Our Managing Partner, Lau Kee Sern was invited as a panellist for the session on “Employee Termination Benefits: Clearer Path Ahead?”

Insolvency proceedings increasingly raise complex issues around the treatment of employees, particularly in relation to retrenchment, termination benefits, and employment continuity. Recent Malaysian court decisions have provided greater clarity on employers’ obligations, but significant grey areas remain—especially under the Employment Act 1955 and the Industrial Relations Act 1967. This discussion examines key legal standards, employee claim prioritisation in liquidation, evolving case law, and practical best practices for employers and insolvency practitioners navigating workforce reductions in financially distressed companies.