Redundancy Termination
An employment relationship in Malaysia may be terminated for redundancy. Special provisions under the 1980 Regulations govern termination by retrenchment or the take-over or cessation of a business, and mandate that retrenched EA employees are entitled to specific termination indemnities. In a retrenchment situation, employers should select the employees of the same category to be retrenched based on objective criteria.The Malaysian Code of Conduct for Industrial Harmony, which is not legally prescribed by legislation (but is taken note of by the Industrial Court), provides guidelines for the selection of affected employees.The guidelines specify the following criteria: