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Can You Skip Your Notice Period When Resigning in Malaysia?

Chloe Chan
by Chloe Chan
Apr 17, 2024 at 2:32 PM

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Almost every employer and employee has gone through the process of resigning at some point in their careers—it's part of work life and needs to be handled with care. Employers try not to get in the way of their employees' personal goals and career paths, while employees have to think about how leaving will affect the business and the whole organization.

That's why most employment contracts have a notice period written into them. But many employees wonder: Is there a legal way to leave your job without having to wait out the notice period in Malaysia?

 

How long is the notice period in Malaysia?

In Malaysia, the Employment Act 1955 states that the notice period (from both the employee and employer) depends on what's written in your job contract. But if your contract doesn't mentioned anything about the notice period, you can check the EA for the minimum notice period (starting from when you resign):

  • 4 weeks if you've worked for less than 2 years
  • 6 weeks if you've worked for at least 2 years but less than 5 years
  • 8 weeks if you've worked for at least 5 years

It's important to know that the Employment Act only applies to West Malaysia, and it covers certain types of employees, like those who earn a monthly wage of RM2,000 or less, manual labor workers, domestic servants, and others listed in the First Schedule of the EA 1955.

If you're thinking about resigning, make sure to check your job contract first. Actually, it's a good idea to know about the notice period in your job contract before you even start working at the company.

 

How to Legally Skip Your Notice Period

If you want to leave your current job sooner than planned, you can try talking to your employers or HR department first. Negotiating with them is usually the easiest way to figure out a good time for you to leave. You can discuss a time that works for both sides, making sure there's enough time for you to hand over your tasks properly.

Another thing you can do is use any leftover annual leave days to reduce your notice period. It might not be enough to skip the whole notice period, but it could help you leave earlier. Just remember, your employer might not agree to this, and they might pay you instead of letting you use your annual leave days.

If you really need to leave earlier and your employer agrees, you might have the option to buy out your notice period. This means you pay your employer an amount equal to your monthly salary for each month of notice you're skipping. Check your employment contract to see if this option is available.

Sometimes, your new employer might be willing to cover the cost of buying out your notice period if they need you to start working for them sooner than your notice period allows.

Make sure to check your employment contract for any details about the notice period and whether you can pay to leave earlier. Your new employer might also help with this if they need you to start working for them sooner.

 

Do Employees Need to Provide a Resignation Letter When Leaving Their Job?

Yes, employees are required to provide a resignation letter when they decide to leave their job. It's best to resign in person and give your employer enough notice.

Starting from January 1, 2023, the Employment Act ("EA") will cover all workers, except for sections about overtime pay and termination benefits, which won't apply to workers earning more than RM4000 per month.

According to Section 12(1) of the Employment Act, either the employer or the employee can end the employment contract by giving notice to the other party.

"Either party to a contract of service may at any time give the other party notice of his intention to terminate such contract of service."

 

What Happens When an Employee Refuses or Is Unable to Give Notice of Resignation?

In most cases, it's expected to give notice when you decide to leave your job. Following the terms of your contract is professional and respectful, as it's usually a requirement in Malaysian employment contracts.

However, there are times when you might not be able to work during your notice period, so skipping it might be your best option. Here are some situations where this might happen:

  • Leaving for a better-paying job
  • Moving to a new city or country
  • Resigning due to issues with your employer or colleagues
  • Going back to school
  • Health problems
  • Other personal reasons

If you decide to skip your notice period for any of these reasons (or others), you can do so under Section 13(1) of the Employment Act.

"Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given under Section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice."

In simpler terms:

  1. If an employee ends their work contract and quits without giving any notice, their employer is entitled to compensation.
  2. This compensation should be equal to the wages the employee would have earned during the notice period.

 

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