Claiming Income Support After Retrenchment
A government scheme can help bridge the gap while you search for work.
How Do You Claim Income Support After A Retrenchment?
The Employment Insurance System, run by the Social Security Organisation (PERKESO), is built specifically for workers who lose their job involuntarily.
It provides a Job Search Allowance for three to six months, along with other assistance such as training and an early re-employment incentive.
You must apply within 60 days of termination to claim this support 1.
That 60 day window is separate from, and runs alongside, any deadline connected to an unfair dismissal claim.
Retrenchment, company closure, and an accepted voluntary separation scheme are generally treated as involuntary loss for this purpose.
Why This Scheme Is Worth Understanding Separately
This support exists to help bridge the gap between jobs, and it does not require you to prove your dismissal was unfair to receive it.
It is entirely different from a written representation for unfair dismissal, which runs on its own separate 60 day clock from the dismissal date 2.
You can pursue both at the same time without one affecting the other, so there is no need to choose between them.
Keep your termination documents ready, since you will likely need them for both processes.
What To Do Next
Apply for support through PERKESO as soon as you can after your job ends, since the clock starts immediately.
Read about what to check if your company closed without paying you, if that situation is closer to your own.
Separately, confirm your unfair dismissal filing deadline with a deadline calculator so neither clock catches you off guard.
If you believe the retrenchment itself was unfair, an employment lawyer can assess that question independently of your income support claim.
Keep both processes moving at the same time rather than waiting for one to finish before starting the other.
Set a simple reminder for both deadlines as soon as your job ends, since the two clocks run in parallel, not one after the other.
A short weekly check on where each process stands helps prevent either one from slipping while you focus on finding new work.
Neither process needs to feel overwhelming on its own.
Breaking each one into small, manageable steps makes the whole situation easier to handle.
Both processes exist to help you land on your feet again.
Two applications, two deadlines, one calmer path through a hard stretch.
While you sort out income support, it is also worth checking with an employment lawyer whether your retrenchment itself was handled fairly.
Common questions
Is EIS the same thing as an unfair dismissal claim?
No, and this is a common point of confusion. The Employment Insurance System is a government income support scheme, entirely separate from an unfair dismissal claim under the Industrial Relations Act. You can pursue both at the same time.
What kind of support does EIS actually provide?
Support includes a Job Search Allowance paid for three to six months, along with other assistance such as early re-employment incentives and training. The exact support depends on your individual contribution history and situation.
Does applying for EIS affect my unfair dismissal claim?
Applying for EIS support does not replace or interfere with a separate unfair dismissal claim. The two run on their own tracks with their own purposes and their own deadlines.
What if I am not sure whether my job loss counts as involuntary?
Retrenchment, company closure, and an accepted voluntary separation scheme are generally treated as involuntary for this purpose. If you are unsure how your own situation is classified, check directly with PERKESO or ask for clarification in writing.
Sources
- The Employment Insurance System, run by PERKESO, the Social Security Organisation, gives temporary financial help including a Job Search Allowance for three to six months to workers who lose their job involuntarily, provided they apply within 60 days of termination. malaysia.gov.my
- A worker who believes a dismissal had no just cause has 60 days from the dismissal date to lodge a written representation with the Director General of Industrial Relations. Mah Weng Kwai & Associates
Keep reading
While you sort out income support, it is also worth checking with an employment lawyer whether your retrenchment itself was handled fairly.