One-Stop HR Information Centre

October 8, 2006

Termination vs Dismissal

Definition of termination according to dictionary is an action of bringing something to an end, while dismissal is the action of removing somebody, especially an employee from a position.  

According to Malaysia’s industrial law, termination means termination of the employment relationship and it is usually identified with the termination of employment contract, while dismissal is a particular kind of termination, which involves misconduct.

Lawful Termination (without notice) According to Malaysia’s Employment Act

Section 13(1) EA — Either party may terminate the contract of employment without notice by paying to the other an indemnity equal to the amount of wages that would have accrued to that party during the required period of notice.

Section 13(2) EA — Either party may terminate the contract of employment without notice if either party has willfully breached a term of condition of the contract of employment.

Section 15(1) EA — An employer will have deemed to have breached the contract of service if he fails to pay wages to the employee within the perioed as stipulated in Part III of the Employment Act 1955.

Section 15(@) EA — An employee has been continuously absent from work for more than two consecutive working days without prior permission from his employer or where he has no reasonable excuse of such absence; or without informing or attempting to inform his employer of such an excuse prior to, or at the earlier opportunity, during such absent.

Section 60(f)(2)(b) EA — An employee does not inform or does not attempt to inform his employer of any sick leave given by a medical officer within 48 hours of the commencement of the sick leave.

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