Published On: 23/10/2025By

Probation in Malaysia: What Happens if Your Employer Doesn’t Confirm You?

Almost all employment contracts in Malaysia include a probationary period, typically lasting between 3 to 6 months. Even with the most thorough hiring process, it’s impossible to predict with complete certainty if a new hire will adapt well to the role and company culture.

In fact, studies show that roughly 1 in 5 new recruits fail to pass probation — highlighting why employers include probation clauses in employment contracts. These clauses also usually allow for shorter notice periods if either party decides to end the employment during this stage.

Whether you’re a probationary employee reaching the end of your trial period, or an HR professional trying to understand how probation works under Malaysian law — here’s everything you need to know.

What Does Malaysian Law Say About Probation?

Malaysia’s employment law is primarily governed by the Employment Act 1955, but it does not define the term “probationer.”

According to Malaysian case law, a probationer is an employee who is under evaluation to determine their long-term suitability for permanent employment.

Importantly, probationary employees have the same legal rights as confirmed employees. This means an employer cannot terminate a probationer without just cause and excuse — otherwise, the employee has the right to lodge a complaint with the Director-General for Industrial Relations for unfair dismissal.

In short, “just cause and excuse” means employers must have valid, reasonable grounds for dismissal — such as poor performance, misconduct, or attitude issues.

What Should Employers Assess During Probation?

A probation period allows employers to assess more than just technical skills. It’s an opportunity to evaluate:

  • Work performance – efficiency, accuracy, and overall output

  • Competence – ability to meet job expectations

  • Attitude and conduct – punctuality, teamwork, and discipline

  • Cultural fit – alignment with company values and team dynamics

To ensure fairness, HR should conduct regular check-ins with the probationer, discuss progress, and document all feedback or performance reviews.

Employees should also be given the chance to improve and act on feedback, supported by transparent communication from their managers.

What Happens if Employers Don’t Confirm or Terminate?

This is one of the most common HR uncertainties.

If a probation period ends but the employer neither confirms nor terminates the employee, it does not mean the employee is automatically confirmed.

Malaysian law has no provision for automatic confirmation. In this case, the employee continues employment as a probationer by conduct, until the employer formally confirms or terminates them.

However, if the company begins treating the probationer as a confirmed employee — for example, by granting benefits or appraisals normally reserved for confirmed staff — then the courts may view that the employee has been confirmed by implication.

To avoid confusion or disputes, employers should:

  • Conduct a formal probation review session before the end date

  • Clearly communicate whether the employee is confirmed, extended, or terminated

  • Issue a confirmation letter to finalize the employee’s status

Can Employers Extend a Probation Period?

Yes — but it must be done fairly and transparently.

Employers may extend probation when the employee shows potential but hasn’t fully met performance standards. However, the extension should be:

  • Communicated in writing before the probation ends

  • Supported with valid reasons (e.g. incomplete KPIs, attendance issues)

  • Clearly time-bound (e.g. extended for 2 more months)

Proper documentation ensures compliance and protects both parties if disputes arise.

Managing Probation Periods Effectively with Pandahrms

Many HR teams struggle with tracking probation timelines and following up on confirmation decisions — especially when managing multiple new hires at once.

With Pandahrms, HR departments can streamline the process effortlessly:

  • Track probation periods in real time — know exactly when each employee’s probation is due.

  • Store employee records securely — including evaluation notes and confirmation letters.

  • Access digital records anytime — for faster, more transparent decision-making.

By automating probation tracking, Pandahrms helps prevent oversight, ensure compliance, and improve employee experience during the transition from probation to confirmation.

Final Thoughts

Probation isn’t just a trial period — it’s a crucial phase where both employer and employee evaluate if the partnership is the right fit.

Employers should manage this process fairly, document everything properly, and make timely confirmation decisions. With Pandahrms, you can easily track probation progress, maintain accurate records, and keep your HR process organized — all from one central platform.