The Law Behind Your Income Support
You lost your job and heard there is a scheme that can help while job hunting.
Losing a job often means two separate clocks start ticking at once, and this Act is the source of one of them.
What does this Act actually set up?
The Employment Insurance System Act 2017 created a government scheme, administered by PERKESO, that gives temporary financial help after involuntary job loss.1
It exists alongside, not instead of, any dismissal claim you may be weighing up at the same time.
Who is this scheme actually built for?
It targets employees who lose work involuntarily, through situations such as retrenchment, company closure, or an accepted separation scheme.
A straightforward, voluntary resignation would not usually qualify, since the scheme is built around loss of work that was not your choice.
What does the support actually include?
Assistance can include a Job Search Allowance paid for three to six months, along with other help such as training, depending on your situation.1
This is separate financial support, not compensation connected to whether your dismissal itself was handled fairly.
Why does the deadline here matter so much?
A claim under this Act must be lodged within 60 days of your termination, a window that happens to share the same length as the unfair dismissal deadline.1
These are two different clocks running from the same starting point, and losing track of one while focused on the other is a common, avoidable mistake.
What should you do this week?
If your job ended involuntarily, start your claim through PERKESO using your termination details and employment records as soon as you can.
Then check your separate unfair dismissal filing window on the deadline calculator, so neither deadline slips past you while you focus on the other.
Tell us how your job ended, and we can explain whether this income-support scheme is likely to apply alongside anything else you are pursuing.
Common questions
Is this the same law as the one I use for an unfair dismissal claim?
No. This Act runs a separate income-support scheme through PERKESO. An unfair dismissal claim is a different process under the Industrial Relations Act.
Does this Act cover me if I resigned by choice?
It is aimed at employees who lose work involuntarily, such as through retrenchment or closure. A straightforward voluntary resignation would not usually qualify.
What does this scheme actually pay out?
Support can include a Job Search Allowance paid for three to six months, alongside other assistance such as training, depending on your circumstances.
Can I use this scheme and still file an unfair dismissal claim?
Yes, these are separate processes with different purposes. One provides short-term income support, the other addresses whether the dismissal itself was fair.
Sources
- Under the Employment Insurance System Act 2017, PERKESO gives temporary financial help, including a Job Search Allowance for three to six months, to employees who lose their jobs involuntarily, and a claim must be lodged within 60 days of termination. malaysia.gov.my, Employment Insurance Scheme (EIS)
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Tell us how your job ended, and we can explain whether this income-support scheme is likely to apply alongside anything else you are pursuing.