Severance Payments

Employees with wages of up to RM4,000/month, employed for 12 months or more, are entitled to the following minimum statutory severance payments according to the Employment (Termination and Lay-Off Benefits) Regulations 1980:

For employees with wages exceeding RM4,000/month, entitlement to severance payments depends on the employment contract. If the contract is silent, there is no statutory right to termination benefits. However, in some circumstances, there is a general expectation that a financially able employer should pay reasonable severance compensation.

BACK TO ARTICLE LIST