Retrenchment mistakes to avoid
You have a notice in hand and do not want an early slip to cost you.
Some mistakes after a retrenchment notice are quiet, and you notice them only when they are hard to fix. These five come up most, and each is easy to avoid.
Is signing a VSS agreement too quickly a mistake?
Yes, because signing on the spot gives you no chance to read the terms. Asking to take it home for a day or two rarely costs you anything.
A signed document is harder to undo than a short pause to read it.
Is it a mistake not to ask how you were selected?
Yes. Many people accept a retrenchment without asking how they were chosen over colleagues in similar roles.
Ask whether Last In First Out was applied, and if not, why. The answer can show whether the process was fair.1
If your employer stays silent, note that and follow up.
Is missing the Employment Insurance System deadline a real risk?
Yes, this support has its own 60-day window, separate from any dismissal claim.2 It is easy to forget while you are making other hard decisions.
Once the window closes, you cannot get that support back.
Does a large employer’s reputation ensure a fair process?
No, a big or well-known company can still run an unfair selection. Ask the same questions whatever your employer’s name.
Is it a mistake to talk widely before speaking to a lawyer?
Often, yes. Going over every detail with colleagues who got the same notice can muddy your own position before you see it clearly.
Colleagues give useful context, but they cannot review your facts. A lawyer is the better first conversation.
What should you do this week?
Check your dates with the deadline calculator, and read how to prepare your case before your next step.
If you want a lawyer to act, an independent employment lawyer can review what you have done so far. They can help put right anything that needs it before you file a Section 20 representation.
If you have already taken steps after a retrenchment and want them checked, 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 tell you whether it is a case they can take on.
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 signing a VSS agreement quickly a common mistake?
It can be, since it removes your chance to review the terms and understand what you are giving up. Asking for time to read it properly rarely costs you anything real.
Is not checking the selection method a common mistake?
Yes, many people accept a retrenchment without asking how they were chosen compared with colleagues. Asking about Last In First Out can show whether the process was fair.
Is missing the Employment Insurance System deadline a real risk?
Yes, this is a separate 60-day window from your dismissal claim, and it is easy to overlook. Miss it and you lose that support.
Is assuming a large company always follows fair process a mistake?
Yes, company size does not ensure a fair selection process. Ask the same questions however established or well known your employer is.
Sources
- Last In First Out is the conventional, objective principle for choosing who is retrenched, and an employer who departs from it is expected to justify the decision with sound reasons. Richard Wee Chambers
- 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 have already taken steps after a retrenchment and want them checked, 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 tell you whether it is a case they can take on.
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.