Malaysia Employment Law : Firing
UNDER WHAT CIRCUMSTANCES CAN A CONTRACT OF SERVICE BE TERMINATED BY EITHER THE EMPLOYER OR EMPLOYEE ?
Where a contract of service is considered broken, an employer can dismiss an employee. A contract of service is considered to have been broken when an employee has been absent from work for more than 2 consecutive working days without prior leave from the employer or without informing or attempting to inform the employer at the earliest opportunity during such absence with reasonable excuse.
An employer may terminate the contract of service where the employee is found guilty of misconduct, misdemeanor or negligence.
An employee has the right to terminate the contract of service, where an employer fails to pay wages within seven days after the wages period.
A contract of service can also be terminated without notice :
- by paying to the other party or indemnity in lieu of notice
- if there is a willful breach by the other party of a term or condition of the contract of service
Where the contract of service has expired or work being completed, the contract may also be terminated. Written notice being given by either party may also terminates a contract of service.
WHAT IS THE NOTICE PERIOD REQUIRED TO TERMINATE A CONTRACT OF SERVICE ?
An employee may resign by giving notice of resignation or termination to the employer to terminate the contract of service. An employer may also dismiss an employee by giving notice of termination to such employee. In both situation, the length of notice shall be the same pursuant to the contract of service.
Where the period of notice of termination is not specified in the contract of service, the notice period shall be as follows :
- less than 2 years of service - minimum 4 weeks
- 2 years or more but less than 5 years of service - minimum 6 weeks
- 5 years of service or more - minimum 8 weeks
OTHER THAN TERMINATION, WHAT ACTIONS CAN AN EMPLOYER TAKES AGAINST AN EMPLOYEE ON THE GROUNDS OF MISCONDUCT ON THE PART OF THE EMPLOYEE ?
Where an employee is found guilty of misconduct by an employer, the employer may take the following actions :
- downgrade the employee
- impose any other lesser punishment as the employer considers just and fit
