How should an employer deal with a non-performer in Malaysia?

How should an employer deal with a non-performer in Malaysia?

Generally, there are three (3) requirements that need to be satisfied by an employer before it may terminate an employee on ground of poor-performance.

The said three (3) requirements are as decided in numerous cases one of which is in the case of Ireka Construction Berhad -v- Chantiravathan A/L Subramaniam James [1995] 2 ILR 11 wherein the Industrial Court held as follows:-

“As far as unsatisfactory performance is concerned the Industrial Court has laid down that in order to justify the dismissal of the claimant on this ground, the company has to establish:

i) that the claimant was warned about his poor performance (preferably in writing);

ii) that the claimant was accorded sufficient opportunity to improve; and

iii) that notwithstanding the above, the claimant failed to sufficiently improve his performance”


Article by:

Mahadi Muhammad (Owner and Principal Partner)
Law Firm: Messrs Mahadi Redzuan & Co (Advocates & Solicitors) Kuala Lumpur
Email: mrco_legalfirm@ yahoo.com.my

Connect with Mahadi on LinkedIn

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