Disciplinary Procedure & Show Cause Letters in Malaysia

"Due inquiry" gets mentioned as a requirement for dismissal, but very few small shift-based businesses actually know what it means in practice, or have ever run one. Here's the process, in plain terms.

Why "due inquiry" exists

Dismissing an employee for misconduct without a fair process is one of the most common reasons employers lose Industrial Court cases — even when the underlying misconduct genuinely happened. The Act generally allows dismissal without notice for misconduct after due inquiry, meaning the process matters almost as much as the facts.

The basic steps

1. Issue a written show cause letter describing the specific allegation and asking for a written explanation within a set timeframe
2. Review the employee's written response before deciding next steps
3. If the matter is serious enough, convene a domestic inquiry — a hearing where the employee can respond, call witnesses, and see the evidence against them
4. A panel (not just the employee's direct manager alone, ideally) reaches a decision and documents it
5. The outcome and reasoning are recorded in writing, including if a lesser penalty than dismissal is applied

What this looks like for a small shift team

You don't need a formal HR department to run a fair process — you need a written allegation, a genuine opportunity for the employee to respond before any decision, and a written record of what was decided and why. Skipping straight from an incident to termination without any of these steps is the pattern that most often gets challenged successfully.

Suspension pending inquiry

For serious allegations, an employer can generally suspend an employee on partial pay while the inquiry is conducted, rather than either dismissing immediately or letting them keep working the roster during the investigation.

The practical takeaway

Before dismissing anyone for misconduct, ask: is there a written allegation, did the employee get a real chance to respond before the decision was made, and is the outcome documented? If any of those is missing, the process — not necessarily the facts — is the weak point.