Claiming income support after retrenchment
You lost your job and need money coming in while you look for work.
How do you claim income support after a retrenchment?
The Employment Insurance System, run by the Social Security Organisation (PERKESO), is for workers who lose their job involuntarily. It gives a Job Search Allowance for three to six months, along with other help such as training and an early re-employment incentive.
You must apply within 60 days of termination.1 Retrenchment, company closure and an accepted voluntary separation scheme are treated as involuntary loss for this purpose.
Is this the same as an unfair dismissal claim?
No. You can receive this support without proving your dismissal was unfair. A written representation for unfair dismissal runs on its own 60-day clock from the dismissal date.2
You can pursue both at once, so there is no need to choose. Keep your termination papers ready, because you will likely need them for both.
How do you keep both deadlines?
Apply through PERKESO soon after your job ends, since the clock starts at once. Set a reminder for both deadlines, because they run in parallel, not one after the other.
Check your unfair dismissal deadline with the deadline calculator. A short weekly check on each process stops either from slipping while you look for work.
What should you do next?
Read about what to check if your company closed without paying you if that is closer to your situation. If you believe the retrenchment itself was unfair, an employment lawyer can assess that question separately from your income support and act on a claim if there is one.
If your retrenchment also raises a wider claim, an independent employment lawyer can review your termination papers and act for you on it while you sort out your income support.
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
Is EIS the same thing as an unfair dismissal claim?
No. The Employment Insurance System is a government income support scheme, separate from an unfair dismissal claim under the Industrial Relations Act. You can pursue both at the same time.
What kind of support does EIS actually provide?
Support includes a Job Search Allowance paid for three to six months, plus help such as an early re-employment incentive and training. The exact support depends on your contribution history and situation.
Does applying for EIS affect my unfair dismissal claim?
No. Applying for EIS neither replaces nor affects an unfair dismissal claim. Each has its own purpose and deadline.
What if I am not sure whether my job loss counts as involuntary?
Retrenchment, company closure and an accepted voluntary separation scheme are treated as involuntary for this purpose. If you are unsure how yours is classified, ask PERKESO in writing.
Sources
- The Employment Insurance System, run by PERKESO, the Social Security Organisation, gives temporary financial help including a Job Search Allowance for three to six months to workers who lose their job involuntarily, provided they apply within 60 days of termination. malaysia.gov.my
- A worker who believes a dismissal had no just cause has 60 days from the dismissal date to lodge a written representation with the Director General of Industrial Relations. Mah Weng Kwai & Associates
Keep reading
If your retrenchment also raises a wider claim, an independent employment lawyer can review your termination papers and act for you on it while you sort out your income support.
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.