What You Need to Know About Domestic Inquiry in Malaysia

The Domestic Inquiry (DI) is an internal investigation process conducted by an employer on the conduct of an employee at work. A domestic inquiry is usually triggered by a wrongdoing allegation or suspicion on the part of the employee. By following the domestic inquiry route, this gives a chance for the alleged employee to challenge the charges made to them and defend themselves.

Since the burden of proving the dismissal is fair on the employee, it is important for employers to get their facts straight and not make a decision based on hearsay evidence or on mere suspicion. If they come to hasty decision, the employer would regret their actions if their decision comes under the scrutiny of the Industrial Court.

It is important for employers to get their facts straight in a domestic inquiry

A domestic inquiry was born out of two circumstances. The first is the requirement of the Employment Act, 1955 and the second is the Rule of Natural Justice.

According to the Employment Act 1955, an employer is required to carry out a due inquiry in the event of a misconduct committed by an employee before the employer can carry out a punishment. This is a statutory obligation imposed on the employer.

Following the  Rule of Natural Justice in Malaysia, no one shall be condemned unheard, the context of DI is applied as follows:

• The charged employee must have reasonable notice of the case they have to meet.

• The employee must have reasonable opportunity of being heard in their own defense; where the judge should listen to both sides and this includes the opportunity to face and challenge their accusers, witnesses and whatever evidences there are against them.

• The hearing must be by an impartial tribunal i.e. a person who is neither directly or indirectly the party to the case.

A domestic inquiry is needed before before the employer can carry out a punishment.

Domestic Inquiry Procedures

To properly hold a domestic inquiry, a certain guideline needs to be followed. Here are the procedures:

1. A letter that includes the specific charge of the offence, date, time, place and also which rules or regulations have been violated, is served to the employee alleged of misconduct.

2. Create a panel made up of neutral parties:

   • Chairman (not involved in the investigation),

   • Two independent panel members (may be employees from another department)

   • A prosecutor (may be a personnel officer in the HR department)

3. The prosecution will begin first in the hearing. They are to make out a case against the accused first by producing witnesses who have direct knowledge of case.

4. The accused (the employee alleged to have committed the offence), is then allowed to question (cross examine) each of the witnesses on the evidences they have given.

5. Then, the accused will be asked to enter their defence i.e. to tell their side of the story. The accused may produce witness or witnesses to support what they have said. The accused as well as their witnesses are subject to cross-examination by the prosecutor. The chairman will guide the proceeding and to record the evidences in writing.

6. After the hearing, discussion will be held and study the evidences given by both parties. Finally the chairman will submit the panel's finding and recommendations to the Management for their decision.

7. Management's decision generally falls into three categories:

   • To dismiss the employee without notice; or

   • Downgrade the employee; or

   • Impose any other lesser punishment as deemed just and fit, and where a punishment of suspension without wages is imposed, it shall not exceed a period of two weeks.

More Articles about employment laws and HR policies in Malaysia:

Read: All You Need to Know About Probationary Periods
Read: What You Need to Know About Employee Bonuses
Read: HR's Guide to Show Cause Letters

Want more content like this? Visit our HR Library exclusive for Ajobthing users only.

Source: National Human Resource Center