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Human Resources

Termination of Employment

Employment Act Malaysia - Termination of Employment

Termination must be for "just cause or excuse." While there isn't a fixed list of acceptable grounds for termination, common reasons include misconduct, poor performance, redundancy, or business closure. All employees are protected from unfair dismissal.

Termination Notice:

The termination notice should be the same for both the employer and the employee, as specified in the contract. If the contract is silent on this matter, the following statutory termination notice periods apply.

Length of service Termination notice period
< 2 years 4 weeks’ notice
2 ~ 5 years 6 weeks’ notice
> 5 years 8 weeks’ notice

Alternatively, either party can make a payment-in-lieu of notice. Notice of termination is not required in cases of serious misconduct or a "willful breach" of the employment contract.

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