Employment In Malaysia Case Study

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2.1.5 DISMISSAL & REINSTATEMENT Dismissal issues in Malaysia are governed by the Employment Act 1955 and the Industrial Relation Act 1967. It is an important aspect for discussing relation between employer and employee. Dismissal defined as termination by an employer due to some misconduct by the employee (Ayadurai, 2004). It considered as the last punishment for employee for their misconduct and incompetency due to performance. The procedure only will take place when the ground of dismissal determined (Guru, 2003). One of the common ways of a lawful dismissal is the employer that provides proper notice. It is mandatory procedure for an employer to provide notice and it’s stated in Employment Act 1955. Section 12(1) under Employment Act 1955…show more content…
Even though in a contract of service of employee does not mentioned regarding notice of termination, but it is responsibility of an employer to inform employee. Besides that, an important element should be conducted before a dismissal is justified are due inquiry (Guru, 2003). Due inquiry is stated under Section 14(1)(a) of the Employment Act 1955. (Ayadurai, 2004) defined due inquiry as proper enquiry where domestic inquiry will held in conformity with the principles of natural justice. In the case of Ibrahim Hassan and Diamond Cutting Sdn Bhd (1980), the court had concluded that domestic inquiry become requirement and recognized in Malaysia’s Industrial Law. Thus, it is a mandatory requirement to the inflicting of punishment of…show more content…
Summary dismissal can be address as instant dismissal. It mean dismissal of an employee on the spot without notice (Guru, 2003). This kind of dismissal occurs due to serious misconduct of breach of an important term of the contract of service. Although there is no any notice given but the dismissal still with just cause. Thus, before the summary dismissal justified a domestic inquiry will be conducted. If the employer failure to conduct domestic inquiry, employee recovered the defect by convening a board before the learned judges in the court. Employee that dismissed on the spot still receive wages, holiday pay and other benefits because it is already stated in the contract of service. Section 13 of Employment Act 1955 stated that a contract of service may be terminated by either party with sum equivalent to the amount of pay (Guru, 2003). Constructive dismissal is one of the important issue relating to dismissal. It can be defined as termination of a contract of employment by an employee because employer has shown that he does not intend to be bound by some essential term of the contract. (Elizabeth, 2003) clarified that even though employee has resigned, but the employee have right to apply to an employment tribunal as he has been dismissed unfairly. Four conditions should be met by employee in order to claim constructive dismissal (Ayadurai, 2004). The condition is as below: i) There

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