See how back wages are worked out
Work through the steps with your own salary and service to see where the legal ceiling sits.
How the statutory cap works
Back wages awarded by the Industrial Court are generally capped at twenty four months of pay for a confirmed employee and twelve months for a probationer.1 That is an upper limit, not a figure everyone receives.
Your salary does not stop you using the Section 20 route, since it covers all workmen.2
Work through the illustration
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Write down your last drawn monthly salary and whether you were confirmed or on probation when dismissed.
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Multiply your monthly salary by twenty four if confirmed, or by twelve if on probation. The result is the ceiling for your category.
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Remember this is a maximum. An actual award depends on the facts of your case.
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Note whether you would want reinstatement instead of money, since the court can order either.
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Keep the figure as a reference point for a settlement conversation, not an amount to expect.
What to do with your result
Treat your number as the outer edge of a range. The Industrial Court decides each case on its own facts.
Read about back wages and compensation and compensation in lieu of reinstatement to see how the two remedies differ.
How a lawyer helps from here
A lawyer looks at how you were dismissed alongside this illustration. They explain where your case might realistically sit and whether reinstatement is worth pursuing instead of, or alongside, back wages.
If you want that, send your salary, service length and dates. An independent lawyer may review the facts and replies about whether and how they can act.
Common questions
Does this tool tell me what I will actually receive?
No. It explains how the statutory cap works and shows you where your own salary and service length sit against it. Any actual award depends on the facts of your case as decided by the Industrial Court, and no outcome is promised.
Does my salary level affect whether I can even file?
The Section 20 route covers all workmen regardless of salary level, even though it once seemed limited to lower earners. Your salary affects the calculation, not whether you can bring a claim at all.
Sources
- Back wages at the Industrial Court are generally capped at twenty four months pay for a confirmed employee and twelve months for a probationer under the Second Schedule of the Industrial Relations Act 1967. Donovan & Ho
- The unfair dismissal route under Section 20 covers all workmen, including employees earning above RM4,000 a month, even though some Employment Act benefit provisions are limited by wage. MECA, Industrial Relations Act 1967 Guide
Keep reading
If you are considering a claim, an independent lawyer can apply the illustration to your actual facts and act for you if it is worth pursuing.
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.