Can an Employee Resign Immediately? Understanding Notice Periods in Malaysia

Written by: Izz Murtada

Sometimes an employee needs to leave a job fast, whether it’s a new offer starting next week or something that can’t wait. So can they just walk out, or are they bound to serve notice no matter what? The Employment Act 1955 (Act 265) actually mentions this clearly.

How Long Is The Notice Period?

Under Section 12, the notice period in whatever’s written in the employment contract. However, if the contract doesn’t say, the Act sets these minimum based on length of service:

• 4 weeks (if employed less than 2 years)
• 6 weeks (if employed within 2 to 5 years)
• 8 weeks (if employed 5 years or more)

The same duration applies to both employer and end employee, so neither side can demand more notice than they’re willing to give. Both parties can also agree to waive the notice requirement altogether if they choose to.

Does a Resignation Need to Be in Writing?

Yes. Section 12(4) requires that notice of termination, including a resignation, be in writing. It can be submitted at any time, and the day it’s handed in counts as day one of the notice period.

A verbal resignation, even a firm one, doesn’t legally count. Most companies already handle this through a resignation letter or HR form, so it’s rarely an issue in practice, but it’s worth knowing the law backs it up.

Can An Employee Resign Immediately?

Yes, but usually not for free. Section 13(1) allows either party to end the contract without serving notice, as long as they pay the other party an indemnity equal to the wages owed for that notice period. So if an employee owes six weeks’ notice but needs to leave now, they can pay six weeks’ wages instead of working it out.

Employers can choose to waive this payment, especially for amicable exits, but they’re not obligated to. Separately, Section 13(2) allows termination without notice or indemnity if the other party has committed a wilful breach of the contract, though this applies to more serious situations than a standard resignation.

Key Takeways

• Notice periods follow the contract first, and the Act’s minimums only if the contract is silent.
• Written notice is a legal requirement, not just good practice.
• Immediate resignation is possible through an indemnity payment, or by mutual agreement to waive notice.

Checking the actual contract alongside these provisions, or getting proper HR advice, is always the safest move before deciding how to handle a resignation. Getting notice periods, resignation letters, and offboarding right isn’t always straightforward, especially when every case seems to have its own twist. This is where having the right HR and payroll partner makes a real difference. At Kita Strategies, we help businesses in Malaysia navigate exactly these kinds of employment matters, from drafting compliant contracts to managing the full employee lifecycle, so HR teams can spend less time worrying about compliance and more time focusing on their people