Notice Period in Malaysia: How Long You Need Before Resigning?

In Malaysia, the standard notice period for resignation ranges from 4 to 8 weeks depending on how long you’ve worked with the company, unless your contract specifies otherwise.

Resigning sounds simple until HR reminds you that “you still owe six weeks” when your new job wants you next Monday. 

Between contracts, countdowns, and carry-over leaves, the notice period often becomes the trickiest part of quitting.

This guide breaks down exactly how long you need to serve, when you can shorten it, and how to leave professionally under Malaysia’s Employment Act 1955.

What Is a Notice Period and Why It Matters

A notice period is the time between giving your resignation and your official last day of work.

It allows both the employer and employee to plan ahead. The company can find a replacement, and you can complete your handover smoothly.

In Malaysia, the Employment Act 1955 (Act 265) sets the minimum legal notice period, which can be adjusted by contract or mutual agreement.

Why it matters:

• Protects both sides from sudden losses or disruption.
• Ensures a smooth handover and payroll calculation.
• Maintains your reputation for future references.

When done right, serving your notice isn’t a punishment,  it’s your final chance to leave on good terms, with your full salary and reputation intact.

Minimum Notice Periods Under the Employment Act 1955

If your contract does not specify a notice period, these statutory minimums apply:

Source: Employment Act 1955, Section 12(2)

Example: If you’ve worked for 3 years, your minimum notice period is six weeks unless your contract requires longer.

Note: Some sections (overtime/rest day/public holiday pay and termination benefits) do not apply to employees earning more than RM4,000/month, unless they fall into specified categories (manual labour). 

For employees outside this scope, the notice period is governed by the employment contract.

When Contractual Notice Overrides the Law

Your employment contract always comes first if it sets a longer notice period.

For instance, your company might require two or three months’ notice for management or specialist roles. This is legal as long as the period is not shorter than what’s stated in the Act.

If the contract is silent, the statutory minimum applies automatically.

If both parties agree otherwise, the notice can be waived or replaced by payment in lieu.

Payment in Lieu of Notice: How It Works

Under EA s.13(1), either party can terminate the contract without notice by paying an indemnity equal to the wages that would have accrued during the unserved notice. 

This does not require the other party’s agreement, though you should document it in writing. The formula is:

Monthly wages × (days of notice in that month ÷ days in that month)

Example: 

• • Monthly salary: RM4,000
  • Notice owed: 6 weeks = 42 days
  • Period: 15 March → 25 April (42 days)
    • March: 17 days (15–31 March), March has 31 days

• April: 25 days (1–25 April), April has 30 days

Calculation

• March portion: RM4,000 × (17/31) = RM2,193.55
• April portion: RM4,000 × (25/30) = RM3,333.33
• Total indemnity (payment in lieu): RM5,526.88

Employees or their employer can offer this payment to end the contract immediately. However, both parties must agree in writing.

Can Employers Waive the Notice Period?

If your employer agrees, they can waive the remaining notice period, meaning employees can leave earlier without penalty.

Under Section 12(2) of the Act, this is perfectly valid if both parties agree.

For example, if you give six weeks’ notice but your employer releases you after two, you don’t owe the remaining salary in lieu.

That said, we always get written confirmation of early release to avoid disputes over salary deductions.

Special Scenarios You Should Know

Not all resignations or terminations follow the same rulebook. 

Some jobs, locations, and situations come with special conditions under Malaysian labour law. Here’s what to look out for before serving (or skipping) your notice.

1. Probation Period: Shorter, But Still Binding

Most Malaysian employment contracts specify a one-week or two-week notice during probation. 

However, if the contract is silent, the statutory minimum under the Employment Act (4 – 8 weeks) still applies.

Employers often expect shorter notice from probationary staff since confirmation isn’t final, but early exits without proper notice can still lead to salary deductions.

Recommendation: Always check your appointment letter, probation clauses differ widely between SMEs and large corporations.

2. Fixed-Term Contracts: End Dates vs Early Termination

A fixed-term contract naturally ends when its term expires, no extra notice is required.

However, if either party wants to terminate before the end date, then the same rules apply, give proper notice or pay in lieu.

For example:

• A project-based designer on a 6-month contract quits after 4 months → must serve notice or compensate the employer.
• An employer ending a contract early must also pay the equivalent salary for unserved notice weeks.

Include a clear early-termination clause in your contract to avoid disputes, especially in short-term or freelance roles.

3. Misconduct or Summary Dismissal

Under Section 14(1) of the Employment Act 1955, an employer may dismiss an employee without notice for proven misconduct,  but only after a proper domestic inquiry.

Skipping due process, such as firing someone on the spot, can lead to unfair dismissal claims at the Industrial Court.

Common examples include theft, fraud, or repeated insubordination.

4. Peninsular Contract, East Malaysia Posting: Whose Law Applies?

Jurisdiction follows where you physically work.

• Work in Peninsular Malaysia or Labuan → Employment Act 1955 applies.
• Work in Sabah or Sarawak → the respective Labour Ordinance (Sabah Cap. 67 / Sarawak Cap. 76) applies.

Company registration location (KL/Kuching) doesn’t change this. If a dispute arises, the relevant Labour Department/Industrial Court where the work is performed will usually take jurisdiction.

Example: A Kuching-based technician signs a contract with a KL company. Even if the letter cites the Employment Act 1955, any complaint or notice dispute would fall under Sarawak’s Labour Ordinance and JTK Sarawak would handle the case.

Consequences of Not Serving the Full Notice

Failing to serve your full notice is a breach of contract.

Your employer may:

• Deduct the indemnity for unserved notice from your final pay (EA s.24(2)(b)).
• File a claim for the balance of indemnity/damages (EA procedures allow claims for indemnity).
• Conversely, if your employer terminates you without sufficient notice or pay, you’re entitled to wages in lieu (EA s.13(1)).

How to Resign Professionally in Malaysia

Leaving your job isn’t just about saying goodbye; it’s about protecting your rights, pay, and professional reputation. Follow these steps to resign smoothly and avoid unnecessary HR drama.

1. Check Your Employment Contract

Before sending that email, revisit your contract or employee handbook.

Confirm how much notice you’re required to give, whether you can offset it with annual leave, and if there’s a clause for payment in lieu.

2. Draft a Formal Resignation Letter

A short, polite letter is enough, but it must be in writing.

Include your intended last working day and express appreciation for the opportunity. Avoid emotional or defensive language; keep it factual and professional.

Example: “I am resigning from my position effective [date], serving the required notice period as stated in my contract.”

3. Offer to Complete a Proper Handover

Leaving on good terms means leaving things in order.

Create a checklist of tasks, contacts, and documents to hand over. Inform your teammates and clients early to ensure a smooth transition.

Why it matters: In Malaysia’s close-knit industries, your professionalism can influence future references or even rehire opportunities later on.

4. Negotiate Early Release (If Needed)

If your new employer needs you sooner, discuss a shorter notice period or payment in lieu.

Many Malaysian HR departments are open to early release, especially when you have a replacement ready or offer to offset the time with annual leave.

5. Keep Written Records of Everything

Document every key step, your resignation email, acceptance confirmation, and final settlement details.

If a dispute arises (for instance, over last salary or unserved notice), written proof protects your rights when dealing with the Labour Department (JTK).

Best practice: Follow up all verbal agreements with an email summary, it creates a timestamped record that can’t be disputed later.

Resignation Letter Example

[Your Name]

[Your Address]

[Date]

Dear [Manager’s Name],

Please accept this letter as formal notice of my resignation from [Company Name], effective [date]. My last working day will be [date], in accordance with the required notice period stated in my contract.

I appreciate the opportunities provided and will ensure a smooth handover before my departure.

Sincerely,  

[Your Signature]

Notice Period in Malaysia Protect Both Sides

Understanding your notice period in Malaysia protects both employee and employer’s rights.  Whether you’re serving, waiving, or buying out your notice, proper communication and documentation are key.

Handle your resignation professionally, it’s the final impression you leave behind.

As the top PR agency in KL, we believe informed communication builds stronger workplaces.

Our editorial team stays updated on the latest changes to Malaysia’s labour laws and HR policies, ensuring every guide we publish helps businesses and professionals communicate with accuracy, transparency, and confidence.

Because good PR begins with the right information,  and clarity is always your best message.

Disclaimer: This article is for general informational purposes and does not constitute legal advice. For specific guidance, consult the Labour Department or a qualified employment law professional.

Sources:

• Employment Act 1955 (Act 265)
• D&P Law Group
• altHR
• LPPLaw