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Employment Termination in Malaysia

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Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses and employees reserve the right to dispute their dismissal as unfair.

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Notice period

There is no stipulated notice period required under Malaysian employment law.

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Severance pay

Employees who’re dismissed unfairly (i.e., for reasons not related to their performance or conduct) are entitled to severance packages equivalent to their tenure working with an employer.

  • Up to two years of employment: 10 days pay for each year of service
  • 2 - 5 years: 15 days pay for each year of service
  • 5+ years: 20 days pay for each year of service