Can an employer Reject your Resignation Letter?

Written by: Izz Murtada

Many workers in Malaysia grow up believing that a boss can simply refuse to let them go. Someone hands in their resignation letter, and their manager says, “I don’t accept this” or “you cannot leave yet”. It sounds official, and it can be scary to hear, especially if you already have a new job waiting. 

The good news that the law is on your side here, and it is not complicated once you see it written down. This article walks through what the Employment Act 1955 says about resignation, notice periods, and what happens on your last day at work.

1. Resignation is a notice, not a request

Under Section 12(1) of the Act, either you or your employer can give notice to end the employment contract. That word matters a lot. A resignation letter is a notice that you are ending the contract. It is not a request that someone else gets to approve or turn down.

Think of it the same way you would think of telling your landlord you are moving out. You are informing them, not asking for their permission.

2. How long is your notice period? 

Your employment contract usually states a notice period, and both sides need to honour whatever is written there. If your contract is silent on this, the law fills the gap for you under section 12(2): 

• Less than 2 years of service: 4 weeks notice
• 2 to 5 years of service: 6 weeks notice
• 5 years of service or more: 8 weeks notice

This applies equally to employers, so the same rule protects you if your company wants to let you go too. Your notice should be in writing, and the day you hand it counts as day one of the notice period.

3. So can your employer say no?

Not really, at least not in the way most people fear. Your employer cannot legally cancel your resignation or force you to keep working forever. What they can do is expect you to serve out your notice period, because that is part of the deal on both sides.

If you want to leave earlier than your notice period allows, Section 13(1) gives you an option. Either you or your employer can end the contract right away by paying an indemnity, which is simply an amount equal to the wages you would have earned during the rest of the notice period. So a company that says “we reject your resignation” usually just means they expect proper notice or payment in place of it, not that they can keep you against your will.

4. Can you take back a resignation once it is sent? 

This is one area where the Act does not give a clear answer, so it comes down to good faith between you and your employer. Once you have handed in your notice, it has already taken legal effect. Withdrawing it is not an automatic process, and your employer has to agree to it.

If you change your mind, speak to your employer as soon as possible, and put your request to withdraw in writing. Many employers are reasonable about this, especially if a replacement has not been hired yet, but it is their choice whether to accept it or not.

5. Working out your last working day

Your last working day is simply the date you handed in your resignation, plus the length of your notice period. For example, if you serve a four week notice and you submit your letter on a Monday, your last day falls four weeks later, since the date of submission is already counted as part of the notice.

If you and your employer agree on an earlier exit with an indemnity payment instead of working through the notice, your last day will be whatever date you both agree on.

Getting resignations right protects everyone

Notice periods, indemnity payments, and final pay can get confusing fast, whether you are the one resigning or the HR team handling it. A clear well written employment contract and a proper offboarding process save both sides a lot of stress later on.

At Kita Strategies, we help Malaysian businesses put these foundations in place, from employment contracts and HR policies to payroll stays accurate right down to an employee’s final paycheck. If your company needs a hand tidying up how resignations and notice periods are handled, our team is happy to talk through with you.

Reference: Employment Act 1955 (Act 265), Sections 12 and 13