I was dismissed while on probation. Can I claim unfair dismissal?

Three months into a six-month probation, you are told "it's not working out" and asked to leave the same day. Many employees assume a probationer can be let go for any reason. That is not the position under Malaysian industrial law.

A probationer is still protected

Section 20 of the Industrial Relations Act 1967 applies to a workman who considers he has been dismissed without just cause or excuse (s.20(1)). It does not exclude probationers. The Second Schedule expressly refers to "a probationer who has been dismissed without just cause or excuse", confirming that probationers can bring a claim.

The 60-day deadline

Representations must be filed with the Director General of Industrial Relations within 60 days of the dismissal, or within 60 days after the notice period ends if you were dismissed with notice (s.20(1A)).

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What the Industrial Court examines

Probation is a period in which the employer assesses whether the employee is suitable. The Court, acting on equity, good conscience and the substantial merits (s.30(5)), will usually consider:

• Was there a genuine assessment? Was performance actually reviewed, and against what standards?
• Was the probationer told of shortcomings and given guidance and a fair chance to improve?
• Was the reason the real reason? Or was probation used as cover for another motive?
• Did the employer follow its own probation terms, such as reviews, extensions and notice?

The employer will need to explain why it ended the probation and produce records.

Probation, confirmation and extensions

Your appointment letter usually sets the length of probation and whether it can be extended. If the probation period ends and the employer does nothing, whether you are treated as confirmed depends on the terms of your contract and how the parties behaved. Either way, the employer must still have just cause or excuse to dismiss you. Keep any written confirmation, extension letters and performance reviews, because the Court will look at what was actually done during the probation period, not only what the contract says.

Remedies

If the dismissal is found to be without just cause or excuse, the Court may order reinstatement or compensation in lieu, and backwages. For a probationer, backwages are capped at 12 months from the date of dismissal based on last-drawn salary (Second Schedule, para 2), with deductions for post-dismissal earnings and no compensation for future earnings.

What should I do first?

1. Ask for the reason in writing if none was given.
2. Keep your appointment letter, probation terms, appraisal forms and emails.
3. Write down what happened, including any feedback you received.
4. Diarise the 60-day deadline.
5. File representations with the Industrial Relations Department.

Example

A sales executive on probation receives no appraisal and no warnings. After a dispute with a manager, she is dismissed for "unsatisfactory performance". She files representations within 60 days. The employer cannot show any assessment or feedback, and the Industrial Court finds the dismissal was without just cause.

Common mistakes

• Believing probationers have no rights.
• Waiting for the probation period to end before acting.
• Not keeping appraisal forms or emails.
• Resigning when asked instead of insisting on a written termination.

When to speak to a lawyer

Speak to a lawyer soon after the dismissal, especially if you were not told of any shortcomings or suspect another motive. See our employment page; you can also contact us.

Frequently asked questions

Can my employer extend my probation?

Usually only if the contract allows it. Check your appointment letter and any written notice of extension.

I was asked to resign instead. Does that matter?

A forced resignation can amount to a dismissal, but it is harder to prove. Keep evidence of the pressure placed on you.

Is a probationer entitled to notice?

Check your contract and, if it applies to you, the Employment Act 1955. Notice is separate from whether the dismissal was with just cause.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Industrial Relations Act 1967 (Act 177), including section 20, AGC Laws of Malaysia
2. Industrial Court of Malaysia (Mahkamah Perusahaan), official portal

Fact-checked on 18 Oct 2026