The Law Behind Your Income Support
You lost your job and heard a scheme can help while you look for work.
Losing a job can start two separate deadlines at once. This Act is the source of one of them.
What does this Act set up?
The Employment Insurance System Act 2017 created a government scheme, run by PERKESO, that gives temporary financial help after involuntary job loss.1
It exists alongside, not instead of, any dismissal claim you are weighing up.
Who is the scheme for?
It targets employees who lose work involuntarily, through situations such as retrenchment, company closure or an accepted separation scheme.
A plain voluntary resignation would not usually qualify, because the scheme covers loss of work that was not your choice.
What does the support include?
Help can include a Job Search Allowance paid for three to six months, plus other support such as training, depending on your situation.1
This is income support. It is not compensation for an unfair dismissal.
Why does the deadline matter?
A claim under this Act must be lodged within 60 days of your termination, the same length as the unfair dismissal deadline.1
They are two separate clocks that start from the same day. It is easy to watch one and lose track of the other.
What should you do this week?
If your job ended involuntarily, start your claim through PERKESO as soon as you can, using your termination details and employment records.
Keep your termination letter and last payslips, since you will need proof of how your job ended. Write down the date you applied, so you can show you met the deadline.
If you are unsure whether your job loss counts as involuntary, apply anyway and let PERKESO decide.
Then check your unfair dismissal filing window on the deadline calculator, so neither deadline slips past you.
If you lost your job and think the dismissal itself was unfair, an independent employment lawyer can review how it ended. They can act on a claim alongside your income support 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 this the same law as the one I use for an unfair dismissal claim?
No. This Act runs a separate income-support scheme through PERKESO. An unfair dismissal claim is a different process under the Industrial Relations Act.
Does this Act cover me if I resigned by choice?
It is aimed at employees who lose work involuntarily, such as through retrenchment or closure. A straightforward voluntary resignation would not usually qualify.
What does this scheme actually pay out?
Support can include a Job Search Allowance paid for three to six months, alongside other assistance such as training, depending on your circumstances.
Can I use this scheme and still file an unfair dismissal claim?
Yes, these are separate processes with different purposes. One provides short-term income support, the other addresses whether the dismissal itself was fair.
Sources
- Under the Employment Insurance System Act 2017, PERKESO gives temporary financial help, including a Job Search Allowance for three to six months, to employees who lose their jobs involuntarily, and a claim must be lodged within 60 days of termination. malaysia.gov.my, Employment Insurance Scheme (EIS)
Keep reading
If you lost your job and think the dismissal itself was unfair, an independent employment lawyer can review how it ended. They can act on a claim alongside your income support 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.