Job Seeker Handbook

Malaysian Labour Law : Regulation of Employment

2. FIRING

2.4 The Circumstances an Employee as Not Entitled to Termination or Lay-Off Benefits

  • There are certain circumstances under which an employee is not entitled to termination or layoff benefits :
    • Employed for less than 12 months on date of termination
    • The employee voluntarily terminates the contract of service
    • Where the employee commits misconduct inconsistent with the fulfillment of the expression or implied condition of service after due inquiry.
    • Where the employee attains the age of retirement as stipulated in the contract of service
    • The contract of service is renewed
    • The employee re-engaged on terms and conditions not less favorable than his previous contract
    • 7 days before the date of termination, the employer has offered to renew the contract on no less favorable terms
    • The employee leaves the services without paying the employer the indemnity due contract of service after receiving due notice of termination of the contract or without employer's prior consent
  • An employer shall pay termination or layoff benefits to an employee not later than 7 days after the termination.

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