HR22 Retrenchment Notification (Malaysia)
Section 63A Employment Act 1955 — Notification to Director General of Labour
BORANG HR22 / FORM HR22
Notis Pemberhentian Pekerja / Notice of Retrenchment of Employees
Seksyen 63A Akta Kerja 1955 / Section 63A Employment Act 1955
To: The Director General of Labour (Ketua Pengarah Buruh)
Department of Labour Malaysia (Jabatan Tenaga Kerja, JTK)
Date of Notification: [Notification Date]
BAHAGIAN A — BUTIRAN MAJIKAN / PART A — EMPLOYER DETAILS
Company Name: [Employer Name]
SSM Registration No.: [SSM Number]
Business Address: [Employer Address]
Industry / Sector: [Industry Sector]
Contact Person: [Contact Person]
Telephone: [Contact Phone]
BAHAGIAN B — BUTIRAN PEMBERHENTIAN / PART B — RETRENCHMENT DETAILS
Type of Scheme: [Scheme Type]
Total Number of Employees Affected: [Total Affected]
— Malaysian employees: [Malaysian Count]
— Foreign employees: [Foreign Count]
Intended Date of Retrenchment: [Intended Date]
Note: This notification is submitted at least 30 days before the intended retrenchment date, as required by Section 63A of the Employment Act 1955 (as amended by Act A1653, Employment (Amendment) Act 2022).
BAHAGIAN C — SEBAB PEMBERHENTIAN / PART C — REASON FOR RETRENCHMENT
Reason for Retrenchment: [Retrenchment Reason]
Alternatives Considered Prior to Retrenchment: [Alternatives Considered]
BAHAGIAN D — FAEDAH PENAMATAN / PART D — TERMINATION BENEFITS
Termination Benefit Rate: [Benefit Rate]
The employer confirms that termination benefits will be paid in accordance with the Employment (Termination and Lay-Off Benefits) Regulations 1980, at minimum rates of: 10 days' wages per year (0–2 years' service); 15 days' wages per year (2–5 years); 20 days' wages per year (over 5 years).
EIS (PERKESO) Notification Made: [EIS Notified]
PERISYTIHARAN / DECLARATION
I, the authorised representative of [Employer Name], hereby declare that the information provided in this Form HR22 is true and correct, and that this notification is submitted in compliance with Section 63A of the Employment Act 1955.
I understand that the retrenchment shall not take effect before [Intended Date], which is at least 30 days from the date of this notification, and that failure to comply with Section 63A constitutes an offence under Section 99A of the Employment Act 1955.
Authorised Representative (Employer)
________________
Signature
What Is a HR22 Retrenchment Notification (Malaysia)?
The HR22 Retrenchment Notification in Malaysia is the prescribed form under Section 63A of the Employment Act 1955 (EA 1955) by which an employer notifies the Director General of Labour (Ketua Pengarah Buruh, JKSM) of an intended retrenchment, voluntary separation scheme (VSS), mutual separation scheme (MSS), or any reduction in workforce. Introduced by the Employment (Amendment) Act 2022 (Act A1653), the HR22 obligation reflects Malaysia's commitment under International Labour Organization (ILO) Convention No. 158 (Termination of Employment Convention) to provide advance notice to labour authorities before mass redundancies occur.
The HR22 form is submitted to the nearest Department of Labour (Jabatan Tenaga Kerja, JTK) office or through the Labour Department Online System (eLSB). Section 63A of the Employment Act 1955 requires submission at least 30 days before the first retrenchment takes effect, giving JTK the opportunity to engage the employer in conciliation efforts, explore redeployment options, and register affected workers with the Social Security Organisation (PERKESO) for the Employment Insurance System (EIS) under the Employment Insurance System Act 2017.
The HR22 applies to all employers covered by the Employment Act 1955, which since the 2022 amendment covers all employees earning below RM 4,000 per month and all manual workers regardless of wage. Employers not covered by the EA 1955 — such as those employing executives on higher salaries — are nonetheless subject to common law and Industrial Relations Act 1967 obligations for fair dismissal, and many voluntarily submit HR22 to demonstrate transparency with the Ministry of Human Resources (KESUMA).
Failure to submit the HR22 notification at least 30 days before retrenchment is an offence under Section 99A of the Employment Act 1955, attracting a fine of up to RM 10,000 per breach. Employers who retrench without following the HR22 process also expose themselves to claims of unfair dismissal under Section 20 of the Industrial Relations Act 1967, adjudicated by the Industrial Court of Malaysia.
The legal framework governing the HR22 Retrenchment Notification (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a HR22 Retrenchment Notification (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Act 1955 (Act 265) sets the foundational requirements.
When Do You Need a HR22 Retrenchment Notification (Malaysia)?
An HR22 Retrenchment Notification is required in Malaysia whenever an employer intends to reduce its workforce due to business or operational reasons, at least 30 days before the retrenchment takes effect under Section 63A of the Employment Act 1955.
An HR22 is needed when an employer implements a Voluntary Separation Scheme (VSS) or Mutual Separation Scheme (MSS) as part of a workforce restructuring. Even where employees volunteer to leave, the employer must notify JTK at least 30 days before the scheme takes effect.
An HR22 is required when a company closes down, downsizes, or relocates operations, resulting in redundancy of employees. Redundancy under Malaysian law arises when the position or work done by the employee ceases or diminishes — as established in the Industrial Court case of Wong Yuen Hock v Syarikat Hong Leong Assurance Sdn Bhd [1995] 2 MLJ 753.
An HR22 notification is needed when an employer in Malaysia faces financial distress and must reduce its headcount to remain viable. The form gives JTK advance warning to deploy the Employment Insurance System (EIS) under the Employment Insurance System Act 2017, allowing retrenched employees to claim EIS benefits administered by PERKESO.
An HR22 is required when a government-linked company (GLC) or Bumiputera enterprise undergoes restructuring directed by Putrajaya or a state government, since the EA 1955 does not exempt public-sector linked employers from the notification obligation.
An HR22 is needed in any situation where an employer terminates employment for reasons other than misconduct, including technological changes reducing the need for certain roles and outsourcing of functions previously done by employees.
Parties in Malaysia should prepare a HR22 Retrenchment Notification (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your HR22 Retrenchment Notification (Malaysia)
A complete HR22 Retrenchment Notification for Malaysia must include the following elements as required by the Department of Labour (JTK) under Section 63A of the Employment Act 1955.
Employer identification: Full company name, registration number issued by the Companies Commission of Malaysia (SSM), business address, industry sector, and the name and designation of the authorised signatory. Employers registered under the Registration of Businesses Act 1956 (for sole proprietors and partnerships) must supply the Business Registration Number.
Retrenchment details: The total number of employees to be retrenched, categorised by citizenship (Malaysian / non-Malaysian), gender, and employment type (permanent, contract, part-time). The intended date of retrenchment or the date the retrenchment scheme takes effect, which must be at least 30 days after submission.
Reason for retrenchment: A factual explanation of the business or operational reason — such as closure of a business unit, loss of contract, automation, or financial losses. Industrial Court jurisprudence, including Goon Kwee Phoy v J & P Coats (M) Bhd [1981] 2 MLJ 129, requires that the reason be genuine and not a pretext for dismissal for personal reasons.
Employee particulars per individual: For each retrenched employee — full name, MyKad or passport number, SOCSO (PERKESO) membership number, EIS registration number, job designation, monthly salary in RM, date of commencement of employment, and the proposed last day of service.
Termination benefits: Confirmation that termination benefits under Section 12 of the Employment (Termination and Lay-Off Benefits) Regulations 1980 will be paid — at rates of 10 days' wages per year of service (0–2 years), 15 days' wages per year (2–5 years), and 20 days' wages per year (over 5 years), calculated on the last drawn monthly salary.
EIS notification: Confirmation that affected employees have been or will be registered under the Employment Insurance System (EIS) administered by PERKESO, to allow them to access job search allowances and retraining programmes under the EIS Act 2017.
Additional compliance elements for a HR22 Retrenchment Notification (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Forms Legal. (2026). HR22 Retrenchment Notification (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/hr-forms/hr22-retrenchment-notification-malaysia
"HR22 Retrenchment Notification (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/hr-forms/hr22-retrenchment-notification-malaysia.
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title = {HR22 Retrenchment Notification (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/hr-forms/hr22-retrenchment-notification-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}Frequently Asked Questions
Under Section 63A of the Employment Act 1955 (as amended by the Employment (Amendment) Act 2022), an employer must submit the HR22 Retrenchment Notification to the Department of Labour (JTK) at least 30 days before the first retrenchment takes effect. Separately, the employer must also provide individual employees with contractual or statutory notice under Section 12 of the Employment Act 1955, which ranges from 4 weeks' notice (employment under 2 years) to 8 weeks' notice (5 or more years' service), unless a longer period is specified in the employment contract. Payment in lieu of notice is permissible under Section 12(3). Failure to give the 30-day advance notice to JTK is an offence under Section 99A, punishable by a fine up to RM 10,000. Under Malaysia law, Employment Act 1955 (Act 265), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Employees covered by the Employment Act 1955 who are retrenched are entitled to termination benefits under the Employment (Termination and Lay-Off Benefits) Regulations 1980. The rates are: 10 days' wages per year of completed service for employees with fewer than 2 years' service; 15 days' wages per year for 2 to 5 years' service; and 20 days' wages per year for over 5 years' service. A year of service less than 12 months is proportioned. Wages for this calculation means the last drawn monthly salary excluding allowances and overtime. Retrenchment benefits are exempt from income tax under Schedule 6 of the Income Tax Act 1967 up to RM 10,000 per year of service. Employees not covered by the EA 1955 — such as executives earning above RM 4,000 — are entitled to contractual or common law damages for wrongful termination.
Yes, retrenched employees may file a representation for reinstatement under Section 20 of the Industrial Relations Act 1967 with the Department of Industrial Relations (DGIR), on the ground that the retrenchment was without just cause or excuse. The representation must be filed within 60 days of dismissal. The Minister of Human Resources may then refer the matter to the Industrial Court of Malaysia for adjudication. Malaysian Industrial Court awards, such as the precedent in Goon Kwee Phoy v J & P Coats (M) Bhd [1981] 2 MLJ 129, require employers to show genuine commercial reasons for redundancy and proof that the retrenched employee's position truly became redundant. Retrenchment for personal reasons, discrimination, or union-busting violates Section 5 of the Industrial Relations Act 1967 and may result in reinstatement or compensation.
The HR22 Retrenchment Notification covers all employees, including foreign workers holding valid Work Permits issued by the Immigration Department of Malaysia (JIM). Section 63A of the Employment Act 1955 does not distinguish between Malaysian citizens and non-citizens. However, the retrenchment of foreign workers triggers additional obligations: the employer must notify JIM of the worker's early contract termination, arrange for the foreign worker's Work Permit to be cancelled, and bear the cost of repatriation to the country of origin if required under the terms of the Work Permit and KESUMA guidelines. PERKESO EIS benefits are generally not available to foreign workers, as EIS contributions under the Employment Insurance System Act 2017 apply only to Malaysian citizens and permanent residents.
Retrenchment and termination for misconduct are two distinct categories of employment cessation under Malaysian law, each with different procedures and entitlements. Retrenchment is a no-fault termination arising from business or operational reasons — the employer is not alleging wrongdoing by the employee. Retrenched employees are entitled to termination benefits under the Employment (Termination and Lay-Off Benefits) Regulations 1980, and the employer must submit an HR22 to JTK at least 30 days in advance. Termination for misconduct, by contrast, requires the employer to conduct a domestic inquiry under Section 14 of the Employment Act 1955, giving the employee an opportunity to respond to allegations. An employee fairly dismissed for misconduct following domestic inquiry is not entitled to retrenchment benefits. Using retrenchment to disguise a misconduct dismissal is treated as unfair dismissal by the Industrial Court of Malaysia.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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