How long a retrenchment challenge takes
You are planning your money and job search and need to know how long this could run.
How long a retrenchment challenge takes depends mostly on how much of it you dispute and how well your evidence is organised.
Is genuine redundancy disputed in your case?
A retrenchment challenge often turns on whether the role was really redundant. It can also turn on whether retrenchment was used to remove one particular employee.4
If your case is the second kind, expect real preparation time. You need what the employer said about the business reason, and whether it held up.
A retrenchment backed by clear business records is hard to dispute quickly. One with a thin reason, or a role refilled soon after, needs more digging before you file.
How does disputing LIFO selection affect timing?
Last In First Out is the usual selection principle. An employer may depart from it, but needs sound reasons.4
If you were chosen out of turn, building a comparison takes time at the start. You need who else was in your role and how long each person had served.
A tidy comparison moves faster through conciliation and any hearing than scattered, half-remembered details.
What happens once you file?
After you file, the department arranges one or two conciliation sessions.1 If the case does not settle, it goes straight to the Industrial Court.
The 2020 amendment removed the ministerial screening step that used to add delay.2 After that, the length depends on the court’s schedule and how far your LIFO or redundancy argument is contested.
Should you apply for EIS while you wait?
Yes. The Employment Insurance System is a separate government scheme, and you must apply within 60 days of termination, a deadline that runs alongside your claim.3
Do not wait on your dismissal claim before applying.
What should you do next?
Read the full process and check your claim deadline with the deadline calculator. Then speak to a lawyer before you file a Section 20 representation.
If you want a lawyer to act, an independent employment lawyer can review your dates and tell you whether it is a case they can take on.
If you want to act within the 60-day window after a retrenchment, 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 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
Is EIS the same process as challenging my retrenchment?
No, EIS is a separate government income support scheme through PERKESO, not part of your unfair dismissal claim. You can apply for EIS and pursue a claim at the same time.
Does disputing the LIFO order add time to my case?
It can, since you need to gather who else was in your role, their length of service, and how the employer explained its selection. A tidy comparison speeds up the hearing once you have it.
How long does conciliation take?
The department arranges one or two sessions, and the gap between them depends on both sides' schedules. Some cases settle here, which shortens the overall timeline.
What if I think the retrenchment was not genuine?
If you believe the role was not really redundant, or that retrenchment was used to remove you for another reason, expect more preparation time. You will need evidence of the business reason given and whether it holds up.
Sources
- After a representation is filed, the Department of Industrial Relations usually arranges one to two conciliation sessions between the employer and the employee. Mah Weng Kwai & Associates
- Since the Industrial Relations (Amendment) Act 2020 came into force, a case that fails at conciliation is referred directly to the Industrial Court by the Director General, without ministerial screening. MECA
- 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
- Last In First Out is the conventional selection principle for retrenchment, and an employer may depart from it but must have sound reasons for doing so; retrenchment must also be for a genuine redundancy rather than a disguised dismissal. Richard Wee Chambers
Keep reading
If you want to act within the 60-day window after a retrenchment, 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 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.