How Workforce Policy Affects Retrenchment
Your employer pointed to a workforce policy to explain why you were picked.
Some workers are told an internal workforce policy explains their retrenchment, but nobody says how it applied to them.
What it means
Some Malaysian employers have internal policies on the make-up of their workforce and weigh them when planning a retrenchment.
Whatever policy an employer follows, the law still expects the choice of who is retrenched to be genuine, objective and explained.
Why it matters to you
The usual objective starting point is to release the most recently hired staff first, and any departure from that needs sound reasons.1
A vague mention of a policy, with no clear reason why you in particular were selected, is worth questioning.
Does this affect a retrenchment selection
It can, if the policy is used in place of a real reason for picking you. Ask your employer in writing why you were chosen, and compare the answer with colleagues in similar roles who were kept on.
Read about retrenchment and last in, first out (LIFO) to see how a fair selection is meant to work.
If the explanation does not hold up, check your 60-day window to challenge it on the deadline calculator.
If you think the way retrenchment selection was made was unfair and you are considering a claim, an independent employment lawyer can look at your facts. They can advise whether it is worth pursuing.
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
Can an internal workforce policy be used to justify who is retrenched?
Any internal policy used to depart from the usual objective selection approach still needs sound, specific reasons tied to the genuine needs of the business.
What should I do if I suspect the selection was not fair?
Set out clearly what you were told, who else was affected, and any pattern you noticed, then have a lawyer review whether the selection process looks genuinely objective.
Sources
- Last In First Out is the conventional, objective principle for selecting employees for retrenchment, and an employer may depart from it only if it can justify doing so with sound reasons, for a genuine redundancy. Richard Wee Chambers, 5 Points on the Law of Retrenchment in Malaysia
Keep reading
If you think the way retrenchment selection was made was unfair and you are considering a claim, an independent employment lawyer can look at your facts. They can advise whether it is worth pursuing.
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.