Home / Law & Rights

Solved

What are your rights if your employer suddenly retrenches you in Malaysia

My company is doing a restructuring and rumours are some of us will be let go. I've been here 6 years. I don't really know my rights around retrenchment benefits and notice. Can anyone who's been through it explain what I'm actually entitled to?
Anonymous asker ·Asked on 20 days ago ·366 views ·5 answers
This page contains personal experience shared by users about Law, not professional advice. For important decisions, please consult a qualified professional or official channel.

5 contributors answered

Best Answer
Grab Driver Kumar Beginner First-hand experience Full-time Grab 6 years, I know petrol cost, incentive game and best makan spots lah.
I was retrenched after 7 years in 2023 so I learned this the hard way. If you're covered under the Employment Act, you're entitled to retrenchment benefits based on your service: 10 days wages per year for under 2 years, 15 days per year for 2 to 5 years, and 20 days per year for 5 years and above, so at 6 years you'd get roughly 20 days pay per year of service. You're also entitled to your contractual notice period or payment in lieu, plus any unused annual leave encashed. Two important things: the company should follow LIFO (last in first out) principle within the same category unless they justify otherwise, and they must submit a PK form to the Labour Department. If they short-change you or the reason feels like disguised unfair dismissal, you can file a complaint at the Industrial Relations Department (JTK) within 60 days, so keep every email and document.
Property Newbie Jason Beginner First-hand experience Just bought my first rumah, still shell-shock from S&P and legal fee, I share the mistakes.
Check if your salary is above RM4,000, because the Employment Act coverage was extended so almost everyone is covered now, but the exact benefit calculation still depends on your contract too. If your contract offers better than the minimum, you take the better one. Read your contract termination clause carefully.
Makcik Kek Aidah Beginner First-hand experience Home baker turned kek order boss, I share cost per slice, delivery and repeat customer tips.
Also don't forget you can withdraw from EPF and there's the SOCSO Employment Insurance System (EIS) that pays you a monthly job-seeking allowance for a few months while you look for work. Go to the SOCSO office or apply online within 60 days of losing your job, many people don't claim this and lose free money.
FinBro Danial Beginner First-hand experience Ex-bank analyst, I talk unit trust, ASNB and stocks without the get-rich-quick nonsense.
Keep everything in writing. When they call you into the room, don't sign anything on the spot, take it home and read. I signed a mutual separation letter under pressure and later realised I gave up my right to claim. Ask for time to review.
Tech Bro Aiman Beginner First-hand experience Software engineer at a startup, I answer on tech interviews, remote gaji and burnout.
If it's genuine restructuring they must still pay your benefits, retrenchment is not the same as firing for misconduct. But if you suspect they're just using restructuring as an excuse to remove specific people unfairly, that's constructive or unfair dismissal territory, go to JTK. Six years service is significant, don't let them lowball you.

Answer this

or Log in Answer with your account and build reputation.

Related questions

3
Education 5 answers Solved

What's the real experience of paying off your PTPTN loan, salary deduction vs lump sum?

Graduated two years ago with about RM45k PTPTN debt hanging over me. I've been ignoring it…

728 views
2
Health 5 answers Solved

Constant gastric pain and bloating, should I go government clinic or private GP in Malaysia and what to expect cost wise?

For the past two weeks I've had recurring gastric pain, bloating, and this burning feeling…

432 views
5
Job Interview 4 answers Bounty 5 points

How to answer expected salary in interview without lowball myself?

Interviewer always ask expected salary. If I say too high they reject, too low I rugi. Cur…

5,225 views
2
Salary & Bonus 4 answers Bounty 5 points

Fresh grad gaji expectation, is my degree even worth it?

Just graduated degree, applying jobs and the offers only RM2800-3200. My friend with only …

2,446 views
5
Job Interview 4 answers Solved

How to answer "what is your expected salary" without lowballing myself?

Got 3 interviews lined up this week for marketing exec roles in KL. Everytime they ask exp…

820 views
5
Salary & Bonus 4 answers Solved

Kena retrench, company bagi notis 1 minggu je. Betul ke ni?

Baru kerja 3 tahun, semalam HR panggil cakap department restructure, last day hujung mingg…

772 views