[EMPLOYMENT] Special Alert: Nothing Owed, Nothing Due: Limited Damages For Dismissal Claims In Civil Courts

• Published date: 05 June 2023
• Subject Matter: Employment and HR, Contract of Employment, Discrimination, Disability & Sexual Harassment, Unfair/ Wrongful Dismissal
• Law Firm: Lee Hishammuddin Allen & Gledhill
• Author: Ashreyna Kaur Bhatia
• topic: Employment Law,Civil Procedure

In Malaysia, employers may dismiss employees on various grounds, such as misconduct, poor performance, or redundancy. Employees may also find themselves (i) constructively dismissed when a fundamental term of their contract is breached, or (ii) victims of forced resignation. Such employees typically seek recourse at the Industrial Court - a specialised tribunal established under the Industrial Relations Act 1967 to adjudicate unjust dismissal claims. The Industrial Court is empowered to award specific performance in the form of reinstatement, or monetary compensation in lieu thereof, and backwages of up to 24 months for confirmed employees. Alternatively, employees may turn to the civil courts (i.e., the Magistrates', Sessions, or High Court) for relief.

The existence of two forums in which unjust dismissal disputes may be resolved, naturally leads to the question of whether there are material differences, or financial advantages, in initiating a claim in...