10 More Things Your Boss Says That Are Actually Illegal In M’sia | WeirdKaya

Part 1 of this series covered the most commonly cited violations: blocked MC during peak season, unpaid overtime, salary deductions for mistakes, and firing someone for being pregnant.

A lot of Malaysians recognised those situations from their own workplaces, which is both gratifying and depressing.

Part 2 goes deeper.

These are the violations that do not get talked about as often, partly because they are less dramatic and partly because they rely on employees not knowing that the law says something specific. Withholding payslips.

Extending probation without limit. Forcing early retirement. Unilateral pay cuts. None of these make the news, but all of them affect real Malaysian employees every day.

As before: this is educational content, not legal advice. For your specific situation, consult a licensed employment lawyer or file directly with JTK. The law is your protection regardless of your salary level, and since January 2023, the Employment Act covers every employee in Peninsular Malaysia regardless of how much they earn.

The 10 things, in detail

#1 “Your probation period has been extended. Again.”

The law says probation periods are not regulated by statute in Malaysia, meaning employers do have discretion to set the length. However, that discretion has limits. The probation period and any extension terms must be clearly stated in your employment contract. An employer cannot indefinitely extend probation without limit or contractual basis. If the terms of your probation are not in writing, or if extensions keep happening beyond what was agreed, this can constitute constructive dismissal under the Industrial Relations Act 1967.

Critically: a probationer has the same legal rights as a confirmed employee. They are entitled to minimum wage, public holidays, overtime rates, annual leave, and sick leave. And they cannot be dismissed without just cause and excuse — they can file an unfair dismissal claim if they believe their non-confirmation was unreasonable.

#4 “Your resignation is not accepted.”

A resignation cannot be rejected. Under Malaysian employment law, once an employee submits a valid resignation with the correct notice period — or with an offer to pay salary in lieu of notice — the employment contract is terminated at the end of that period regardless of whether the employer agrees with the decision. An employer has no legal power to refuse a resignation, demand the employee “un-resign,” or threaten consequences for leaving. The employment relationship is not a one-way door. Just as an employer can terminate with notice, an employee can resign with notice. Neither party can force the other to continue a contract against their will.

What the employer can legitimately do: hold you to serving your contractual notice period, or require you to pay salary in lieu if you want to leave early. What they cannot do: refuse your resignation outright, threaten disciplinary action for resigning, or claim you are bound to stay indefinitely. If an employer retaliates against you for resigning — demotes you, freezes your access, or withholds salary — document everything and contact JTK or the Industrial Relations Department immediately.

#9 “We will blacklist you in the industry if you go to JTK.”

Whistleblower Protection Act 2010

This is one of the most effective intimidation tactics used in Malaysian workplaces precisely because it is so hard to disprove — and because most employees genuinely fear it. The threat of being “blacklisted” is designed to make you abandon your legal right to file a complaint with the Labour Department or other enforcement agencies. Here is the legal reality: threatening an employee for exercising their right to report a labour law violation is itself an offence. The Whistleblower Protection Act 2010 protects employees who report offences to prescribed enforcement agencies (including JTK, PERKESO, and the Industrial Relations Department) in good faith. An employer who retaliates — whether by withholding references, spreading negative information to other employers, or threatening professional consequences — opens themselves to a separate legal claim on top of the original violation.

There is no central “blacklist” database that employers can officially register your name with. What employers can do is give unfavourable references or speak to contacts in the same industry — both of which, if done to punish you for filing a legal complaint, can constitute victimisation. Document any such threat in writing the moment it is made. A WhatsApp message saying “if you go to JTK you will never work in this industry again” is evidence. Keep it. Important: the Whistleblower Act protects reporting to enforcement agencies only — not public social media posts, which carry separate legal considerations.

New rights in 2025 that most employees do not know about

Beyond the 10 above, three significant changes in 2025 have expanded employee protections in Malaysia, and many employers are still catching up with compliance.

Understanding Constructive Dismissal

Several of the items above, like unilateral pay cuts, indefinite probation extension, demotions without cause, can constitute constructive dismissal under Malaysian employment law.

This is a concept that many employees do not know exists, and that many employers deploy inadvertently.

Constructive dismissal occurs when an employer’s conduct fundamentally breaches the employment contract, making it reasonable for the employee to resign and treat themselves as having been dismissed.

It is, in the words of the Malaysian Industrial Court, a breach so serious that it goes to the root of the contract. The employee who leaves as a result is treated in law as having been unfairly dismissed, and can file a representation under Section 20 of the Industrial Relations Act 1967.

The key is that the employee must act promptly after the employer’s breach.

Continuing to work for an extended period after the breach may be construed as acceptance of the new terms. If you believe you are being constructively dismissed, seek legal advice quickly and document everything in writing.

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