Failure To Hold A Domestic Inquiry

Under Malaysian law, the failure to hold a domestic inquiry in the case of misconduct is not fatal to the employer’s case at the Industrial Court.

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Domestic Inquiry Does Not Have To Be Formal

Although Employment Act does not define what is “due inquiry”, and it does not necessarily mean that an employer must conduct a formal domestic inquiry, it is important is that the employer investigate the matter fairly.

In some cases, even having a discussion with the employee in question can be considered as “due inquiry”.

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A Show Cause Letter Should Contain List Of Employees Misconduct

Employers must list out employees misconduct in the show cause letter. Whenever possible, the relevant clause of the company's policy and/or employment contract that such employees breached should be cited.

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A Show Cause Letter Should Be Given To The Employee Before Carrying Out Domestic Inquiry

Employer should give show cause letter to the employee before carrying out domestic inquiry. This letter is to call for an explanation for the alleged misconduct and to allow the employee to defend or explain the situation, as well as to state why the employee believes disciplinary should not be taken.

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No One Should Be Condemned Unheard In Carrying Out Domestic Inquiry

Following the Rule of Natural Justice, which is no one should be condemned unheard, in carrying out Domestic Inquiry, the charged employee must have reasonable notice of the case they have to meet.

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Domestic Inquiry Is Similar To A Court Proceeding

The domestic inquiry may share some similarities with a court proceeding. This is because domestic inquiry usually have its own prosecuting officer and a panel which will discuss and make findings. 

Parties are also usually allowed to call witnesses to testify. If the employee is found guilty, the management will then determine what kind of punishment to be sentenced out.

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Domestic Inquiry Is A Statutory Obligation

Under Employment Act 1955, it is a statutory obligation by the employer to conduct a domestic inquiry to determine whether an employee is guilty of misconduct or not before an employee can be dismissed or before any other major penalty is imposed.

This is to ensure that no employee should be dismissed for misconduct unless the employee has been given an opportunity to defend himself/herself or has been given an opportunity to be heard.

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