Understanding notice period rules in Malaysia is crucial for both employees and employers. Whether you are planning to resign, facing termination, or managing staff exits, knowing how notice periods work can help you avoid disputes, salary deductions, or legal trouble.
In Malaysia, notice periods are governed mainly by the Employment Act 1955, along with employment contracts and Industrial Court decisions. This guide explains everything clearly—who must give notice, how long it should be, and what happens if notice is not served.
This article is written for employees, fresh graduates, HR teams, and employers who want clear and practical guidance.
What Is a Notice Period in Malaysia?
A notice period is the amount of time an employee or employer must give before ending an employment relationship. During this period, the employee continues working as usual, and the employer continues paying salary and benefits.
The notice period allows:
- Employers to arrange replacements or handovers
- Employees to transition smoothly to a new job
- Both parties to exit professionally and legally
Many people confuse the notice period with the last working day. The notice period refers to the duration of notice, while the last working day is the final day of employment after the notice is fully served.
Notice Period Rules Under the Employment Act 1955
Statutory Notice Period in Malaysia
If an employment contract does not clearly state a notice period, the Employment Act 1955 provides the minimum legal notice period based on length of service:
| Length of Service | Minimum Notice Period |
| Less than 2 years | 4 weeks |
| 2 years to less than 5 years | 6 weeks |
| 5 years or more | 8 weeks |
These statutory notice periods apply to both:
- Employee resignation
- Employer termination
They act as a legal safety net when contracts are silent or unclear.
Contractual Notice Period vs Statutory Notice
Most employment contracts in Malaysia specify a notice period, commonly:
- 1 month
- 2 months
- 3 months (senior roles)
When a contract clearly states a notice period:
- The contractual notice period usually applies
- It must not violate minimum legal protections
If there is a conflict:
- The longer or fairer provision is generally enforced
- Employers cannot reduce statutory minimums through contracts
Employees should always check their employment contract before resigning.
Notice Period During Probation
A common question is whether probationary employees must serve notice.
The answer is yes—probationary employees still have notice obligations.
Typical probation notice periods:
- 1 week
- 2 weeks
- Sometimes 1 month
If the contract states a probation notice period, that applies.
If the contract is silent, statutory rules under the Employment Act may still apply.
Probation does not mean:
- No notice required
- Employers can terminate freely without consequences
Probationary employees still have legal protection.
Can an Employee Resign Without Serving Notice?
Yes, but only under specific conditions.
Payment in Lieu of Notice
An employee may resign immediately by paying payment in lieu of notice, which equals:
- Salary for the unserved notice period
Example:
- 1-month notice
- Immediate resignation
- Employee pays 1 month’s salary to employer
Absconding (Not Recommended)
Leaving without notice and without payment is risky. Consequences may include:
- Salary deduction
- Legal claims
- Negative employment records
Absconding is not illegal, but it exposes employees to contractual and financial consequences.
Can Employers Terminate Without Notice?
Employers may terminate without notice only in limited situations, such as:
- Serious misconduct
- Theft or fraud
- Violence or gross insubordination
This is known as summary dismissal.
However:
- Employers must still conduct proper inquiry
- Unfair dismissal claims may arise
- Industrial Court often favours procedural fairness
For poor performance or restructuring, notice or payment in lieu is usually required.
Payment in Lieu of Notice in Malaysia
Payment in lieu of notice means compensating the other party instead of serving the notice period.
Who Can Pay?
- Employee → employer (for early resignation)
- Employer → employee (for immediate termination)
How Is It Calculated?
Typically based on:
- Basic salary
- Fixed allowances (depending on contract)
Employers cannot force employees to accept payment in lieu unless stated in the contract.
What Happens If Notice Period Is Not Followed?
If the Employee Fails to Serve Notice
Possible consequences:
- Salary deduction
- Legal claim for damages
- Loss of final salary or benefits
If the Employer Fails to Give Notice
Possible consequences:
- Compensation claims
- Industrial Court action
- Reinstatement or back pay
There is no legal “blacklist”, but poor exits can affect future references.
What Employees Should Do Before Resigning
Before submitting a resignation letter:
- Review your employment contract carefully
- Confirm your correct notice period
- Calculate payment in lieu if applicable
- Prepare a proper handover
- Keep resignation professional and documented
Understanding employee rights in Malaysia helps protect your career and finances during job transitions.
Notice Period FAQs (People Also Ask)
What is the minimum notice period in Malaysia?
The minimum notice period ranges from 4 to 8 weeks, depending on length of service, if the contract does not specify otherwise.
Is notice period mandatory under Malaysian law?
Yes. Notice or payment in lieu is legally required unless termination involves serious misconduct.
Can I resign without notice in Malaysia?
Yes, by paying payment in lieu of notice equal to the unserved notice period.
Can my employer terminate me without notice?
Only for serious misconduct. Otherwise, notice or payment in lieu is required.
Does probation have a notice period in Malaysia?
Yes. Probationary employees are still subject to notice requirements stated in the contract or law.
What happens if I don’t serve my notice period?
Your employer may deduct salary or claim damages according to your contract.
Can salary be deducted for not serving notice?
Yes, if allowed under the contract and employment law.
Which law governs notice period in Malaysia?
The Employment Act 1955 is the main law governing notice periods.
Final Thoughts: Know Your Notice Period Before You Resign
Notice periods are not just formalities—they are legal obligations that protect both employees and employers. By understanding notice period rules in Malaysia, you can resign or terminate employment confidently and professionally.
Always:
- Read your contract
- Know your rights
- Act lawfully and transparently
This knowledge can save you time, money, and unnecessary stress.
