Unfair dismissal

Was your dismissal unfair?

You were let go, and something about it does not sit right.

Losing a job is a shock, and the days after are when a fair claim is most often lost. This page explains what unfair dismissal means in Malaysia, whether your situation might qualify, and the first thing to do while your options are still open.

What counts as unfair dismissal?

A dismissal is unfair when your employer ends your employment without “just cause or excuse”. In plain terms, the law asks whether there was a real, proven reason and whether a fair process was followed.

Your employer carries the burden of proving that reason at the Industrial Court, not the other way around. You do not have to prove your innocence; the company has to prove it was right to let you go.

This protection is wider than many people expect. It covers an employee dismissed for alleged misconduct, poor performance, redundancy, or no stated reason at all, and it applies whether you were confirmed or still on probation.

Do I have a case?

Start with the reason you were given, if any. A dismissal with no reason, no warning, or no chance to respond is often the easiest to question.

Then look at the process. Were you told what you supposedly did wrong? Were you given a chance to explain, or an inquiry where one was expected? Gaps in the process matter as much as the reason itself.

If you resigned because life at work was made unbearable, that may still be a dismissal in law. That situation has its own page: constructive dismissal.

The one deadline that matters first

There is a strict time limit. You may make a written representation to the Director General of Industrial Relations asking to be reinstated, within 60 days of your dismissal.1

Sixty days sounds like a lot until the shock, the job hunt and the paperwork eat into it. If you are close to the line, treat it as urgent. You can work out your exact deadline here.

What happens after you file

Your representation goes to the Industrial Relations Department (JPPM), which arranges conciliation, a meeting where an officer helps both sides look for a settlement. Lawyers do not speak for you at this stage, though many people prepare with one beforehand.

If the matter does not settle, it is referred directly to the Industrial Court for a decision.2 The filing itself has its own page: how to lodge a Section 20 representation.

What the outcome can be

The claim asks for your job back. In practice the Court often orders money instead of reinstatement, especially where trust has broken down.

The two main awards are reinstatement and back wages, or compensation in place of your job. Back wages are capped at 24 months of last-drawn salary for a confirmed employee, and 12 months for a probationer.3

No one can promise you a figure. What a lawyer can do early is tell you whether your facts point to a claim worth making, and what a realistic range looks like for someone in your position.

What to do this week

Save everything while you still can: your letter, contract, payslips, appraisals, and any messages about your exit. Do not delete or alter anything.

Write down what happened in order, with dates. A clear timeline is worth more than a long story, and it is the first thing a lawyer will ask for.

Then get a read on your options before the 60 days runs down. That is where a short conversation helps most.

If you are still inside the 60 days, that is the thing to protect first. A short message with your dismissal date is enough for us to tell you whether the clock is running and what to gather next.

Common questions

Can I claim unfair dismissal if I earn more than RM4,000 a month?

Yes. The Employment Act's wage limits govern statutory benefits like overtime, not unfair dismissal. The right to claim unfair dismissal under Section 20 covers workmen regardless of salary, so senior and well-paid staff can claim too.

Is unfair dismissal the same as wrongful dismissal?

No. Unfair dismissal is the statutory claim under the Industrial Relations Act, decided by the Industrial Court, which can order your job back. Wrongful dismissal is a contract claim in the civil courts, usually limited to your notice pay. Most employees pursue the unfair dismissal route.

What if I already signed something on my way out?

A signed acknowledgement of a letter is not the same as agreeing you were fairly dismissed. Even a release or settlement can sometimes be reopened if it was signed under pressure. Keep a copy of everything you signed and mention it early when you speak to a lawyer.

Sources

  1. An employee who considers they were dismissed without just cause or excuse may make a written representation to the Director General of Industrial Relations within 60 days of the dismissal, asking to be reinstated (Section 20, Industrial Relations Act 1967). Mah Weng Kwai & Associates, Unfair Dismissal (accessed 2026-09-22)
  2. Since the Industrial Relations (Amendment) Act 2020 came into force on 1 January 2021, the Director General refers a case that does not settle at conciliation directly to the Industrial Court. MECA, Industrial Relations Act 1967 Guide (accessed 2026-09-22)
  3. Back wages awarded by the Industrial Court are capped at 24 months of last-drawn salary for a confirmed employee, and 12 months for a probationer (Second Schedule, Industrial Relations Act 1967). Donovan & Ho, Back Wages at the Industrial Court (accessed 2026-09-22)

If you are still inside the 60 days, that is the thing to protect first. A short message with your dismissal date is enough for us to tell you whether the clock is running and what to gather next.