What are back wages?
The pay you lost while out of work, and how much of it you can recover.
Back wages are usually the first figure a worker asks about once a claim moves forward. They stand for the income you lost while the case ran.
What it means
Back wages are the salary the Industrial Court can order your employer to pay for the time between your dismissal and the end of your case. The court orders them only if it finds your dismissal was unfair.
The amount is not automatic or unlimited. It runs from your dismissal date to the last day of hearing, and income you earned elsewhere in that time is normally taken into account.
Why it matters to you
There is a hard ceiling on this figure. It is capped at 24 months for a confirmed employee and 12 months for a probationer, under the Second Schedule of the Industrial Relations Act.1
So a case that drags on for years does not pay more once the ceiling is reached. As an illustration only, a confirmed employee whose last-drawn salary was RM4,000 could be awarded at most 24 months of back wages, which is RM96,000.1
How is the amount worked out
The court looks at your last-drawn salary, how long your case ran, and whether you found new work in that time. It then applies the cap.
Back wages usually come with either reinstatement or, where returning to the job is not realistic, compensation in lieu of reinstatement. Both form one award.
If you are still deciding whether to file, check your exact deadline on the deadline calculator.
If back wages are central to the claim you are thinking of bringing, an independent lawyer can review your dates and documents. They can take it forward if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Do I get back wages automatically if I win?
Back wages usually follow a finding that your dismissal was unfair, but the amount is calculated by the court, not fixed in advance. Earnings you made elsewhere during that period can reduce the final figure.
Why is there a cap at all?
The cap stops a case that takes a long time to be heard from turning into an unlimited claim. It applies however many months or years your case actually took.
Sources
- Back wages awarded by the Industrial Court are assessed from the date of dismissal to the last day of hearing, capped at 24 months for a confirmed employee and 12 months for a probationer under the Second Schedule of the Industrial Relations Act 1967. DNH, Monetary Remedies at the Industrial Court
Keep reading
If back wages are central to the claim you are thinking of bringing, an independent lawyer can review your dates and documents. They can take it forward if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.