What challenging a retrenchment costs
Your notice may not be a genuine redundancy, and you need to know what checking costs.
Before you spend more time on your retrenchment, you need a realistic idea of cost. Cost means more than a lawyer’s invoice, so it helps to look at each part on its own.
Does the early stage of a dispute involve legal fees?
Not in the usual courtroom sense. Solicitors cannot represent either party at the conciliation stage run by the Department of Industrial Relations, so that meeting carries no representation fees.1
A lawyer’s time is more likely to be billed for the preparation before it, such as gathering your notice and comparing your selection with colleagues.
Does comparing your situation with colleagues add to the cost?
It takes time, especially at a larger company with many affected roles. A clear comparison makes the rest of the work faster.
Your own notes on who was kept and who was let go shorten this part a lot. Disorganised records take a lawyer longer to read than a tidy summary.
Is income support available while a case is ongoing?
Yes, and it is separate from any legal cost. The Employment Insurance System offers a job search allowance to workers who lose their job involuntarily, and you must apply within 60 days of termination.2
Applying does not affect your right to challenge the retrenchment itself.
What should you ask before agreeing to any fee?
Ask what is included, what counts as extra work, and how costs are tracked as the case develops. Get the answer in writing so both sides know where they stand.
Does the outcome change how much you pay?
Some fee structures change with how far a case goes. A matter settled at conciliation may cost less than one that reaches a full hearing, so ask about this when you first discuss fees.
No outcome is promised at any stage. Plan for a range of costs rather than one fixed figure.
What should you do this week?
At an agreed consultation with an identified lawyer, bring your notice and your comparison notes for review, and ask what your case would involve. Use the deadline calculator to check your window before you file a Section 20 representation.
Read is challenging your retrenchment worth it before you decide. If you want a lawyer to act, an independent employment lawyer may review whether it is a case they can take on.
If you are weighing what a claim over your retrenchment would cost, request lawyer contact first; only after an identified independent lawyer has contacted you and specifically requested the material, send the notice and the reason given. An independent employment lawyer can review it and act for you if 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
Does conciliation itself cost legal fees in a retrenchment dispute?
Solicitors cannot represent either party there, so there are no courtroom style fees for that meeting. A lawyer's time is more likely to be billed for preparation beforehand, such as comparing your selection with colleagues.
Does comparing my selection against colleagues add to the cost?
It takes some time to gather, especially in a larger company. A tidy comparison list is quicker to review than scattered records, and a clear comparison strengthens the case.
Is Employment Insurance System support separate from legal costs?
Yes, it is a government scheme, separate from any lawyer's fees or dismissal claim. Applying for it does not affect your right to also pursue a claim.
How can I get a realistic cost estimate early?
At an agreed consultation with an identified lawyer, bring your notice and any selection details for review and ask what your case would involve. A lawyer can give a clearer estimate once they see the details.
Sources
- Solicitors are not permitted to represent either party at the conciliation stage run by the Department of Industrial Relations. Mah Weng Kwai & Associates
- The Employment Insurance System gives workers who lose their job involuntarily temporary financial help, including a job search allowance for three to six months, and applications must be made within 60 days of termination. Malaysia.gov.my
Keep reading
If you are weighing what a claim over your retrenchment would cost, request lawyer contact first; only after an identified independent lawyer has contacted you and specifically requested the material, send the notice and the reason given. An independent employment lawyer can review it and act for you if 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.