Retrenched While The Company Hires
Your role was made redundant even as new job ads appeared for similar work.
You were told your position no longer existed because of restructuring. Weeks later, a job advertisement appeared for a role that sounds a lot like yours.
Genuine redundancy means the position itself disappears, not that a worker is swapped out. New hiring for similar work soon after raises a fair question connected to unfair dismissal law.
Does hiring afterward mean my retrenchment was not genuine?
It can be strong evidence against genuineness, especially if the new role has similar duties, reports to the same manager, or was advertised within a short time of your exit.
A completely different role, or hiring for a genuinely separate department, is less telling. Compare the actual job description of the new posting against your own.
Was I selected fairly compared with others in my position?
Malaysian practice favours Last In First Out as the conventional, objective way to choose who is retrenched, and an employer who departs from it needs sound reasons1.
If colleagues doing the same work with less seniority than you kept their jobs, ask why. A departure from that principle without explanation is worth raising with a lawyer.
Who has to justify the retrenchment?
Your employer carries the burden of showing the retrenchment was for a genuine reason and handled fairly, not simply that a letter said so2.
Save the retrenchment letter, the stated reason, and any internal announcement about restructuring or cost cutting that was given to staff generally.
How long do you have to challenge this?
You have sixty days from the date of retrenchment to file a Section 20 representation with the Director General of Industrial Relations3.
Retrenched workers may also be able to apply to PERKESO for Employment Insurance System support, which is separate from any unfair dismissal claim and does not affect it.
What should you do this week?
Screenshot the job advertisement and note the date it appeared relative to your last day of work.
Compare your own severance calculation against what your contract and length of service would suggest, and read about a sudden role made redundant for a related pattern, or use the deadline calculator to track your sixty days.
Sharing the job advertisement alongside your retrenchment letter helps a lawyer judge quickly whether the redundancy was genuine.
Common questions
Is it illegal for a company to hire again after retrenching me?
Not automatically illegal, but hiring for a similar role soon afterward can undermine the claim that your position was genuinely redundant. The closer the new role is to yours, the more it matters.
What if the new job posting uses a slightly different title?
Titles alone do not decide this, so compare the actual duties, reporting line, and required skills listed in the posting against your old role. A different label covering the same substance still raises questions.
Does Last In First Out always have to be followed exactly?
No, an employer can depart from it, but they need sound, explainable reasons such as specific skills the business still requires. A departure with no clear justification is easier to challenge.
Can I claim both a retrenchment claim and Employment Insurance System support?
Yes, the Employment Insurance System is a separate government support scheme from an unfair dismissal claim, and pursuing one does not block the other. Apply for both within their own deadlines to keep your options open.
Sources
- Last In First Out is the conventional, objective retrenchment selection principle, and an employer who departs from it must justify the departure with sound reasons. Richard Wee Chambers
- In an unfair dismissal case the burden of proof rests on the employer to show just cause or excuse for what happened. Mah Weng Kwai & Associates
- An employee who believes they were dismissed without just cause may file a Section 20 representation within sixty days of the dismissal. Mah Weng Kwai & Associates
Keep reading
Sharing the job advertisement alongside your retrenchment letter helps a lawyer judge quickly whether the redundancy was genuine.