Unfair dismissal occurs when an employee is terminated without just cause or due process. It generally refers to situations where an employer dismisses an employee without providing a valid reason or following the appropriate legal procedures.
Legal Framework in Malaysia
In Malaysia, unfair dismissal is primarily governed by the Industrial Relations Act 1967. Under this Act, employees who believe they have been unfairly dismissed may lodge a complaint with the Director General of Industrial Relations (DGIR) within 60 days from the date of dismissal. If the dispute is unresolved, it may be referred to the Industrial Court for adjudication. A recent case at the Industrial Court of Malaysia, Mohd Fauzi bin Mohd Shariff vs. Bank Islam Malaysia Berhad, highlights the importance of proper dismissal procedures. The claimant, a Branch Manager, was dismissed for allegedly sleeping at work. However, the court ruled that the dismissal was unreasonable and unjust, considering his good leadership and the branch’s performance under his management. The court awarded the claimant RM240,384 in compensation for wrongful dismissal. This case serves as a crucial reminder for employers that unjust dismissal can lead to costly legal disputes.
How VENOVOX Helps Prevent Unfair Dismissal
Venovox, as a background screening company plays a crucial role in reducing the risks associated with hiring and termination by ensuring that organizations have reliable and verified information about their employees. Here’s how we contribute to preventing unfair dismissal:
Key Contributions of VENOVOX in Preventing Unfair Dismissal
Here’s how we contribute to preventing unfair dismissal:
Pre-Employment Background Checks
Comprehensive background checks help employers make informed hiring decisions, reducing the likelihood of hiring individuals who may later face termination due to misconduct or performance issues. These checks include: Employment history verification Criminal record checks Education and qualification verification Reference checks
Character Assessments
At Venovox, we also offer personality and integrity assessments that help employers understand a potential candidate’s work ethic, risk factors, and overall suitability for the role. This minimizes the chances of hiring employees who may not align with company values and policies.
Compliance with Employment Laws
We ensure that hiring processes are aligned with legal and regulatory frameworks to help employers avoid discriminatory hiring practices and wrongful terminations.
Ongoing Employee Monitoring
We also provide post-employment screening and periodic assessments to allow companies to track behavioural changes, ensuring early intervention before minor issues escalate into grounds for dismissal.
Reducing Legal and Financial Risks
With proper screening in place, employers can defend against unfair dismissal claims by demonstrating that: The employee was hired based on merit and suitability Any dismissal decision was backed by verified misconduct or poor performance Due process was followed in handling employee disputes
Key Takeaways for Employers and HR Professionals
Prevention is Better Than Cure – A strong screening process reduces the chances of hiring employees who may later become liabilities. Document Everything – Proper record-keeping of background checks, performance evaluations, and disciplinary actions is crucial for defending against wrongful termination claims.
Additional Takeaways
Follow Due Process – Even with a solid screening system, terminations should always follow proper legal and procedural frameworks. Build a Fair and Transparent Workplace – Ensuring fairness in hiring, performance management, and termination minimizes risks of disputes and legal challenges.
Building a Secure Workforce with VENOVOX
“Fair Hiring Builds a Secure Workforce!” Partner with VENOVOX today to build a safer, more compliant, and trustworthy workforce.
Conclusion
Unfair dismissal is a critical employment issue that can lead to legal disputes, financial losses, and reputational damage for both employers and employees. By implementing robust employee screening procedures, organizations can reduce hiring risks, ensure compliance with employment laws, and foster a fair and transparent workplace. At VENOVOX, we specialize in comprehensive background screening solutions that empower businesses to make well-informed hiring decisions while protecting them from potential legal liabilities.
Dato' Venodevan
Risk is an opportunity