Industrial Court Procedure in Malaysia: A Practical Guide to Unfair Dismissal Claims

Most employees who say they want to “take their employer to the Industrial Court” imagine that the first step is to file a case at the Court registry.

That is not how the process works.

In an unfair dismissal case, the employee must first file a representation with the Department of Industrial Relations Malaysia. The matter then goes through conciliation. Only if it cannot be settled will it be referred to the Industrial Court.

From there, the case proceeds through pleadings, case management, witness evidence, cross-examination, submissions and, eventually, an award.

Although the Industrial Court is actually a tribunal and is less technical than an ordinary civil court, its proceedings should not be taken lightly. A claim may turn on how the case is pleaded, which documents are produced, who bears the burden of proof and how witnesses perform under cross-examination.

This guide explains the Industrial Court procedure in Malaysia, particularly for claims of dismissal without just cause or excuse under section 20 of the Industrial Relations Act 1967.

What Is the Industrial Court of Malaysia?

The Industrial Court is a specialist tribunal established under the Industrial Relations Act 1967.

It hears and determines employment-related disputes referred or brought to it under the Act, including:

claims of dismissal without just cause or excuse;
trade disputes;
disputes concerning collective agreements;
complaints of non-compliance with Industrial Court awards;
trade union victimisation matters; and
applications to interpret or vary certain awards or collective agreements.

For most individual employees, the Industrial Court is best known as the forum that determines unfair dismissal and constructive dismissal claims.

The Industrial Court should not be confused with the Labour Court.

The Labour Court, administered by the Department of Labour, generally deals with monetary claims such as unpaid salary, overtime and other statutory or contractual payments within its jurisdiction. The Industrial Court, on the other hand, principally examines whether an employee was dismissed without just cause or excuse and what relief should follow.

What Law Governs Industrial Court Proceedings?

Industrial Court proceedings are principally governed by:

the Industrial Relations Act 1967;
the Industrial Court Rules 1967;
applicable practice directions;
decisions of the Industrial Court and superior courts; and
the Court’s power to regulate its own procedure.

Section 30(5) of the Industrial Relations Act provides that the Court must act according to equity, good conscience and the substantial merits of the case without regard to technicalities and legal form.

This does not mean that parties can ignore procedural directions, filing deadlines or the rules of evidence entirely. It means that the Court is intended to focus on the real employment dispute rather than allow the case to be defeated by unnecessary technicality.

The Industrial Relations Act 1967 and Industrial Court Rules 1967 provide the basic statutory framework.

Can an Employee File a Case Directly in the Industrial Court?

Generally, no.

An employee pursuing an unfair dismissal claim under section 20 must first make a written representation to the Director General for Industrial Relations.

This is important because the Industrial Court is a creature of statute. It can only exercise the jurisdiction given to it under the Industrial Relations Act.

A letter of complaint sent directly to the Industrial Court does not replace a proper section 20 representation.

Step 1: Filing a Representation for Unfair Dismissal

Section 20(1) of the Industrial Relations Act permits a workman who considers that they were dismissed without just cause or excuse to make a written representation for reinstatement.

The representation is filed with the Department of Industrial Relations Malaysia, commonly referred to as the JPPM or JPP.

It may presently be submitted through the Department’s online IRIS system or lodged with the appropriate Industrial Relations Department office. The official filing information is available from the Department of Industrial Relations Malaysia.

The 60-day deadline

The representation must be filed within 60 days of the dismissal.

Where the employee is dismissed with notice, the representation may be filed during the notice period, but no later than 60 days after the notice expires.

This deadline is critical. It is not something an employee should assume can be extended merely because:

internal discussions are continuing;
the employer promised to reconsider;
an internal appeal is pending;
the employee is negotiating a settlement;
the employee lodged a complaint with another government department; or
the employee was unaware of the legal deadline.

As a practical rule, an employee who believes they have been unfairly dismissed should record the effective date of dismissal and obtain advice immediately.

Facing an unfair dismissal claim or Industrial Court proceeding? Get in touch. Looking for a broader overview of dismissal rights, workplace disputes and Malaysian employment legislation, read Employment Law Malaysia: The Complete Guide for Employees and Employers (2026).

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The representation must seek reinstatement

A section 20 representation is statutorily framed as a representation for reinstatement to the employee’s former employment.

An employee should not treat it merely as an ordinary claim for damages or unpaid money.

In practice, reinstatement may no longer be realistic by the time the case is decided. The relationship may have broken down, the position may no longer exist or the employee may have obtained alternative employment.

The Industrial Court may then award compensation in lieu of reinstatement. Nevertheless, the claim begins with the statutory remedy of reinstatement.

Step 2: Conciliation at the Industrial Relations Department

After the representation is filed, the Department will ordinarily arrange a conciliation meeting.

Conciliation is not yet the Industrial Court trial. It is a facilitated process intended to determine whether the employee and employer can resolve the dispute without formal adjudication.

An Industrial Relations officer will usually:

identify the nature of the dismissal;
hear the respective positions of the parties;
clarify the issues in dispute;
explore whether reinstatement or a financial settlement is possible; and
assist the parties in negotiating a resolution.

The conciliating officer does not conduct a trial or decide whether the dismissal was fair.

What happens during conciliation?

The process is ordinarily less formal than court proceedings. Each side may explain its position and provide relevant documents.

The employee may rely on matters such as:

the termination letter;
the employment contract;
warning letters;
performance records;
show-cause correspondence;
domestic inquiry documents;
emails and messages; and
a chronology of events.

The employer may explain the reason for dismissal and the basis on which it says the termination was justified.

There is often a practical advantage in settling at this stage. Both parties avoid the cost, delay and uncertainty of a full Industrial Court proceeding. However, any settlement should be properly documented and should clearly address matters such as payment, tax, confidentiality, withdrawal of the representation and whether there is any admission of liability.

Can a lawyer attend the conciliation meeting?

Legal practitioners are generally excluded from representing a party at a section 20 conciliation meeting.

Following the 2020 amendments, an employee or employer may, subject to the Director General’s permission and written authorisation, be represented by another person who is not an advocate and solicitor.

A lawyer may advise a party behind the scenes, review the settlement terms or help the party prepare for conciliation, but cannot simply assume a right to appear at the meeting.

Step 3: Referral to the Industrial Court

Before 1 January 2021, the Minister of Human Resources exercised a filtering discretion over whether an unresolved representation should be referred to the Industrial Court.

That position has changed.

Under the amended section 20(3), where the Director General is satisfied that there is no likelihood of the representation being settled, the Director General must refer it to the Industrial Court for an award.

This removed the former ministerial filtering stage and allows the merits of the dismissal to be decided by the Industrial Court itself.

Once the matter is referred, it will be registered and assigned an Industrial Court case number.

Step 4: Mention and Case Management

The Industrial Court will ordinarily fix the matter for a mention or case management before the Chairman or an authorised court officer.

This stage is used to organise the case rather than hear the full evidence.

Directions may be given for:

filing the Statement of Case;
filing the Statement in Reply;
filing a Rejoinder;
preparing an agreed bundle of documents;
filing witness statements;
identifying disputed documents;
preparing agreed facts or issues;
filing submissions on preliminary objections; and
fixing hearing dates.

Parties should treat case-management directions seriously. Although the Court is not overly technical, it has powers under section 29 of the Industrial Relations Act to regulate proceedings and may proceed with a matter where a party fails to comply or attend.

A claimant who repeatedly fails to attend or prosecute the case risks having the claim struck out. An employer that ignores the proceedings risks the case being heard in its absence.

Step 5: The Employee Files a Statement of Case

In an unfair dismissal matter, the dismissed employee is usually referred to as the Claimant, while the employer is referred to as the Company.

The Claimant will ordinarily be directed to file a Statement of Case under rule 9 of the Industrial Court Rules 1967.

The Statement of Case performs a role similar to a Statement of Claim in civil proceedings. It sets out the material facts and the relief sought.

It will commonly address:

the commencement of employment;
the employee’s position and remuneration;
the relevant employment terms;
the events leading to the dismissal;
the manner and effective date of dismissal;
why the stated reason is disputed;
any relevant disciplinary or performance process;
why the dismissal allegedly lacked just cause or excuse; and
the remedy sought.

The Statement of Case should tell a coherent factual story. It should not merely say, “I was dismissed unfairly,” followed by a bundle of documents and an expectation that the Court will work out the rest.

At the same time, it should avoid becoming a witness statement containing every conversation the employee ever had at work.

The important task is to identify the material facts and legal basis of the claim.

Time for filing

The Industrial Court Rules refer to a seven-day period from service of the relevant notice, subject to any extension permitted by the President. In practice, parties must follow the particular deadline stated in the Court’s notice or case-management direction.

If more time is genuinely required, an extension should be requested before the deadline rather than after it has expired.

Step 6: The Employer Files a Statement in Reply

After receiving the Statement of Case, the Company will be directed to file a Statement in Reply under rule 10 of the Industrial Court Rules.

The Statement in Reply should identify:

which facts are admitted;
which facts are denied;
the actual reason for dismissal;
the evidence supporting that reason;
the disciplinary, performance or redundancy process followed;
any preliminary objections;
any allegation of contributory misconduct; and
why the Company says the dismissal was with just cause or excuse.

This document is particularly important because an employer generally cannot dismiss an employee for one reason and then attempt to defend the case using a completely different reason discovered later.

In Goon Kwee Phoy v J & P Coats (M) Bhd [1981] 1 MLJ 129, the Federal Court held that where an employer gives a reason for dismissal, the Industrial Court must examine whether that reason existed.

More recently, the Federal Court in Maritime Intelligence Sdn Bhd v Tan Ah Gek [2021] 4 MLJ 719 reaffirmed that the Court’s inquiry is directed towards the reasons operating in the employer’s mind at the time of dismissal. An employer should not dismiss first and search for justification later.

Step 7: The Employee May File a Rejoinder

Under rule 11 of the Industrial Court Rules, the Claimant may (or may be directed to) file a Rejoinder.

The Rejoinder should respond to new matters raised in the Statement in Reply. It is not intended to rewrite the entire Statement of Case or introduce an unrelated claim.

For example, the Rejoinder may address:

a newly pleaded allegation of misconduct;
the Company’s version of a disputed meeting;
an allegation that the employee resigned;
a claim that the employee abandoned employment;
performance documents relied upon by the Company; or
an assertion that the position became redundant.

Once these pleadings are complete, the parties and the Court should be able to identify the real issues requiring determination.

Step 8: Preparing the Documents

The parties will ordinarily prepare one or more bundles of documents for use at the hearing.

These may include:

the employment contract;
employee handbooks and policies;
payslips;
appraisal records;
warning letters;
show-cause letters and replies;
domestic inquiry records;
emails and WhatsApp messages;
medical certificates;
attendance records;
retrenchment documents;
organisation charts;
termination correspondence; and
documents relating to post-dismissal earnings.

Where possible, documents should be organised chronologically and paginated clearly.

Agreed and disputed documents

The inclusion of a document in a bundle does not necessarily mean that every aspect of it is admitted.

The parties may need to distinguish between:

documents whose existence and contents are agreed;
documents whose authenticity is disputed;
documents admitted without accepting the truth of their contents; and
documents requiring proof through a witness.

This distinction matters. An unsigned spreadsheet created for litigation does not become reliable evidence simply because it was placed in a bundle.

Electronic evidence should also be preserved carefully. Screenshots, emails, system logs and messaging records may require supporting evidence explaining where they came from and why they are authentic.

Step 9: Witness Statements

The Court may direct the parties to prepare written witness statements.

A witness statement ordinarily contains the questions to be asked and the witness’s answers. It becomes the witness’s evidence-in-chief after it is adopted under oath or affirmation at the hearing.

Witness statements help shorten the hearing because the witness does not have to give their entire narrative orally from the beginning.

A proper witness statement should:

identify the witness;
explain their role and knowledge of the events;
present the facts in a logical sequence;
refer accurately to relevant documents;
address the issues within the witness’s personal knowledge; and
avoid exaggerated legal conclusions.

A witness should not say that a dismissal was “lawful and with just cause or excuse” as if merely repeating the statutory phrase proves the case. The witness should explain what happened. The Court decides the legal effect.

Witness statements must also reflect the witness’s actual evidence. A beautifully drafted statement is of little assistance if the witness cannot explain or defend it during cross-examination.

Step 10: Representation in the Industrial Court

An employee may appear personally in the Industrial Court.

Depending on the circumstances, a party may also be represented by:

an officer or employee of a relevant trade union;
an authorised employee of the employer;
an officer or employee of an employers’ organisation; or
a legal practitioner.

However, representation by an advocate and solicitor is not automatic. Under section 27 of the Industrial Relations Act, a legal practitioner may appear with the permission of the President or Chairman.

An application for permission is ordinarily made in the prescribed form under the Industrial Court Rules.

Permission is commonly granted, particularly in legally or factually complex dismissal cases, but the statutory requirement should not be overlooked.

Step 11: Preliminary Issues

Before the main trial, the Company may raise a preliminary objection.

Common preliminary issues include:

whether there was a dismissal at all;
whether the claimant was a “workman” under the Act;
whether the representation was filed within 60 days;
whether the correct employer has been named;
whether the Industrial Court has jurisdiction;
whether the matter has already been settled;
whether the claimant resigned voluntarily; and
whether the claim is barred by an earlier binding agreement.

The Court may hear the preliminary objection separately or together with the merits, depending on whether doing so will save time and costs.

Parties should be cautious about assuming that every disputed issue should be converted into a preliminary objection. If the issue depends heavily on the same witnesses and facts as the dismissal itself, the Court may prefer to hear everything together.

Step 12: The Industrial Court Hearing

An Industrial Court trial resembles a civil trial, although its procedure is generally more flexible.

Witnesses give evidence under oath or affirmation and may be:

examined in chief;
cross-examined by the opposing party; and
re-examined on matters arising from cross-examination.

The Chairman may also ask questions.

The Court is not strictly bound by all the technical rules applied in ordinary civil courts. However, evidence must still be relevant and sufficiently reliable.

Section 30(5) requires the Court to decide according to equity, good conscience and the substantial merits of the case. It does not authorise the Court to decide based on speculation or ignore fundamental fairness.

Who Presents Their Evidence First?

The order of witnesses depends on the issues in dispute.

Where dismissal is admitted

If the Company admits that it dismissed the Claimant but says the dismissal was justified, the Company will commonly begin by presenting evidence of the reason for dismissal.

Once the dismissal is established, the employer generally bears the burden of proving just cause or excuse.

In Wong Yuen Hock v Syarikat Hong Leong Assurance Sdn Bhd [1995] 2 MLJ 753, the Federal Court explained that in a misconduct dismissal the Court must determine:

whether the misconduct was established; and
whether the proven misconduct constituted just cause or excuse for dismissal.

These are separate questions. Proving that an employee committed a breach does not automatically establish that dismissal was proportionate.

Where dismissal is disputed

If the Company says that the Claimant resigned, abandoned employment or was never dismissed, the Claimant must first prove that a dismissal occurred.

Only after dismissal is established does the burden generally shift to the employer to justify it.

Constructive dismissal cases

In a constructive dismissal claim, the employee resigned but argues that the employer’s fundamental breach left them with no real choice but to do so.

The Claimant generally bears the burden of proving:

a fundamental breach by the employer;
that the breach entitled the employee to treat the contract as terminated;
that the employee resigned in response to that breach; and
that the employee did not wait so long as to affirm the contract.

The order of evidence will therefore usually differ from an ordinary direct-dismissal case.

What Standard of Proof Does the Industrial Court Apply?

The applicable standard in Industrial Court proceedings is generally the balance of probabilities.

In Telekom Malaysia Kawasan Utara v Krishnan Kutty Sanguni Nair & Anor [2002] 3 CLJ 314, the Court of Appeal confirmed that the civil standard applies in Industrial Court proceedings, including where the alleged misconduct may also amount to a criminal offence.

An employer does not have to prove theft or fraud beyond a reasonable doubt as though it were conducting a criminal prosecution.

However, the seriousness of the allegation affects the quality and cogency of the evidence required. A grave allegation such as fraud should not be inferred casually from an accounting error or incomplete record.

Does a Domestic Inquiry Decide the Industrial Court Case?

No.

A domestic inquiry is an internal process conducted by the employer. Its findings do not bind the Industrial Court.

The Industrial Court hears the evidence and decides for itself whether the alleged misconduct occurred and whether it justified dismissal.

In Hong Leong Equipment Sdn Bhd v Liew Fook Chuan [1996] 1 MLJ 481, the Court of Appeal explained that the Industrial Court’s task is to determine the merits of the dismissal rather than merely review the employer’s domestic inquiry.

This also means that the absence of a domestic inquiry is not necessarily fatal to the employer’s defence before the Industrial Court. The employer may attempt to prove the misconduct through evidence given at trial.

Nevertheless, a fair domestic inquiry remains valuable. It gives the employee an opportunity to answer the allegations while events are still fresh and helps the employer test its evidence before making an irreversible decision.

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Step 13: Written or Oral Submissions

After the evidence is completed, the Court will ordinarily direct the parties to make oral or written submissions.

Written submissions commonly address:

the issues requiring determination;
the relevant evidence;
inconsistencies in witness testimony;
the applicable statutory provisions;
relevant case law;
whether the dismissal was proved;
whether the employer established just cause or excuse;
proportionality;
contributory misconduct; and
the appropriate remedy.

The submissions should connect the law to the evidence.

Merely attaching a long list of reported cases is rarely helpful. The Court needs to know what principle each authority establishes and how it applies to the particular facts.

The parties may also be permitted to file written submissions in reply.

Step 14: The Industrial Court Award

After considering the evidence and submissions, the Chairman will issue a written decision known as an Award.

The Award will ordinarily set out:

the background facts;
the parties’ respective cases;
the issues for determination;
the relevant evidence;
the Court’s findings;
the applicable legal principles; and
the relief granted or the dismissal of the claim.

The Award may be published on the Industrial Court’s database and can generally be accessed through the Court’s official platforms.

What Remedies Can the Industrial Court Award?

The primary statutory remedy under section 20 is reinstatement.

If reinstatement is ordered, the employee returns to their former employment, subject to the terms of the Award.

In many cases, however, reinstatement is considered impracticable because:

the employment relationship has broken down;
substantial time has passed;
the position no longer exists;
trust and confidence cannot realistically be restored; or
the employee has secured other employment.

The Court may instead award:

back wages;
compensation in lieu of reinstatement; or
both, subject to the Industrial Relations Act and the circumstances.

Back wages

Under the Second Schedule to the Industrial Relations Act:

back wages for a confirmed employee are generally limited to a maximum of 24 months; and
back wages for a probationer are generally limited to a maximum of 12 months.

These are maximum limits, not automatic entitlements.

The Court may make deductions or reductions after considering:

post-dismissal earnings;
contributory misconduct;
the circumstances of the case; and
other relevant statutory factors.

The Court does not award compensation for future earnings under the Second Schedule.

Compensation in lieu of reinstatement

A commonly applied starting point is one month’s salary for each completed year of service.

This is not an inflexible statutory formula. The Court retains discretion and will consider the particular circumstances.

Post-dismissal earnings

An employee should disclose earnings received after dismissal.

In Dr James Alfred (Sabah) v Koperasi Serbaguna Sanya Bhd (Sabah) & Anor [2001] 3 CLJ 541, the Federal Court considered the relevance of post-dismissal earnings to the assessment of back wages.

An employee is not ordinarily disqualified from relief merely because they found another job. However, the Court must take post-dismissal earnings into account when assessing the appropriate award.

Interest

Following the 2020 amendments, a monetary award carries interest at 8% per annum, or such lower rate as the Court directs, beginning on the 31st day after the Award until payment.

The Court may determine another commencement date where an application is made within the statutory period and special circumstances are established.

Can the Parties Settle After the Case Is Referred?

Yes.

Settlement discussions may continue even after the case reaches the Industrial Court.

The parties may settle at any time before the Award is delivered.

Depending on the terms and procedural posture, the settlement may be recorded through a consent award or followed by a withdrawal of the case.

A settlement agreement should clearly address:

the settlement amount;
the payment deadline;
tax treatment;
whether payment is made without admission of liability;
confidentiality;
non-disparagement, if appropriate;
return of company property;
withdrawal or disposal of the case;
release of claims; and
consequences of non-payment.

A vague settlement recorded hurriedly outside the courtroom can create an entirely new dispute.

What Happens If a Party Does Not Attend?

Section 29 of the Industrial Relations Act gives the Court power to proceed notwithstanding a party’s failure to submit written documents or attend the proceedings.

Where the Claimant repeatedly fails to attend without a reasonable explanation, the Court may strike out the case.

Where the Company fails to attend despite proper notice, the Court may hear the claim in the Company’s absence.

An absent party should not assume the matter will simply be postponed. Any genuine inability to attend should be communicated to the Court promptly and supported by proper reasons or documents.

Can an Industrial Court Award Be Appealed?

Yes.

This is another area where older employment-law resources may no longer reflect the current position.

Effective from 1 January 2021, section 33C of the Industrial Relations Act provides a statutory right of appeal against an Industrial Court Award made under section 30.

A dissatisfied party may appeal to the High Court within 14 days from the date of receipt of the Award.

The appeal follows the procedure applicable under the Rules of Court 2012 to appeals from the Sessions Court, with the necessary modifications. The High Court has corresponding appellate powers.

This is different from the old system, under which Industrial Court awards were generally challenged through judicial review. The current statutory mechanism was introduced by the Industrial Relations (Amendment) Act 2020.

The 14-day deadline is extremely short. A party considering an appeal should obtain advice as soon as the Award is received.

Not every complaint about the Award will justify an appeal. The prospective appellant should identify a proper error concerning the law, evidence, factual findings, procedure or relief granted.

Enforcement of an Industrial Court Award

An Award is binding on the parties specified under section 32 of the Industrial Relations Act.

If a party fails to comply, the successful party may lodge a complaint of non-compliance under section 56.

Where the Court makes an order following such a complaint, the order may be recorded in the High Court or Sessions Court, as applicable, and enforced as a judgment of that court.

Enforcement should not be left until documents or assets become difficult to trace. If payment is not made by the deadline stated in the Award, the successful party should obtain advice on the next procedural step.

How Long Does an Industrial Court Case Take?

There is no single fixed timeline.

The duration depends on matters such as:

whether preliminary objections are raised;
the number of witnesses;
the volume of documents;
the availability of hearing dates;
whether adjournments are requested;
whether interlocutory applications are made;
the complexity of the legal issues; and
whether the case settles.

A straightforward case may conclude relatively quickly, while a heavily contested matter involving many witnesses can take considerably longer.

The passage of time makes early document preservation important. Employees should keep their contracts, termination letters and relevant correspondence. Employers should preserve investigation records, emails, performance documents and witness evidence once a dispute is anticipated.

Practical Advice for Employees

If you believe you were unfairly dismissed:

file the section 20 representation within 60 days;
identify the correct employer;
preserve your employment documents;
prepare a clear chronology;
keep evidence of your post-dismissal job search and earnings;
attend every conciliation and court date;
ensure your Statement of Case matches the real complaint;
identify witnesses while they can still be contacted; and
obtain advice early if the matter involves constructive dismissal or a disputed resignation.

Do not wait for an internal appeal to finish if doing so may cause the 60-day statutory period to expire.

Practical Advice for Employers

Once a section 20 representation is received:

identify the precise reason for dismissal;
preserve the evidence available at the date of dismissal;
appoint an appropriate person to manage the matter;
review the disciplinary or performance process;
identify relevant witnesses;
assess the strengths and weaknesses of the case honestly;
attend conciliation with realistic settlement authority;
ensure the Statement in Reply accurately pleads the defence; and
avoid manufacturing new reasons after the dismissal.

An employer’s case is usually strongest when the reason for dismissal was genuine, properly investigated, communicated clearly and supported by contemporaneous documents.

A large bundle prepared after the dispute began cannot always repair a weak decision-making process.

Final Thoughts

Industrial Court procedure in Malaysia is designed to be less technical than ordinary civil litigation, but the cases themselves are often anything but simple.

A typical unfair dismissal claim passes through several distinct stages: the employee files a section 20 representation, the parties attend conciliation, the unresolved claim is referred to the Industrial Court, pleadings and evidence are prepared, witnesses are examined and the Court delivers its Award.

At every stage, the facts matter.

The termination letter, the employer’s actual reason, the employee’s response, contemporaneous documents and witness credibility will usually carry more weight than polished explanations created after the dispute began.

For a broader overview of dismissal rights, workplace disputes and Malaysian employment legislation, read Employment Law Malaysia: The Complete Guide for Employees and Employers (2026).

This article provides general information on Malaysian employment law and does not constitute legal advice. Industrial Court procedure may vary according to the nature of the reference, current practice directions and directions made in the particular case.