How does the Industrial Relations Act 1967 protect dismissed employees?

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The Industrial Relations Act 1967 Safeguards Dismissed Employees Through a Structured Dispute Resolution Process

The Industrial Relations Act of 1967 provides a framework for dismissed employees to seek redress. Under Section 20, an employee who believes their dismissal was unjust has a 60-day window to approach the Director-General of Industrial Relations. The Department of Industrial Relations then acts as a mediator, facilitating discussions between the employer and employee to achieve an amicable settlement. If no agreement is reached, the case can be escalated to the Minister of Human Resources, who determines if it warrants referral to the Industrial Court for a final decision.
Employee Recourse Within 60 Days of Dismissal

Employees who feel they have been unfairly dismissed are granted a specific timeframe under the Industrial Relations Act of 1967. Section 20 of the Act mandates that such employees must contact the Director-General of Industrial Relations within 60 days of their dismissal. This initial step is crucial for initiating the process of seeking a resolution outside of immediate legal action.
Mediation and Amicable Settlement Efforts

Following the employee's complaint, the Department of Industrial Relations intervenes to facilitate a settlement. This involves organising reconciliatory meetings where the department acts as a mediator. The primary objective of these meetings is to help the employer and employee reach an amicable agreement, thereby avoiding the need for further legal proceedings and associated costs.
Escalation to the Minister and Industrial Court

Should the mediation efforts prove unsuccessful in resolving the dispute, the case is then referred to the Minister of Human Resources. The Minister holds the authority to decide whether the matter should be escalated to the Industrial Court. This referral is a significant step, moving the dispute from a conciliatory stage to a formal judicial process.
Industrial Court Proceedings and Potential Awards

At the Industrial Court, employees have the opportunity to present their case formally, supported by witness testimonies. If the court finds that the dismissal was indeed unjust, it can award remedies to the employee. These remedies typically include reinstatement to their former position, although this is rarely granted, and back wages, or compensation in lieu of both reinstatement and back wages. In 2016, for instance, the Industrial Court awarded approximately RM21.8 million against firms in unfair dismissal cases.

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How does the Industrial Relations Act 1967 protect dismissed employees?

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