Why were you picked for layoff?
Some colleagues were kept while you were let go, and you want to know why.
LIFO stands for last in, first out. Most Malaysian employers are expected to start from it when deciding who to let go in a retrenchment.
What it means
Among employees doing similar work, the most recently hired are usually the first selected for retrenchment. The idea is that this order is objective and easy to defend.
It is a convention, not a rigid rule written into the statute. It still carries real weight when fairness is judged.
Why it matters to you
An employer may depart from LIFO, but only with sound, specific reasons. One example is particular skills the business genuinely still needs.1
If the departure looks arbitrary, or lines up with personal disputes and not business needs, raise it if you challenge the retrenchment.
Can your employer skip this order
Ask in writing why the selection was made the way it was. A vague or missing answer tells you something about how the decision was reached.
Compare your length of service and role with colleagues who were kept on. Read about retrenchment for the wider process this selection sits inside.
If the answer does not add up, check your 60-day window to challenge it on the deadline calculator.
If you were retrenched and think the last in, first out principle was ignored, 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
Does my employer have to follow LIFO exactly?
It is the usual starting point, not an absolute rule. An employer can depart from it, but is expected to have a sound, specific reason for choosing who stays and who goes.
What if I was newer but kept, and someone senior was let go?
That alone does not prove unfairness, since skills, roles and performance can justify a different order. Ask what reason was actually given for departing from LIFO.
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 were retrenched and think the last in, first out principle was ignored, 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.