Can You Skip Your Notice Period When Resigning in Malaysia?
At some point in your career, you may need to resign from your job—whether it’s for better opportunities, personal reasons, or career changes. While quitting a job might sound simple, there are important procedures to follow, especially when it comes to your notice period.
One of the most common questions employees ask is: Can I legally skip my notice period in Malaysia?
Here’s what you need to know.
What Is a Notice Period in Malaysia?
A notice period is the time frame an employee or employer must give before terminating an employment contract. This is usually stated in the employment contract. However, if the contract doesn’t specify the notice duration, the Employment Act 1955 provides the following minimum notice periods:
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4 weeks if employed for less than 2 years
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6 weeks if employed for 2 years or more but less than 5 years
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8 weeks if employed for 5 years or more
These rules apply under the Employment Act 1955, which covers employees in Peninsular Malaysia who fall under specific categories (e.g., earning RM2,000 or less, manual laborers, domestic workers, etc.).
Can You Leave a Job Without Serving the Full Notice Period?
Yes—but under certain conditions.
1. Mutual Agreement with Employer
The easiest and most professional way to shorten your notice period is through mutual agreement. Talk to your employer or HR department and try to negotiate a shorter exit timeline. If both parties agree, you may be able to leave earlier than originally planned.
2. Using Annual Leave to Offset the Notice Period
If you have unused annual leave, you may apply to use them to reduce your notice period. However, your employer has the right to reject this request and instead pay you for the leave days (or require you to serve the full notice period).
3. Paying Indemnity in Lieu of Notice
Under Section 13(1) of the Employment Act, either party may terminate the employment contract without notice by paying an indemnity in lieu of notice. This means paying the equivalent amount of wages you would have earned during the notice period you’re skipping.
Example: If your notice period is one month and you earn RM3,000 per month, you would need to pay RM3,000 to legally leave without serving the notice.
Sometimes, your new employer may be willing to bear this cost if they need you to start work urgently.
What If You Leave Without Any Notice or Payment?
If you leave your job without giving notice and without paying the indemnity, your employer has the right to:
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Deduct the owed amount from your final salary or other due payments
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Take legal action for breach of contract
Leaving without proper notice is considered non-compliance with the employment contract, unless it’s justified under certain conditions (e.g., unpaid salary, breach of contract by employer, etc.).
Situations Where Employees Commonly Skip the Notice Period
Employees may choose to leave immediately due to:
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Better-paying job offers
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Relocation to another city or country
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Hostile or toxic work environment
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Family or health issues
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Pursuing further studies
While these reasons are understandable, you are still legally bound to either serve the notice or pay indemnity, unless the employer waives it.
If you decide to skip your notice period for any of these reasons (or others), you can do so under Section 13(1) of the Employment Act.
“Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given under Section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the amount of wages which would have accrued to the employee during the term of such notice or during the unexpired term of such notice.”
Can an Employer Terminate an Employee Without Notice?
Yes—an employer may also terminate the employee without notice under the following conditions:
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By paying indemnity in lieu of notice
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Due to serious misconduct, such as willful breach of contract terms
Examples of misconduct include:
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Employee absent for more than two consecutive days without permission
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Failure to perform duties as agreed
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Breach of workplace policies
Do You Need to Submit a Resignation Letter?
Absolutely. Employees must provide a formal resignation letter when they decide to leave. According to Section 12(1) of the Employment Act:
“Either party to a contract of service may at any time give the other party notice of his intention to terminate such contract of service.”
It’s best to hand in your resignation in person and follow up with an email or written confirmation to maintain professionalism and protect yourself legally.
Final Thoughts
While it is possible to leave your job before completing your notice period, it must be done legally and ethically. Always check your employment contract and understand your rights under the Employment Act. Whether it’s negotiating with your employer, using annual leave, or paying indemnity, make sure you handle your resignation properly to avoid future complications.
Thinking of managing employee resignations more effectively?
With Pandahrms, you can streamline your HR operations—from automating notice period tracking and resignation records, to ensuring proper handover processes and documentation. Our all-in-one HR system helps HR teams and managers stay compliant with local labour laws, reduce paperwork, and simplify communication during offboarding.
