Your rights after a retrenchment
You were retrenched and want to know which protections still apply to you.
Here are the rights that apply after a retrenchment, in plain terms and one at a time.
What is the right to a genuine reason?
Your employer needs a genuine redundancy behind a retrenchment, not a convenient label for something else. Ask for the business reason in writing.
This applies whatever your role, your salary or your length of service.
What is the right to a fair selection method?
Last In First Out is the conventional, objective principle for choosing who is retrenched, and a departure from it is expected to come with sound reasons.1 You can ask how you were selected compared with colleagues in similar roles.
A vague or missing answer is worth noting and following up.
What is the right to bring a claim within a set window?
You have 60 days from your last working day to file a Section 20 representation with the Director General of Industrial Relations.2 The window is fixed and does not stretch for personal circumstances.
What is the right to income support?
The Employment Insurance System offers a job search allowance to workers who lose their job involuntarily, with its own 60-day application window.3 You have this right whether or not you also bring a dismissal claim.
What is the right to make your employer answer?
Once your case is in the process, your employer has to answer the comparison and reasoning you put forward, not simply say the retrenchment was fair.
The process tests both sides, so incomplete records on your side do not end the matter.
What do these rights not promise?
None of them promises a particular result. Every case is decided on its own facts before any remedy is ordered.
What should you do this week?
Write down your last working day and check it against the deadline calculator. Read how to prepare your case and what to do after your notice for practical steps.
If you want a lawyer to act on these rights, an independent employment lawyer can review your facts and tell you whether it is a case they can take on.
If you think your rights were breached in 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 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
Do I have a right to know why I was selected for retrenchment?
You can expect a genuine, explained reason behind a retrenchment, including how the selection was made. Asking your employer for that explanation is a reasonable first step.
Do I have a right to a fair selection method?
Last In First Out is the conventional selection principle, and any departure from it is expected to come with a sound reason. You can ask about this directly.
Am I entitled to income support regardless of a claim?
Yes, the Employment Insurance System runs separately from any dismissal claim, and you can pursue both at the same time.
Does filing a claim cost me my severance payout?
That depends on what you have already signed, so review any agreement carefully before you respond. A lawyer can explain how a claim and a payout interact in your case.
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
- An employee who believes they were dismissed without just cause or excuse may file a Section 20 representation with the Director General of Industrial Relations within 60 days of the dismissal. 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 think your rights were breached in 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 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.