I’m delighted to share that the DLA Piper Guide to Going Global series has recently been updated.
This series includes the Employment practice area, and I provided the Malaysia content for this section.
The Employment guide has information on 56 jurisdictions. DLA Piper is one of the largest law firms in the world, but does not have a Malaysia office, and I am the sole Malaysian contributor in the series.
According to the Malaysian Employers’ Federation (MEF), more than 20,000 employees were retrenched in 2015 (as at September 2015). Comparatively, the figure for the entire 2014 was 10,000 employees. The MEF predicts that it will only get worse in 2016.
Although the steepest increase in retrenchment numbers are in the oil and gas industry, the banking industry has also seen several retrenchment exercises or voluntary separation schemes being implemented. The legal industry has also been affected, with many medium and big law firms either downsizing or freezing hiring.
Let’s take a quick look at the law related to retrenchments. As an employer, when can I retrench employees? Am I free to choose which employees to let go? How much do I have to pay them as severance? As an employee, what are my rights? Can I challenge a retrenchment?