By:
Bryan Lui (Co-Managing Partner) [bryan_lui@luibhullar.com]
Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh_bhullar@luibhullar.com]
Understanding Employment Disputes in Malaysia
Workplace disagreements are increasingly common, sometimes leading to legal proceedings. Employment-related conflicts may arise due to wrongful dismissal, workplace harassment, contract breaches, and more. Depending on the case, disputes can be heard by either the Labour Court or the Industrial Court.
Labour Court vs. Industrial Court
Labour Court | Industrial Court |
Handles cases involving wages, leave, overtime pay, and other employment benefits. | Deals with unfair dismissal, trade union disputes, and other employment-related grievances. |
This article focuses on how employment disputes are resolved through the Industrial Court in Malaysia.
Jurisdiction of the Industrial Court
The Industrial Relations Act 1967 (IRA 1967) governs the relationship between employers, employees, and trade unions while providing mechanisms for resolving disputes. The Industrial Relations (Amendment) Act 2020, effective from 1 January 2021, introduced key amendments to the procedures.
Industrial Court Locations in Malaysia
Malaysia has five Industrial Courts located in Kuala Lumpur, Johor, Perak, Pahang, Sabah, and Sarawak. Contact details for each can be found on the official website.
Matters Heard in the Industrial Court
Unfair dismissal cases involving employees (workmen).
Trade disputes between employers and trade unions.
Applications for interpreting, amending, or varying awards or collective agreements.
Non-compliance complaints related to awards or agreements.
Cases of victimization due to trade union activities.
How to File a Claim with the Industrial Court
Employees seeking compensation or reinstatement due to unfair dismissal must file a complaint under Section 20(1) of the IRA 1967. Important requirements include:
The employee must qualify as a “workman” under the IRA 1967.
The dismissal must be without just cause or excuse.
The claim must be filed within 60 days of dismissal.
The complaint must be addressed to the Director General of Industrial Relations and submitted to the nearest Industrial Relations Department (IRD) office.
Comprehensive Guide to Filing a Claim
Step 1: Filing a Representation to the Director General of Industrial Relations
Submit Form P1 (Borang P1), along with supporting documents such as ID/passport copies and termination letters.
Forms can be submitted via email to the nearest Industrial Relations Department (IRD).
Step 2: Conciliation Meeting
The IRD will schedule a conciliation meeting between the employer and employee.
Legal representation is not allowed at this stage.
If the dispute is resolved, a Memorandum of Agreement is signed.
If no settlement is reached, the case is referred to the Industrial Court.
Step 3: Referral to the Industrial Court
The case is registered, and Form F (Notice of Mention of Case) is issued.
Both parties may appoint an employment lawyer in Malaysia or represent themselves.
Necessary documents include:
Statement of Case
Statement in Reply
Rejoinder
Bundle of Documents
Witness Statements
Step 4: Court Hearing
Proceedings resemble a trial, with both parties presenting evidence and witnesses.
Seeking an employment law firm in Kuala Lumpur ensures professional legal representation.
Step 5: Industrial Court Award
The court may order reinstatement or monetary compensation for unfair dismissal.
If the employer fails to comply, they may face penalties, including fines or imprisonment.
Step 6: Appeal to the High Court
Either party can appeal the Industrial Court’s decision to the High Court within 14 days.
New Development – The “Working for Workers” (WFW) App
The Malaysian Human Resource Ministry has introduced the Working for Workers (WFW) app, allowing employees to file workplace-related complaints anonymously. The app is available on the Apple App Store and Google Play Store.
Conclusion
Filing a claim against an employer has become more streamlined with recent amendments to labour law in Malaysia. Employees should seek employment law advice in Malaysia to understand their rights and legal options. If you are facing unfair treatment at work, consulting a wrongful termination lawyer in Malaysia, employment contract lawyer in Malaysia, or industrial relations lawyer in Kuala Lumpur, Malaysia can help you achieve justice.
Lui & Bhullar: Your Employment Lawyers in Malaysia
Lui & Bhullar is a premier employment law firm in Kuala Lumpur, specializing in:
Labour law in Malaysia compliance for employers.
Employment contract lawyer in Malaysia services for drafting and reviewing contracts.
Industrial relations lawyer in Malaysia assistance for workplace disputes.
Wrongful termination lawyer in Malaysia services for unfair dismissal claims.
Workplace discrimination lawyer in Malaysia cases, ensuring fair treatment in the workplace.
Employment lawyers near me search solutions for quick access to expert legal support.
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