The notice period is the term you serve after resigning from a company. You cannot simply send your resignation letter a day prior and leave the company the next day. There are some protocols you must maintain. Serving a resignation notice period is just one of them.
During this period, you explain your duties to your replacement. Formally hand over your responsibilities. Additionally, complete all your pending work. The notice period is usually one month. However, in case of emergencies, it is liable for feasible alterations. Failing to serve the notice period can result in various complexities.
Read this article to learn about the regulations and rules associated with the resignation notice period. Scroll down for information.
1. What is a Notice Period?
This is the commitment of work an employee gives to their employer after resigning from the company. There are major reasons for the necessity of a resignation notice period. Check out the details given below.
1.1. Definition and purpose of a notice period
The time an employee must work in a company after submitting their notice of resignation is called the notice period.
The main objective is to ensure that the company suffers no disruption of operations. During this period, the employer completes all pending tasks. Most importantly, they formally explain and hand over the duties to the replacing candidate.
1.2. Common notice period durations in Malaysia
If you are an employee in Malaysia, there are certain rules you must follow. Your resignation notice period Malaysia will depend on your age.
- If you are not working for a higher designation or playing a special role, you are usually liable to 1 month’s notice. Except for exceptional cases, you cannot violate this commitment.
- Those working in managerial and other crucial positions in the company must serve a resignation notice period of two to three months.
1.3. Significance of notice periods for employers and employees
This one-month notice period is beneficial to both hirers and applicants. For the former, it gives time to seek a competent replacement. This will further avoid any major operational disruption.
As for employees, they get considerable time to complete all their pending tasks and hand over their rules to the replacement efficiently.
2. Legal Requirements for Notice Periods in Malaysia
The notice period is stated under the 1955 Employment Act. Here, all the details are mentioned. You will also learn how to resign 24 hours without serving the notice term.
2.1. Employment Act 1955
Your notice tenure will depend on the length and position of your job when working for the company.
Statutory minimum notice periods based on length of service
The period for less than two weeks is four weeks or one-month notice resignation. For more than two and less than five, it is 6 weeks. If you work for more than five years, the tenure will expand to 8 weeks.
Exceptions and special cases
In a few cases, employees do not have a serving notice period. They are as follows,
- Dismissal for misconduct
- Employee is deceased
- Have a mutual understanding between the employee and employer.
2.2. Employment contracts and company policies
The committed period might differ with different company policies. Hence, you must confirm the duration from your EA.
Contractual notice periods superseding statutory minimums
In recent times, many companies have been opting for contractual notice periods. However, in most cases, the tenure remains the same. However, in some, it can fluctuate according to the company’s consequences.
Industry-specific practices and norms
Some of the common guidelines on resignation notice period in Malaysia are as follows,
- Employers can terminate employees for misconduct and poor performance but with proper notice period.
- The period is four weeks for less than two years; between two to five years, it is six weeks. Lastly, for more than five weeks, it is eight weeks.
- The 24-hour resignation rule Malaysia is not a cited act in the law. However, many company policies and contracts may offer this benefit.
- In special cases like misconduct or violation of professional ethics, the employee can be terminated without any notice period.
2.3. Consequences of breaching notice period obligations
The employer can classify you as absconding. The employer can file a case against you. Additionally, they become entitled to compensation. The compensation will be the sum the employee earns during that notice tenure.
You can terminate various professional benefits if your employee refuses to serve the notice. This is legal as, according to employment law, employees are obliged to complete their notice period.
3. Circumstances Where Skipping Notice Period May Be Justified
The Employment Act states that employees need to serve a notice period before leaving the company. However, the Malaysian labour law resignation notice period is quite flexible. Hence, in certain situations, employees can skip this obligation.
3.1. Mutual agreement between employer and employee
You and your employer must arrive at a mutual agreement. Only then can you opt for a shorter notice period. It is best to clearly state your reasons and provide evidence in your application letter. This is mostly applicable to grave misconduct by the employee. For instance, they can be immediately terminated if found guilty of any criminal activities in such situations.
3.2. Constructive dismissal or breach of contract by the employer
When an employee is forced to leave a company due to unfair treatment or some violations from the employer’s end, the employee can leave the company without serving the resignation notice period.
Definition and examples of constructive dismissal
An employee leaves a company due to unfair treatment or internal forcing, known as constructive dismissal.
Some of the common examples are
- Unfair treatment
- De-promotion without proper reason
- Failed to provide a safe work environment
- Forced to comply with unreasonable changes
- False allegations reported against them
Employee’s right to resign without serving notice period
Employers can sometimes violate various terms and conditions. An employee can leave the company without completing the resignation notice period in such cases. Some examples are,
- Refused to credit the predetermined salary amount.
- Sudden pay cut without any prior notice
- Sexual harassment and bullying
- Overworking employee
- Denying pre-agreed benefits and entitlements
3.3. Personal or family emergencies
In case of major accidents or sickness, they must be put on bed rest for over a month. Another common situation is that they must commute to another location for treatment. In such cases, the benefit is granted. Mishaps like deceased family members or relatives are also applicable for this benefit. In these cases, you are not liable for any compensation.
4. Risks and Consequences of Skipping Notice Period
Consider the consequences beforehand if you plan to miss out on your resignation notice period. You might incur monetary payments in several situations as well.
4.1. Legal repercussions
The employer can drag you to the court based on your refusal. This will not only be inconvenient for your lifestyle but also for your professional life. According to the resignation notice period laws, you can choose to skip it but with monetary valuation. You need to pay compensation to the employer. The sum must equal the amount he would have received during the period.
4.2. Financial implications
A professional framework offers various advantages even during this resignation notice period. Hence, refusing to serve the duration can negatively impact these benefits. Employers can deduct a certain percentage from your salary based on the refusal, whether contract-based or regular operations. Additionally, your incentives or other payments can be affected as well.
4.3. Reputational damage
Avoid tarnishing your professional image. This will make your career growth more difficult. Since the employer who is conducting a background check might learn about your refusal to serve the resignation notice period. This will create a negative impression. All of us know how crucial networking is. Hence, agitating former colleagues or employers can disrupt your network.
5. Alternatives to Skipping Notice Period
As mentioned earlier, the Employment law on employment termination is quite flexible. It offers a few other ways to replace your resignation notice period with other services.
5.1. Negotiating a shorter notice period with the employer
The main agenda for the resignation notice period is to ensure it does not create a chaotic situation. Hence, you can help achieve a smooth change of hands. If you leave behind any pending work, you can offer to work part-time for a certain period. This will prove your responsibility and make the employers believe in your reason.
5.2. Paying salary instead of notice
You have to pay the employer your salary for this resignation notice period. This can shorten your duration yet not affect your professional reputation. If you are ready to accept a deduction in your salary or a reduced amount of incentives, etc., then you can opt for skipping this period.
5.3. Taking annual leave or unpaid leave during the notice period
If you are left with paid leave, you can use it during this time. This will help in reducing the term duration. You can also offer to continue with your service after your resignation for a certain period. Make sure you confirm the entitlements with your HR manager.
6. Best Practices for Resigning with a Notice Period
You must give your employer proper details of your resignation. If there are any specific cases, make sure you state them clearly. Additionally, make sure to provide proper evidence. For a smooth transition, it is necessary to adequately explain all necessary details to the replacement. You must properly conduct the handover process.
Do not become careless just because you are resigning. These will add up to your employee review. You must maintain efficiency till the last day of your term. If you seek a reduced resignation notice period, you must discuss it with your manager beforehand. This will be convenient for both the employee and employer.
Conclusion
In short, skipping notice periods is not possible without a proper framework. Hence, make sure you do not invite unnecessary legal inconveniences. Discuss the terms and conditions of your notice period in detail. Lastly, avoid being lackadaisical during this period.
FAQs on Resignation Notice Period
Q1. How to calculate resignation notice period Malaysia?
A1. The duration depends on the years of employment. It is four weeks for less than two years; for two to five years, it is six weeks. In the case of more than five years, it is eight weeks.
Q2. What are the 24-hour resignation rules in Malaysia?
A2. There are no specific rules cited for this in the Employment Act. However, some companies might offer this. Additionally, employers might choose this option for professional misconduct.
Q3. What is the usual notice period duration?
A3. Usually, it is a month. However, it depends on the employment period and the designation as well.
Q4. Can I shorten or skip my notice period?
A4. Yes, it is possible. You can either negotiate with your employer. Pay compensation charges to them. Furthermore, you can offer part-time working arrangements as well.
Q5. What inconveniences will I face if I skip the notice period?
A5. Employers can register a case against you. Moreover, it can tarnish your professional image. Additionally, you may also be subjected to certain financial implications.
