This essential handbook serves as a complete guide designed to aid Malaysian companies in the complex process of conducting retrenchment exercises. It provides the basic principles of employment law in Malaysia, focusing on the intricacies of retrenchment, including justifications, procedures and legal obligations.

This book is an invaluable resource for human resource professionals, in-house counsel and industrial relations managers who are tasked with preparing and implementing a retrenchment process within their organisations.

This guidebook should benefit employers to stay compliant with Malaysian employment law during retrenchment, making informed decisions with a clear understanding of justifications and procedures for retrenchment, as well as conducting the retrenchment process with confidence. The best practices included in the text will certainly prove beneficial in ensuring the smooth execution of retrenchment.

Key Features

• Provides fundamental overview of the laws and principles governing retrenchment.
• Explores various alternatives for consideration by employers before proceeding with retrenchment.
• Discusses the legal requirements and good industrial relations practices that must be adhered to during the retrenchment process.
• Emphasises the importance of maintaining human connections and handling the emotional and psychological aspects of retrenchment.
• Addresses constructive dismissal and performance issues, providing guidance on how to differently treat retrenchment, constructive dismissal, forced resignation, frustration of contract as well as termination due to poor performance.
• Elaborates on the impact of the latest amendments to the Employment Act 1955.
• Provides complete sample of Borang Pemberhentian Kerja, a crucial document for the execution of retrenchment procedures.

Table of Contents

Chapter 1 Introduction

Chapter 2 Justifications for Retrenchment

Chapter 3 Redundancy

Chapter 4 The Applicable Laws and Principles

Chapter 5 Alternatives to Retrenchment

Chapter 6 Legal Obligations and Good Industrial Relations Practices

Chapter 7 Human Connections

Chapter 8 Constructive Dismissal, Forced Resignation, Frustration of Contract and Poor Performance

Appendix 1 Amendments to the Employment Act 1955

Appendix 2 Borang Pemberhentian Kerja