Wrongful Dismissal in Malaysia: What Employees Should Do Within 60 Days

After being dismissed, many employees immediately ask:

“How much can I claim?”

If you believe the dismissal may have been unfair, a more urgent question is:

What did you sign, what reason did the employer give, and has the 60-day clock already started?

First, collect the documents

Keep copies of:

• employment contract or offer letter
• probation clauses
• HR policies
• warning letters
• performance reviews or PIPs
• termination letter
• relevant emails and messages
• payslips
• resignation letter, if any
• mutual separation or settlement documents

Feeling that a dismissal was unfair is not the same as establishing that it was without just cause or excuse.

The facts and records matter.

Probation does not automatically mean “no protection”

It is common to hear:

“You are still on probation, so the company can let you go anytime.”

That is too broad.

Probation status may affect how a case is assessed and what remedies are available, but it does not automatically make every dismissal fair.

If performance is cited, relevant questions may include whether concerns were communicated, whether there was an opportunity to improve, and whether the employer's documented reason is consistent with what actually happened.

Giving contractual notice also does not automatically answer whether the dismissal was substantively fair.

Section 20 is not simply a compensation form

Section 20 of Malaysia's Industrial Relations Act 1967 allows a worker who considers that they were dismissed without just cause or excuse to make a representation for reinstatement.

That is different from assuming there is an automatic fixed compensation amount.

The process can involve conciliation and, where appropriate, further proceedings before the Industrial Court.

Outcomes depend on the facts of the case.

The 60-day deadline matters

JPPM states that a Section 20 representation must be filed within 60 days of the dismissal.

That is why spending weeks only asking friends or online communities whether a dismissal “looks unfair” can be risky.

The legal deadline does not pause while you decide what to do.

Be careful if you are asked to resign

Sometimes the employer does not directly issue a dismissal.

Instead, an employee may be told to resign, sign a settlement, or accept a separation arrangement.

That does not automatically make the situation wrongful dismissal, but it can make the facts more complicated.

If you are being asked to sign a document you do not understand, do not assume it is merely administrative.

A practical order to follow

1. Save all documents and relevant messages.
2. Confirm the effective dismissal date.
3. Read the termination and probation clauses.
4. Compare the employer's reason with the documented history.
5. Do not miss the 60-day Section 20 deadline.
6. If needed, check your case with JPPM or a qualified legal professional.

The useful first question is: what did you sign?

Employees often jump to one of two conclusions:

“I received notice, so the dismissal must be legal.”

or:

“It feels unfair, so it must be wrongful dismissal.”

Neither conclusion is safe without the facts.

For probationers in particular, the issue is often not simply the word “probation”.

It is why the employment was ended and what evidence supports that decision.

Then remember the practical point:

60 days can pass quickly.

Official reference:

• Jabatan Perhubungan Perusahaan Malaysia
• Industrial Relations Act 1967 — Section 20