Employee Termination is the most high-risk HR management “activity” where if not done “correctly” can expose the company to claims for wrongful dismissal which can often lead to “expensive” pay-outs and legal fees. Although the labour law provides very clear guidelines in “black and white”, many employers are still facing wrongful dismissal claims in the Industrial Court every year.
Section 20 (1) of the IR Act Malaysia (IRA) 1967 provides that if an employee is terminated “without just cause or excuse”, then dismissal would be deemed as unfair. The purpose of the Act is to govern the employer and employee relationship and provide guidelines to resolve employment disputes, and remedies that are not prescribed in the Employment Act 1955.The IRA, however does not define what is deemed as “without just cause or excuse”. This is the grey area, because each employer’s perception of what is fair and what is unfair. may not be the same. The industrial court will consider each case on its own merits, based on facts and evidence including reviewing procedural fairness before making a decision. The Industrial Relations Act came into force in 1967.
How do we manage and navigate through this GREY AREA? Join Caritech’s free HR Coffee Talk and learn from leading HR and Industrial Law experts how your organization can effectively manage this “grey areas” and avoid claims for wrongful dismissal.