What to do after a retrenchment notice
You just got a retrenchment notice and want to know what to check before you accept.
A few checks made now can protect your position while you decide how to answer your retrenchment notice.
What should you check about the reason given?
Check whether the reason describes a genuine redundancy in your own role, not a vague mention of restructuring. If the company is still hiring for similar roles, note that down.
A retrenchment must be for a real surplus of staff. It cannot be a convenient label for something else.
What should you ask about how you were selected?
Ask how the selection was made, and whether Last In First Out was applied to your type of role. If your employer departed from that principle, it is expected to have sound reasons.1
Compare your position with colleagues in similar roles who were kept on. Do it in writing if you can.
Should you apply for income support right away?
Yes. The Employment Insurance System offers a job search allowance to workers who lose their job involuntarily, but you must apply within 60 days of termination.2
Do this alongside anything else you plan. It runs separately from any dismissal claim, so one does not affect the other.
Should you sign anything before reviewing it properly?
Not straight away. Ask for time to read any settlement or VSS agreement, even if your employer wants an answer fast, because a signed document is hard to undo.
Have a lawyer read any release clause, since it usually asks you to give up future claims connected to your job.
Who should you talk to first?
Talk to a lawyer before your colleagues. Colleagues can give useful context, but they cannot review your own facts.
What should you do this week?
Gather your notice, your contract and anything that compares you with colleagues in similar roles. Read how to prepare your case, then check your dates with the deadline calculator before you reply to anything.
If you believe the retrenchment was not fair, you have 60 days to file a Section 20 representation. If you want a lawyer to act for you, send your dates to an independent employment lawyer and they may review whether it is a case they can take on.
If you are thinking of challenging 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 tell you whether it is worth pursuing, and act for you if it is.
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
What is the first thing to check on a retrenchment notice?
The stated reason for the retrenchment and whether it describes a genuine redundancy in your specific role. A vague reason, or one that does not match what is actually happening at the company, is worth questioning.
Should I ask how I was selected compared with colleagues?
Yes, ask specifically how the selection was made and whether Last In First Out was applied. If it was not, ask what reason your employer gives for departing from it.
Should I apply for the Employment Insurance System right away?
Yes, applications need to be made within 60 days of termination, so treat this as a priority alongside anything else you are considering. It runs separately from any dismissal claim.
Should I sign a settlement or VSS agreement immediately?
Not before reviewing it properly. Ask for time to read the terms, even under pressure to respond quickly, since a signed agreement can be hard to unwind later.
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 are thinking of challenging 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 tell you whether it is worth pursuing, and act for you if it is.
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.