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Mitigating Unfair Dismissal Claims at Industrial Court

Under Section 20 of the Industrial Relations Act 1967, any employee who considers themselves dismissed without just cause or excuse can file a representation for reinstatement. SMEs must follow strict procedural fairness.

1. Handling Probationers

• Probationers possess the same rights under the Employment Act as confirmed employees.
• If performance is substandard, issue clear written appraisals, measurable KPIs, and formal warning letters before non-confirmation.
• Always provide written notice of confirmation, extension, or non-confirmation prior to the expiry of the probation period.

2. Misconduct & Domestic Inquiry (DI)

• Issue a formal Show Cause Letter detailing the alleged misconduct.
• Allow the employee a minimum of 3 to 5 business days to reply in writing.
• If the explanation is unsatisfactory, convene an impartial Domestic Inquiry panel with independent note-takers.

3. Retrenchment Protocol

If financial redundancies require layoffs, follow the Code of Conduct for Industrial Harmony, apply the LIFO (Last-In-First-Out) principle, and submit the mandatory Borang PK to the Labour Department at least 30 days prior.