Unfair Dismissal Cases In Malaysia

The total number of claimants exceed the number of cases heard because in many instances a group of workers are involved.

Unfair dismissal cases in malaysia. 670 00 in the case of ramli akin v. Unfair dismissal of employee or termination of employment in malaysia. Imagine a situation where a highly paid and senior employee is dismissed after 10 years of service the maximum exposure for the employer would be up to 34 months of his last drawn salary and could therefore run into hundreds of thousands of ringgit. The potential exposure to an employer in an unfair dismissal case can be significant.

In holding their dismissal to be without just cause or excuse the industrial court awarded the claimants compensation in lieu of reinstatement at the rate of two. For instance eight out of every ten case received by the industrial court in malaysia borders on wrongful dismissals. Telekom malaysia berhad i m. In 2016 alone 1 226 out of the 1 340 cases brought to the court were related to unfair dismissals with about rm21 841 008 awarded against firms.

Nevertheless there are many misconceptions that have not been corrected. The number of claimants of unfair dismissal is shown in table 4. There is a limitation period to file a complaint of unfair dismissal. Here are a few salient points about unfair dismissal law in malaysia.

An employee has 60 days from the date of dismissal to file a complaint of unfair dismissal pursuant to section 20 of the industrial relations act 1967. The concept of unfair dismissal or unlawful termination is not new in malaysia. Service sdn bhd v industrial court of malaysia anor 3 the dismissal of the claimants was tainted with the motive of victimisation and unfair labour practice. The industrial court of malaysia has granted a sum of rm1 13 million to be paid to a former employee of petroliam nasional bhd petronas for wrongful dismissal.

The processing of these individual disputes may cause a strain on the resources and time of the ird and the minister of human resources and proponents of reform have argued that there is a case for abolishing the conciliation process and allowing employees to lodge unfair dismissal claims directly at the industrial court. Thus minimum protective legislation against unfair dismissal has been introduced into the labor laws to protect the interest of the employees against victimization and.