What to Do If You're Unfairly Dismissed in Malaysia: Industrial Court Guide
By SuperJobs Team
Quick Answer: If you are dismissed without just cause in Malaysia, you have 60 days from your dismissal date to file a Section 20 representation with the Industrial Relations Department (under KESUMA). Your case first goes to compulsory mediation/conciliation; if unresolved, it is referred to the Industrial Court, which can order reinstatement or award compensation — typically back wages of up to 24 months plus compensation in lieu of reinstatement.
SuperJobs Insight: Industrial Court awards in Malaysia routinely include back wages capped at 24 months (12 months for probationers) plus one month's salary per year of service — for a RM3,500-a-month executive with 3 years' service, that can exceed RM90,000. The 60-day filing deadline, however, is absolute. Know your worth before your next role →
1. What Counts as Unfair Dismissal in Malaysia
Under Section 20 of the Industrial Relations Act 1967, every employee — regardless of salary — has the right not to be dismissed without just cause or excuse. Once dismissal is established, the burden shifts to the employer to justify it.
Dismissals that commonly fail the "just cause" test:
- Termination with no reason given, or a reason invented after the fact
- Poor performance dismissals without documented warnings or a genuine chance to improve
- Misconduct dismissals without a fair inquiry
- Sham retrenchment — "redundancy" where the role is quietly refilled
- Forced resignation — "resign or be fired" ultimatums
- Dismissal of a pregnant employee (heavily protected since the 2022 Employment Act amendments)
Probationers are protected too — probation is not a licence to dismiss at will.
2. Constructive Dismissal Explained
You do not have to be formally fired to claim. Constructive dismissal arises when your employer commits a fundamental breach of your contract — and you resign because of it. The law treats your resignation as a dismissal.
Recognised grounds include:
- Unilateral salary or benefit cuts without your consent
- Demotion or stripping of core duties without cause
- Forced transfer beyond what your contract permits
- Sustained victimisation or harassment that management fails to address
The golden rules: protest in writing when the breach happens, give the employer a chance to fix it, then resign promptly and clearly ("I consider myself constructively dismissed"), and file within 60 days. Working on quietly for months after the breach can be read as acceptance of the new terms.
3. Step 1: Gather Evidence Before You Act
Before you sign anything or clear your desk, secure your paper trail (using only documents you are lawfully entitled to):
- Employment contract, offer letter and handbook
- Termination letter — if dismissed verbally, email HR immediately asking for written confirmation of the dismissal and date
- Payslips and EPF statements (to establish salary for compensation)
- Performance records — appraisals and commendations that contradict a "poor performance" narrative
- Correspondence around the dismissal, warnings (or their absence), and any inquiry notes
- A written timeline of events while your memory is fresh
Be careful with mutual separation agreements: signing one "in full and final settlement" can extinguish your claim. Don't sign under pressure — take it away and get advice first.
4. Step 2: File a Complaint at JTKSM
Know which door to knock on — Malaysia has two parallel tracks under KESUMA (the Ministry of Human Resources):
- Unfair dismissal (reinstatement) claims are filed as Section 20 representations at the Industrial Relations Department (Jabatan Perhubungan Perusahaan) — online or at the nearest IR office.
- Pure monetary claims — unpaid salary, notice pay, overtime — go to JTKSM (the Labour Department) and its Labour Court under the Employment Act.
Many dismissed employees file both where applicable. For the unfair dismissal claim: the deadline is 60 days from the date of dismissal, filing is free, no lawyer is required, and you should state that you seek reinstatement (the statutory remedy, even if you ultimately want compensation). Miss the 60 days and the claim is gone — this deadline is applied strictly.
5. Step 3: Mediation at the Industrial Relations Department
After filing, the IR Department calls both parties to a conciliation (mediation) meeting, usually within weeks. An IR officer facilitates — the tone is administrative, not courtroom-like. Both sides present their positions, and the officer explores settlement, commonly a negotiated payout in exchange for withdrawing the claim.
A large share of Malaysian dismissal disputes settle at this stage, saving 1–2 years of litigation. Come prepared with a realistic settlement number anchored to the back-wages-plus-compensation formula in Section 7 below. If no settlement is reached, the matter proceeds — since the 2021 amendments, unresolved representations go to the Industrial Court without ministerial filtering.
6. Step 4: Referral to the Industrial Court
At the Industrial Court, the case becomes formal litigation:
- Pleadings — you (the claimant) file a Statement of Case; the company files a Statement in Reply
- Case management — directions on documents, witness statements and hearing dates
- Hearing — witnesses testify and are cross-examined; because the employer bears the burden of proving just cause, the company usually presents first
- The award — a written, publicly available decision
Realistic timeline: 12 to 24 months from referral to award, depending on the court's load and case complexity. The Industrial Court applies equity and good conscience, meaning procedural technicalities matter less than the substantive fairness of the dismissal — a genuinely unfair dismissal will not be saved by neat paperwork, and vice versa.
7. Possible Remedies: Reinstatement or Compensation
The Industrial Court can order:
- Reinstatement to your former position with back wages — the statutory remedy, though rarely granted in practice because the employment relationship has usually broken down
- Back wages: up to a maximum of 24 months of last-drawn salary (capped at 12 months for probationers), typically discounted for post-dismissal earnings and contributory conduct
- Compensation in lieu of reinstatement: commonly one month's salary per year of completed service
Illustration: an executive earning RM4,000/month, dismissed after 4 years, could see an award in the region of RM96,000 back wages (24 months, before deductions) plus RM16,000 in lieu of reinstatement — around RM112,000 before adjustments. Actual awards vary widely with the facts; settlements are usually lower but faster.
8. Hiring a Lawyer vs Representing Yourself
You can represent yourself throughout — many claimants do at the conciliation stage. Consider the trade-offs:
| Factor | Self-Representation | Industrial Relations Lawyer |
|---|---|---|
| Cost | Free (filing is free) | Varies widely — commonly several thousand ringgit to five figures for a full hearing; some act on partial or negotiated fee terms |
| Conciliation stage | Very manageable alone | Useful for settlement valuation |
| Industrial Court hearing | Possible but demanding — pleadings, cross-examination, submissions | Significant advantage; employers almost always come represented |
| Union members | — | Union may represent you at no cost |
A sensible middle path: handle the filing and conciliation yourself, and pay for a one-off consultation to value your claim before the mediation meeting. If the case is referred to the Industrial Court and the sums are significant, representation usually pays for itself. Meanwhile, keep your job search moving — mitigating your losses also protects your award. Browse new opportunities on SuperJobs →
9. Frequently Asked Questions
How long do I have to file an unfair dismissal claim in Malaysia?
60 days from the date of dismissal, under Section 20 of the Industrial Relations Act 1967. The representation is filed with the Industrial Relations Department, filing is free, and the deadline is enforced strictly — missing it almost always ends the claim.
What is constructive dismissal in Malaysia?
It is when your employer fundamentally breaches your contract — such as an unagreed pay cut, demotion or forced transfer — leaving you no reasonable option but to resign. The law treats that resignation as a dismissal, and you can file a Section 20 representation within 60 days of leaving.
How much compensation can I get for unfair dismissal in Malaysia?
The Industrial Court can award back wages of up to 24 months of last-drawn salary (12 months for probationers), plus compensation in lieu of reinstatement of roughly one month's salary per year of service. Awards are adjusted for post-dismissal earnings and the conduct of both parties.
Apakah maksud pembuangan kerja secara tidak adil dan ke mana perlu saya mengadu?
Pembuangan kerja tanpa sebab atau alasan yang adil boleh dicabar di bawah Seksyen 20 Akta Perhubungan Perusahaan 1967. Anda perlu memfailkan representasi di Jabatan Perhubungan Perusahaan dalam tempoh 60 hari dari tarikh pembuangan kerja; tuntutan gaji tertunggak pula difailkan di JTKSM (Mahkamah Buruh).
Can probationers claim unfair dismissal in Malaysia?
Yes. Probationers enjoy the same right not to be dismissed without just cause, and employers must still show fair reason and process. The main difference is that back wages for probationers are capped at 12 months instead of 24.
Take the Next Step
- Browse jobs on SuperJobs → — Keep your income moving while your case proceeds
- Check salary benchmarks → — Establish your market value for settlement talks
- Rebuild your CV with AI feedback → — Get interview-ready fast
- Plan your comeback → — Turn a bad exit into a better next chapter
?Frequently Asked Questions
How long do I have to file an unfair dismissal claim in Malaysia?
60 days from the date of dismissal, under Section 20 of the Industrial Relations Act 1967. The representation is filed with the Industrial Relations Department, filing is free, and the deadline is enforced strictly — missing it almost always ends the claim.
What is constructive dismissal in Malaysia?
It is when your employer fundamentally breaches your contract — such as an unagreed pay cut, demotion or forced transfer — leaving you no reasonable option but to resign. The law treats that resignation as a dismissal, and you can file a Section 20 representation within 60 days of leaving.
How much compensation can I get for unfair dismissal in Malaysia?
The Industrial Court can award back wages of up to 24 months of last-drawn salary (12 months for probationers), plus compensation in lieu of reinstatement of roughly one month's salary per year of service. Awards are adjusted for post-dismissal earnings and the conduct of both parties.
Apakah maksud pembuangan kerja secara tidak adil dan ke mana perlu saya mengadu?
Pembuangan kerja tanpa sebab atau alasan yang adil boleh dicabar di bawah Seksyen 20 Akta Perhubungan Perusahaan 1967. Anda perlu memfailkan representasi di Jabatan Perhubungan Perusahaan dalam tempoh 60 hari dari tarikh pembuangan kerja; tuntutan gaji tertunggak pula difailkan di JTKSM (Mahkamah Buruh).
Can probationers claim unfair dismissal in Malaysia?
Yes. Probationers enjoy the same right not to be dismissed without just cause, and employers must still show fair reason and process. The main difference is that back wages for probationers are capped at 12 months instead of 24.