Factors Influencing Termination of Employment in Malaysian Private Sector: An Analysis from Industry

Abstract

Purpose of the study: This paper aims to analyse the factors of employment termination in Malaysian Private Sector from the industry.

Methodology: This study used a qualitative method by conducting an interview session with the Industrial Relation Officer of the Ministry of Human Resources Malaysia (MOHR). Interview sessions were held face-to-face with semi-structured techniques to enable in-depth study and comprehensive information. Five respondents were selected from experienced officers in dealing with termination cases based on service contracts. Interview sessions lasted approximately 60 minutes per respondent. The transcription process has been made before analysis. The thematic analysis methods were used whereby each data is coded based on the related theme.

Main Findings: The results found each of the actors plays an independent role in the industrial relations system. Regardless of the reasons and factors leading to the termination of employment, it affects all actions. This paper found three factors that lead to termination of employment which includes employee misconduct, employer's legal knowledge, and weaknesses of the law enforcement.

Applications of this study: This study contributes to the existing policy in the implementation of labour law in Malaysia, especially to the Ministry of Human Resources Malaysia. Based on the study conducted, some recommendations to the three actors in the industrial relations system to curb termination based on employment contracts in the private sector in Malaysia.

Novelty/Originality of this study: This study focuses only on termination of employment based on the contract of services regardless of other types of termination. The results of the study will use as a guideline for employers and private-sector employees in managing human resource management.