Human Resource

Termination of Employment in Malaysia

Human Resource

Termination of Employment in Malaysia

What defines the termination of employment in Malaysia? The Department of Labour defines the termination of employment as a cessation of service due to either a company closure or workers’ redundancy. There are several reasons that falls into the definition, including mergers, acquisitions, and corporate restructuring. This does not include a termination and dismissal of workers due to disciplinary action. Thus, the process of firing isn’t as straightforward as it may seem.

It is important to note the two kinds of employee dismissals. The first dismissal is the direct dismissal. This is when an employer decides to end an employment through a formal letter of termination. The court will only interfere with this decision if it is proven unfair. The second dismissal is the constructive dismissal. This is when an employer shows intention to end the employment relationship, allowing the employee to regard the contract as having been terminated.

There are two common reasons for employee dismissal—they are the misconducts of an employee, and poor work performance. When an employer wishes to dismiss an employee, they must be able to prove with substantive fairness and procedural fairness. There should be a justified reason as to why the decision was made, and there should be practical implementation through domestic inquiry. An employer will be required to find facts and information about the situation. It is an information gathering procedure that allows employers to have a fair reason for dismissal. Failure to produce a fair reason will have implications on the employer.

At Klozer, we assist in human resource matters. Should you need our assistance in the termination process, we have a team of experienced professionals that will be able to give you the advice you need for the entire procedure. So if you are interested in partnering with us in any employee termination, get in touch with us now and we will schedule an appointment with you soon.

Are you interested in partnering with the experienced professionals at Klozer for human resource management in Malaysia?

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