“Constructive dismissal” means a situation where the employee has no choice left but to tender his resignation due to the actions, decisions or policies imposed by the employer on the employee resulting in a breach of contract by the employer. There is no direct dismissal by the employee in a constructive dismissal.

Under Section 20 of the Industrial Relations Act 1967, an ex-employee may make a representation to the Director General for Industrial Relations if he considers that his employment was dismissed without just cause or excuse by his employer (this includes constructive dismissal). This representation must be filed within 60 days from the date of dismissal. In the event reconciliation between parties is unsuccessful, the Minister of Human Resources may, if he thinks fit, refer the representation to the Industrial Court for determination. The ex-employee may seek for reinstatement of his employment or compensation and backwages of up to 24 months (or 12 months for probationers).

In the Industrial Court, the employee will have to prove, amongst others, that there was a fundamental breach by the employer which caused the employee to resign. Grounds for constructive dismissal include significant reduction of salary and benefits, demotion, change of job scope and duties, and transfers to different/unrelated departments in bad faith.

The Industrial Court hearing is typically conducted in the manner of a trial whereby the parties call witnesses and produce documentary evidence to support their case.

Our Services

Our services and support include, but is not limited to the following areas:

  • Advising employers/employees on their rights, remedies and the strengths of their case.
  • Drafting and assisting employees in lodging representations of constructive dismissal to the Director General.
  • Drafting and negotiating amicable settlements for employers/employees prior to or even in the course of Industrial Court proceedings.
  • Representing employers/employees in Industrial Court proceedings.

Our Experience

Advised and represented a property investment group in a dispute its purchase of shares worth RM25 million in a company owing valuable land in Cameron Highlands. The claim in the High Court involved the rectification of the share register to have the new share certificates issued in favour of the purchaser and to replace the directors of the target company.

Successfully defended two related companies with an annual turnover of RM7,000,000 and its directors in a minority oppression claim at the High Court and the Court of Appeal.

Successfully opposed two ex-parte applications to injunct an extraordinary general meeting to remove a director of two related companies and a claim for wrongful removal of the director at the High Court and the Court of Appeal.

Acted for a group for shareholders/investors and successfully obtained an order for pre-action discovery to formulate a claim for fraudulent misrepresentation against two companies and the directors of the companies.

Acted and represented a company director in a matter involving financial assistance pursuant to section 67(1) of the Companies Act 1965 and negotiated a favourable settlement on behalf of the company director.

Related Services

Reviews & Testimonials

  • “Great support from John Chan. He has taken the time to understand my employment situation and advised accordingly.” – How Han, Kuala Lumpur
  • “I would like to thank John and his team for their legal advice and work. He was attentive and clear in responding to all of my queries and I would highly recommend John and MWKA.” – Jaysee, Melaka
  • “When our organization encountered a complex employment case, we sought the expertise of MWKA, and I’m thankful we did. John Chan’s legal knowledge is truly reassuring. He responds whenever he’s available, even outside of working hours, should you have a question. If he’s tied up in court and can’t reply promptly, he’ll let you know in advance to ease your concerns. This gesture alone shows his genuine commitment to his clients. John consistently goes above and beyond in his service. He’s been gracious enough to answer questions that even fall outside the immediate scope of our case, which we deeply appreciate. If you’re in a tight spot and need someone who has got your back, I’d wholeheartedly recommend MWKA.” – LY Tai, Passion Republic Sdn Bhd
  • “I am pleased to provide a testimonial for Mr John Chan and his team who recently represented me in my constructive dismissal case against my former employer. John and his team have demonstrated exceptional skill, dedication and professionalism throughout the entire process. From our very first discussion over video conferencing, I was impressed with his in-depth knowledge of the burden of proof required to establish a case of constructive dismissal in court. His patience and thorough answers to many of my questions gave me the confidence and assurance I needed to proceed with the case. Also, my thanks to Ms Jazlynn Wong for patiently responding to me promptly on some silly and repetitive queries. She was always available to answer my questions, provided guidance, and offered support. Her patience, professionalism and kindness were invaluable. Overall, I appreciate the effort, commitment and dedication of the team in representing my interests and ensuring that I received the justice I deserved. Lastly, I would highly recommend John and his team to anyone who needs legal representation for employment related issues. Thank you once again for his excellent work.” – Tan Kiak Soon, Puchong
  • “I was represented better than I could have ever imagined in my employment/industrial relations matter. My needs were put first and I was treated as a friend rather than a number. My opinions were valued and my doubts were always reassured. My nerves were calmed and the process was always explained. Mr John Chan and Ms Rachel Ng advised me accordingly from time-to-time. They went above and beyond and did everything they could to ensure a great outcome. I couldn’t have asked for a better law firm and solicitors. Thanks MWKA.” – Mr RR, Kuala Lumpur
  • “I would like to put on record, the appreciation of myself, and New Zealand Unlimited Restaurants Sdn Bhd (NZUR) for the excellent legal advice and representation provided by John Chan from MahWengKwai & Associates. NZUR decided to engage the legal services of MahWengKwai & Associates, and we commenced liaising with John Chan. John Chan was very thorough in his working relationships with NZUR. The Management of NZUR would certainly be willing to engage John Chan’s services again. NZUR is pleased to recommend John Chan from MahWengKwai & Associates for employment and industrial relations matters and disputes.” – Richard Tankersley, New Zealand Unlimited Restaurants Sdn Bhd, Kuala Lumpur
  • “Mr. John Chan was the one who assisted me with my enquiries. I can say that he is very approachable and knowledgeable regarding my employment matter. I am very grateful to have found their website online and for their quick response when I emailed them. Highly recommended.” – Mae, Philippines
  • “I am very pleased with MahWengKwai & Associates’ services in particular, John Chan. My dealings with him have been professional, efficient and timely. John is very responsive in addressing any concerns that we have and helping us through the process. Thank you for your excellent service! We are happy with the outcome. Highly recommending MWKA to my HR network.” – Nicole Liew, Hitachi Construction Machinery (Malaysia) Sdn Bhd, Petaling Jaya, Malaysia

READ MORE →
Naveen Joshua
Senior Associate
Carolyn Ng
Associate
Kirthika Padmanapan
Associate
Jasmine Wee
Associate
Tharani Kunasekaran
Associate

Related Articles and Updates

A software development contract is a legally binding agreement that governs the terms for developing…

Friday, 25 June, 2021 3:00 pm – 3:45 pm Legal Aspects of Digital Transformation About…

Friday, 16 April, 2021 3:00 pm – 3:45 pm Data Privacy in Malaysia – Does…

MahWengKwai & Associates’ Online Talks are presented by video conference to inculcate knowledge and awareness…

By Tommy Wong The Anti-Money Laundering, Anti-Terrorism and Proceeds of Unlawful Activities Act 2001 (“the…

Wednesday, 18 December, 2019 12:30pm – 2:30pm    Doing Business In Malaysia (Download pdf brochure )…

    How can we help you?

    Schedule a meeting with us