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How to Evaluate an Employee’s Reply After a Show Cause Letter

How to Evaluate an Employee’s Reply After a Show Cause Letter

Table of Contents

If You’re an Employer Facing a Possible Breach of Contract

Suppose you’re an employer dealing with an employee who may have breached the terms of their employment contract. In that case, whether it’s repeated lateness, refusal to carry out duties, or unauthorised absences, you may have already issued a Show Cause Letter.

Now that you’ve received the employee’s written reply, the next critical step is to evaluate it objectively, fairly, and within the boundaries of Malaysian employment law.

What Happens After a Breach and Show Cause Letter

Once you suspect or identify a breach of contract of employment, like not following work schedules, ignoring confidentiality obligations, or refusing lawful instructions, you likely followed protocol by conducting a preliminary investigation, and then issuing a Show Cause Letter.

This letter allows the employee to explain themselves in writing. It’s a formal step required to uphold natural justice, a fundamental concept under the Industrial Relations Act 1967 and reinforced by various decided cases, and the Code of Conduct for Industrial Harmony 1975.

You’re now at the evaluation stage. This moment is crucial, it could lead to resolution or trigger a formal inquiry or termination process.

Here’s what Malaysian law expects of you when handling the reply:

  • Employment Act 1955
    • Requires fair procedure before termination, especially for misconduct or breach of terms.
  • Industrial Relations Act 1967
    • Provides employees the right to challenge dismissals if they feel it was without “just cause or excuse.”
  • Code of Conduct for Industrial Harmony
    • Though not legally binding, Industrial Courts often use it to assess whether employers acted reasonably.

In short, the law does not just focus on what the employee did—it looks closely at how you respond.

How You Can Assess the Employee’s Reply

When reviewing the reply, ask yourself the following:

1. Does the explanation address the core issue?

Is the employee explaining why the breach occurred? Or are they avoiding the actual point?

2. Is the explanation consistent with known facts?

Check attendance records, witness statements, or any relevant emails. Does their version match?

3. Was evidence provided?

For example, if the employee says they were absent due to a medical emergency, did they attach a medical certificate?

4. Is it a one-off or part of a pattern?

An honest mistake may deserve leniency. But repeated breaches, even with excuses, may warrant a stricter response.

5. Is the tone cooperative or confrontational?

While not the deciding factor, an employee’s attitude may give you insight into their willingness to resolve the issue.

Evaluating the reply doesn’t mean rushing to a conclusion. Your role is to be fair, thorough, and keep a written record of your decision-making.

How This Step Helps You

A careful evaluation protects you in several ways:

  • It shows you gave the employee a real chance to explain, which is essential in any dispute or Industrial Court case.
  • It gives you clear justification for your next step: dropping the matter, issuing a warning, or starting a domestic inquiry.
  • It helps avoid future disputes or claims of unfair dismissal.

What You Can Do Next

Once you’ve reviewed the employee’s explanation, here’s how you can move forward:

1. If the explanation is valid

You may decide to drop disciplinary action or give a verbal warning. Keep documentation to show you acted in good faith.

2. If the explanation is unclear or incomplete

Consider requesting further clarification or moving forward with a Letter of Charge to state the offence and initiate a Domestic Inquiry formally.

3. If the reply confirms the breach

You’re within your rights to escalate the matter, especially if trust has been broken or there’s a repeated pattern.

A Step-by-Step Strategy for Employers

Here’s a practical approach you can follow:

1. Document and review the employee’s reply carefully.

Ensure you have all related records and evidence ready.

2. Compare the explanation against facts.

Check for inconsistencies or missing context.

Getting a second opinion ensures you’re on solid ground.

4. Decide on one of the following actions:

  • Drop the case
  • Issue a formal warning
  • Serve a Letter of Charge for a Domestic Inquiry
  • Consider alternative disciplinary measures if appropriate

5. Keep everything in writing.

If challenged later, notes, letters, and decision summaries will protect your business.

Final Thoughts

Evaluating an employee’s reply to a Show Cause Letter is not just a formality—it’s a legal and ethical checkpoint.

By handling this step carefully, you protect your company from unfair dismissal claims and maintain a reputation for fairness and professionalism.

Getting legal advice can provide clarity and peace of mind if you’re unsure about how to proceed after reading the reply.

Need help deciding your next step?
Consult a legal expert in employment matters to ensure your disciplinary process is legally sound and risk-free.

FAQ

1. What is the purpose of a Show Cause Letter?

A Show Cause Letter gives the employee a formal opportunity to explain alleged misconduct or a breach of contract. It’s a critical step that upholds natural justice and protects employers from unfair dismissal claims.

2. Do I have to accept the employee’s explanation at face value?

No. You should objectively assess whether the explanation is credible, consistent with evidence, and addresses the actual issue. Supporting documents (like medical certificates or emails) should also be considered.

3. What if the employee avoids the question or replies vaguely?

If the reply is unclear, evasive, or does not address the breach properly, you may proceed with issuing a Letter of Charge and initiate a Domestic Inquiry.

4. Can I terminate the employee immediately after receiving a poor reply?

Not immediately. Even if the reply is unsatisfactory, Malaysian employment law recommends a formal inquiry—especially for misconduct cases—to ensure fairness and legal compliance.

5. How much time should I give an employee to respond to a Show Cause Letter?

Typically, 24 to 72 hours is considered reasonable, depending on the seriousness and complexity of the allegation.

6. What if the employee admits the breach in their reply?

You may proceed with disciplinary action if the breach is admitted and considered serious or repeated. However, before dismissal, it is still advisable to follow fair procedure, such as a Domestic Inquiry.

7. Can I issue a warning instead of taking further action?

If the explanation is acceptable or the breach is minor, you can issue a verbal or written warning and monitor the situation from then on.

8. Is it mandatory to conduct a Domestic Inquiry after a poor reply?

While not mandatory under the law, conducting a Domestic Inquiry is highly recommended. Industrial Courts often view their absence as procedural unfairness, even when there is evidence of misconduct.

You risk being challenged for unfair dismissal under the Industrial Relations Act 1967. If due process isn’t followed, this could lead to conciliation, court proceedings, or financial compensation.

Yes. Consulting HR or legal professionals helps ensure you interpret the reply fairly, follow proper procedure, and avoid potential legal pitfalls.

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