What Happens If You Don’t Serve Your Notice Period in Malaysia?

What Happens If You Don’t Serve Notice Period in Malaysia?

Resigning from a job in Malaysia may sound simple, but it gets tricky once the notice period comes into play. Many employees wonder, “Can I skip my notice period if I’ve already got a new job?” or “What happens if I leave early?” Knowing your rights and obligations under the Employment Act 1955 (EA 1955) helps you avoid unnecessary tension between employees and employers.

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What Is a Notice Period?

A notice period is the time between your resignation and your last working day. It gives your company time to plan replacements and ensure a smooth handover. Accurate attendance records during this period also help HR confirm your final working days.

Female employee packing belongings at her desk after resignation

In Malaysia, the EA 1955 sets the minimum notice period Malaysia requirement, but your agreement may specify longer durations depending on company policy or position.

How Long Is the Notice Period in Malaysia?

The required timeline depends on how long you’ve worked for the same employer. Under Section 12(2) of the EA 1955, the minimum notice period Malaysia is:

Length of ServiceMinimum Notice Period
Less than 2 years4 weeks
2 to 5 years6 weeks
More than 5 years8 weeks

If your agreement specifies a different duration, follow the longer one. Always review your company policy before submitting your resignation to avoid disputes.

The law also allows flexibility. Under Section 13(1), either party may end the contract early by paying wages instead of notice. These rules protect both employees and employers, ensuring fairness and mutual respect in every employment relationship.

Can You Skip the Notice Period in Malaysia?

While tempting, skipping your resignation notice can lead to complications. The EA 1955 clearly states that anyone who doesn’t serve their full notice must pay compensation equal to the remaining salary.

For example, if your notice is one month but you leave after two weeks, you must pay your company the balance of two weeks’ wages. Some employees manage to negotiate shorter notice periods through mutual consent, but leaving abruptly without approval can breach the agreement and affect your final salary or reference.

Consequences of Skipping Your Notice Period

Female employee thinking about skipping her notice period

If you skip the notice period, your company may deduct the remaining amount from your final pay. You might also lose benefits or bonuses. In more serious cases, the company could pursue legal action for breach of contract, especially if your sudden departure causes operational disruption.

It’s always wise to discuss your options with HR before deciding to skip your notice period. Open communication helps prevent misunderstandings and protects your employment record.

When Can an Employer Terminate Without Notice?

The same rule applies in reverse. An employer can immediately terminate an employee for serious misconduct, such as fraud, dishonesty, or a violation of company policy. Likewise, an employee can resign without notice if the management fails to pay wages or breaches the contract terms.

Both parties should document the reasons clearly to remain compliant with the EA 1955.

Best Practices for Serving Your Notice Period

Here’s how employees can exit professionally:

  • Review your employment contract and confirm the exact notice length.
  • Submit your resignation in writing and keep it polite and concise.
  • Support your management with handovers to maintain goodwill.
  • Check and manage your remaining leave and attendance using your company’s HR system to ensure accurate records and a smooth exit process.

Supporting a Smooth Transition

Serving your notice isn’t just about compliance; it’s about professionalism and teamwork. Employees who complete their notice responsibly help ensure a seamless handover, easing the workload for their teams. Employers who handle resignations with fairness and respect, in turn, foster trust and preserve a positive workplace culture.

Female employee reviewing documents before her final working day

Conclusion

Every career involves change, and leaving a job gracefully can make all the difference. How you manage your notice reflects your attitude toward professionalism and integrity.

For HR teams, consistency and clear records are key to ensuring compliance under the Employment Act. With smart tools like TimeTec HR, companies can handle every transition with precision, fairness, and lasting goodwill.

Frequently Asked Questions

1. Can employees skip their notice period in Malaysia?

Not without consequences. If you skip your notice, you must pay wages equivalent to the unserved period unless your employer agrees otherwise.

2. Can a company fire an employee without notice?

Yes, but only for serious misconduct such as fraud, dishonesty, or major policy violation.

3. What happens if I don’t pay in lieu of notice?

Your management can deduct it from your final salary or take legal action for breach of the employment contract.

4. Can HR tools help manage notice period tracking?

Yes. Attendance systems like TimeTec Attendance ensure that all attendance and final working day records remain accurate for payroll and compliance.