Member Article

Top 10 Questions Employers Should Ask When Hiring and Firing in Malaysia

HIRING IN MALAYSIA:

1. Does the employee have a right to work in Malaysia or does he/she need a work permit?
2. Is the employment offer subject to any condition precedent (e.g., satisfactory reference and medical checks)?
3. Is the recruitment process free of discrimination?
4. Is the contract in writing?
5. What should be included in the employment contract?
6. Are the employees subject to any minimum terms and conditions of employment and/or minimum wage?
7. Does the employer have any statutory obligations to make contributions or deductions for staff provident funds, social security funds, and income tax?
8. Can the employer include non-compete clauses in the contract?
9. Are the employment particulars subject to personal data protection?
10. Are the employees subject to representations by trade unions?

FIRING IN MALAYSIA:

1. Is there employment at-will in Malaysia or must the termination be for cause?
2. What are the justifiable grounds for termination (e.g., misconduct, unsatisfactory performance, and redundancy)?
3. Is it necessary to hold a domestic inquiry before dismissal?
4. Is the employee required to comply with any restrictive covenants post termination?
5. Must misconduct be sufficiently serious before an employee is dismissed summarily?
6. What are the requirements for dismissing an employee for poor performance?
7. In what circumstances can an employee be retrenched?
8. Is the employer obliged to pay an employee any retrenchment benefits?
9. What is the employee’s legal recourse for challenging his/her termination?
10. What is the employer’s potential liability in unfair dismissal?