Last verified: August 2026 · Employment Act 1955 termination rules

Malaysia resignation notice guide 2026

Learn how resignation notice works in Malaysia, including notice period, probation resignation, 24-hour notice, salary in lieu, final salary and annual leave treatment.

Key Takeaways

Resignation is generally effected by giving written notice under the employment contract or the Employment Act 1955 where no written notice term exists.
If there is no written notice provision, the statutory fallback periods are commonly 4, 6 or 8 weeks depending on length of service.
Either party may end employment before the notice period is completed by paying salary in lieu / indemnity for the unserved notice period.
Where the employment contract already contains a written notice clause, that clause normally determines the notice period; normal termination wages are generally due by the termination date.

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What Is Resignation Notice?

Resignation notice is the period between the employee giving notice of termination and the employment contract ending. It gives both sides time to manage handover, payroll and replacement arrangements.

Section 12 states that either party may give notice to terminate the contract, and the notice must be in writing. The day on which the notice is given is included in the notice period.

How Long Is the Resignation Notice Period?

If the contract contains a written notice clause, that clause generally determines the length of notice, and the notice period should be the same for employer and employee.

SituationNotice PeriodGeneral Rule
Written notice clause in employment contractFollow the written contractual periodSection 12(2) gives priority to the written notice provision.
No written notice term — less than 2 years' serviceAt least 4 weeksStatutory fallback period.
No written notice term — 2 years to less than 5 yearsAt least 6 weeksStatutory fallback period.
No written notice term — 5 years or moreAt least 8 weeksStatutory fallback period.
Common misconception: One month is not an automatic universal resignation notice period. It may be one month because the contract says so, but the statutory fallback periods are 4, 6 or 8 weeks depending on service length.

When Does the Notice Period Start?

Section 12(4) states that notice may be given at any time and that the day on which notice is given is included in the notice period.

Because employment contracts may express notice as days, weeks or months, employees should state the intended last day clearly in the resignation letter and ask HR to confirm it in writing.

Resignation During Probation

An employee can resign during probation. The first document to check is the probation notice clause in the offer letter or employment contract.

If the contract contains a shorter notice period during probation, that written term usually applies. If there is no written notice provision at all, section 12's statutory fallback notice periods become relevant rather than simply assuming “one week” because the employee is on probation.

Probation does not remove notice obligations: The employee should still resign in writing, identify the notice period and confirm the final working day.

What Is 24-Hour Resignation?

“24-hour resignation” is not a special automatic right under the Employment Act. In practice, it means the employee wants to terminate employment almost immediately rather than serving the full notice period.

This can happen where the employer waives the notice requirement, where both parties agree to an early release, or where the employee terminates under section 13(1) by paying indemnity equal to the wages that would have accrued during the unserved notice period.

Do not simply disappear from work: Continuous absence for more than two consecutive working days without prior leave, reasonable excuse and timely notice can cause the employee to be deemed to have broken the contract under section 15(2).

Salary in Lieu of Notice / Notice Indemnity

Section 13(1) allows either party to terminate employment without serving the full notice by paying the other party an indemnity equal to the wages that would have accrued during the whole notice period or the unexpired portion of that notice.

Notice Indemnity = Wages That Would Have Accrued During the Unserved Notice Period The Employment Act does not state a universal “monthly salary ÷ 26 × notice days” formula for every resignation case.

Simple Example: One Full Month Unserved

If an employee's written contract requires one month's notice and the employee leaves immediately without serving any of it, the section 13(1) indemnity is generally linked to the wages that would have accrued during that one-month notice period.

If only part of the notice remains unserved, the calculation should reflect the wages that would have accrued during that remaining period. JTKSM also provides official estimate calculators for monthly-rated notice indemnity.

Why the old ÷26 formula was removed: Section 13 focuses on wages that would have accrued during the unserved notice term. Using a fixed daily divisor for every case can produce the wrong amount depending on how the notice period is expressed and the dates involved.

Annual Leave During the Notice Period

Annual leave and resignation notice are separate legal concepts. Taking annual leave during the notice period does not automatically shorten the contractual notice period or change the termination date.

However, section 60E gives an employee who is leaving the right to take annual leave that is due from the prior service period plus pro-rated accrued leave for completed months in the current service period before termination.

SituationGeneral Treatment
Employee wants to take annual leave during noticeLeave scheduling should be properly arranged with the employer.
Outstanding statutory leave remains at terminationEmployer generally must pay the ordinary rate of pay for each outstanding leave day, subject to section 60E.
Employee assumes annual leave automatically “offsets notice”Not automatically. The notice obligation and annual-leave entitlement should be dealt with separately.

Final Salary After Resignation

Final salary can include wages earned up to the termination date, approved overtime or other remuneration, outstanding annual-leave payment where applicable, and lawful deductions such as notice indemnity or advance recovery.

Termination SituationStatutory Wage Payment Timing
Normal resignation / termination under section 12Wages earned but not yet paid, less lawful deductions, must generally be paid not later than the termination date.
Employee terminates without notice under section 13(1), 13(2) or 14(3)Wages earned up to the relevant date, less lawful deductions, must generally be paid not later than the third day after termination.
Important: “Final salary depends on the normal payroll cycle” is too broad. The Employment Act contains specific final-wage timing rules for termination cases.

What May Appear in Final Salary?

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Outstanding Wages

Salary earned up to the effective termination date.

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Unused Annual Leave

Outstanding statutory leave may have to be paid when employment ends.

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OT / Commission

Approved amounts due may still form part of final payroll.

Lawful Deductions

Notice indemnity, advance recovery or other lawful deductions may reduce final pay.

Can an Employer Reject Resignation?

Section 12 gives either party the right to give notice of termination. Resignation is therefore not generally something that only becomes valid because the employer “approves” it.

The employer can still insist on the applicable notice obligation, unless notice is waived or the employment is terminated earlier under section 13.

Practical step: Submit resignation in writing and keep evidence of delivery. The key dispute is usually the notice period, final date or financial consequence — not whether the employer likes the resignation.

Can You Withdraw a Resignation?

Withdrawal is different from giving the original resignation notice. Once notice has been given, an employee should not assume it can be cancelled unilaterally.

If you want to withdraw your resignation, request the withdrawal in writing and obtain clear employer agreement before assuming employment will continue beyond the original termination date.

Handover and Company Property

A proper handover reduces disputes and protects both employee and employer. Employees should return company property and document the handover, but the employer's right to deduct wages for missing items is still subject to lawful deduction rules.

  • Prepare a written handover list for ongoing work and deadlines.
  • Return laptop, phone, access card, keys, tools and other company property.
  • Keep acknowledgement of returned items where possible.
  • Do not assume the employer can make any deduction it wants for property issues without a lawful basis.

Common Resignation Examples

Example 1: Contract Says One Month Notice

An employee submits written resignation under a contract requiring one month's notice. The contractual one-month term normally governs, and the notice date itself is included when counting the notice period.

Example 2: No Written Notice Clause, 3 Years of Service

If there is no written notice provision and the employee has worked for 3 years, the statutory fallback notice is at least 6 weeks.

Example 3: Employee Wants to Leave Immediately

The employer may waive notice, both sides may agree on an early release, or the employee may terminate without waiting for expiry by paying section 13(1) indemnity for the unserved notice period.

Example 4: Unused Annual Leave at Exit

If statutory annual leave remains outstanding when employment ends, the employee may be entitled to payment at the ordinary rate of pay for those days, subject to section 60E.

Common Resignation Mistakes

  • Assuming every employee automatically has a one-month notice period.
  • Not checking whether the contract contains a written notice clause.
  • Forgetting that the notice itself should be in writing.
  • Counting the notice period from the day after resignation instead of checking section 12(4).
  • Assuming “24-hour resignation” is an automatic legal entitlement.
  • Using a fixed salary ÷ 26 formula for every notice-indemnity calculation.
  • Assuming annual leave automatically shortens the notice period.
  • Assuming final salary can always wait until the next normal payroll date.
  • Leaving without documenting handover or return of company property.
  • Failing to keep the resignation letter, HR confirmation and final payslip.

Resignation Checklist

  • Read the termination / notice clause in your employment contract.
  • If there is no written notice term, check the statutory 4 / 6 / 8-week fallback period.
  • Submit resignation in writing and keep proof of delivery.
  • Confirm the notice start date and final working / termination date.
  • Decide whether the full notice will be served, waived or bought out.
  • Check annual leave due and accrued leave for completed months.
  • Prepare and document handover and company-property return.
  • Review final salary, lawful deductions and annual-leave payment.
  • Keep the final payslip, resignation correspondence and HR confirmation.

Sources & Verification

This guide was last verified in August 2026 against the Employment Act 1955 and current JTKSM notice-indemnity guidance.

Frequently Asked Questions

How much notice must I give when resigning in Malaysia?

If the employment contract contains a written notice clause, that written period generally applies. If there is no written notice term, section 12 provides minimum notice of 4 weeks for less than 2 years' service, 6 weeks for 2 to less than 5 years, and 8 weeks for 5 years or more.

Must resignation notice be in writing?

Yes. Section 12(4) states that notice of termination shall be written.

Does the resignation date count as part of the notice period?

Yes. Section 12(4) states that the day on which notice is given is included in the notice period.

Can I resign during probation?

Yes. Check the written probation notice clause. If no written notice provision exists, the statutory fallback rules may apply rather than an assumed shorter probation period.

Can I resign with 24-hour notice?

There is no general automatic 24-hour resignation right. Immediate departure may be possible if notice is waived, an early release is agreed, or section 13(1) indemnity is paid for the unserved notice period.

How is salary in lieu of notice calculated?

Section 13(1) bases the indemnity on the wages that would have accrued during the full or unexpired notice period. The exact amount depends on the notice term, wages and dates involved.

Can annual leave be used during notice?

Employees may have statutory annual leave due or accrued before termination, but annual leave does not automatically cancel or shorten the notice obligation. Leave scheduling and the termination date should be confirmed properly.

What happens to unused annual leave when I resign?

Outstanding statutory annual leave generally has to be paid at the ordinary rate if the contract ends before the employee takes it, subject to the exception for certain misconduct dismissals.

When should final salary be paid after a normal resignation?

For a normal termination under section 12, wages earned but unpaid, less lawful deductions, are generally due not later than the termination date.

Can an employer reject my resignation?

Resignation is a notice to terminate employment under section 12 and is not generally dependent on employer approval. The employer may still enforce the applicable notice or indemnity obligation.

Can I withdraw my resignation after submitting it?

Do not assume withdrawal is automatic. Ask the employer in writing and obtain agreement if you want employment to continue beyond the original termination date.