Exposure Calculator

This calculator gives you a quick estimate of the maximum potential financial exposure if the Industrial Court finds that an employee in Malaysia was dismissed without just cause or excuse. Backwages are capped under the Second Schedule of the Industrial Relations Act 1967, and compensation in lieu of reinstatement follows the established practice of the Industrial Court. If you need advice on your specific situation, please contact us.

Backwages are capped at 24 months’ salary, plus compensation in lieu of reinstatement of 1 month’s salary for each year of service.

Backwages:

Monthly salary × 24 months

Compensation:

Monthly salary × years of service

Note: This calculator estimates the maximum potential award only. Actual awards are at the discretion of the Industrial Court and may be lower, for example after deductions for post-dismissal earnings, benefits already received or contributory misconduct. It does not take into account any other claims or costs and does not constitute legal advice.

Maximum Award by Employee Status

Employee Status

Maximum Potential Award

Confirmed Employee
Backwages of up to 24 months’ salary, plus compensation in lieu of reinstatement of 1 month’s salary for each year of service
Probationer
Backwages of up to 12 months’ salary; generally no compensation in lieu of reinstatement
Fixed-Term Contract Employee
Salary for the balance of the unexpired term of the contract

Factors That May Reduce the Award

Factor

Effect on the Award

Post-dismissal earnings
Earnings from new employment after the dismissal may be deducted from the backwages
Contributory misconduct
The award may be reduced where the employee’s own conduct contributed to the dismissal
Benefits already received
Payments such as retrenchment or termination benefits may be taken into account