In many offer letters, the termination clause is written follows: “Your employment may be terminated by either by the Company or yourself by giving each one (1) month notice, without any reason for such termination.”
It’s okay to sign your offer letter when you see this clause, as it doesn’t actually hold much weight in court. No court in Malaysia will uphold this clause, despite it’s clear wording, due to the provisions of Section 20 of the Industrial Relations Act 1967.
Section 20(1) states, “Where a workman, irrespective of whether he is a member of a trade union of workmen or otherwise, considers that he has been dismissed without just cause or excuse by his employer, he may make representations in writing to the Director General to be reinstated in his former employment; the representations may be filed at the office of the Director General nearest to the place of employment from which the workman was dismissed.”
Also, remember that Section 20(1A) highlights that if you decide to file your case, it must be done no later than 60 days from the day the you are dismissed.
So, next time you come across a termination clause like this in an offer letter, it’s not as final as it sounds. Always know your rights and the legal framework that protects you. If you ever find yourself facing an unjust termination, remember Section 20 of the Industrial Relations Act 1967 is there for you. Just be mindful of the 60-day window to file your case 😉
#IndustrialRelations #HRMatters #AuntyHR
Stay Informed & Empowered with Me @Sim Ling KU
