide employees through this process from the initial lodgement to hearing, and advise employers on responding to these representations.

Constructive dismissal occurs when an employer's conduct — such as a unilateral cut to salary, demotion, or a hostile working environment — is so serious that an employee reasonably feels they have no choice but to resign. Malaysian courts have held that such a resignation can be treated as a dismissal at the employer's initiative. The burden of establishing the facts rests with the employee, so early legal advice is useful in deciding whether a resignation is the right step.

Following the 2022 amendments, the Employment Act applies to all employees regardless of their monthly salary. Previously, key protections only applied to those earning below RM2,000 per month. This means more employees now have statutory entitlements to things like overtime, annual leave, and maternity benefits. However, the method of enforcement and certain procedural steps can still differ. We can clarify exactly which provisions apply to your specific situation.

Retrenchment in Malaysia requires advance notice to the Department of Labour (Notification of Retrenchment Form), payment of termination benefits under the Employment (Termination and Lay-Off Benefits) Regulations 1980, and proper selection criteria that do not discriminate. Failure to follow procedure can expose a company to Section 20 representations and Industrial Court liability. We advise employers on structuring the process to be lawful, fair, and clearly documented.

From the point of a Minister's reference to the Industrial Court, matters typically take between 12 and 24 months to reach a full hearing, depending on the court's calendar and the complexity of the case. Pre-hearing case management, discovery, and witness preparation all add to the timeline. We keep our clients updated throughout and pursue settlement where it genuinely serves their interests — often before a hearing is needed.