How to Serve a Letter of Charge to an Employee for Misconduct

Q: Is serving a Letter of Charge legally required before terminating an employee?

Yes, especially in misconduct cases. While not expressly mandated by statute, failing to issue a Letter of Charge before dismissal may be seen as a denial of natural justice and can render the termination procedurally unfair under the Industrial Relations Act 1967.

Q: What must be included in a valid Letter of Charge?

It must clearly state the nature of the alleged misconduct; the date and details of the incident(s); notification of the Domestic Inquiry; and the employee’s right to defend themselves, call witnesses, and have a representative.

Q: Can a Letter of Charge be vague or general?

No. Allegations must be specific and supported by facts. Vague wording (for example, “poor behaviour”) may not stand up at an inquiry or in the Industrial Court. Precision strengthens the employer’s case and upholds fairness.

Q: How should the Letter of Charge be delivered to the employee?

Ideally, hand-deliver the letter and obtain written acknowledgement. If that is not possible, send it by registered post or official email with delivery/read receipt. Always keep proof of delivery.

Q: Can an employee be suspended after receiving the Letter of Charge?

Yes. The employee may be suspended with full pay pending the Domestic Inquiry to prevent disruption, witness interference, or evidence tampering. This is a neutral administrative step, not a disciplinary sanction.

Q: Who should conduct the Domestic Inquiry after serving the Letter of Charge?

An impartial panel—typically a chairperson and two members—who are not involved in the incident or prior investigations, ensuring the employee has a fair chance to be heard and present evidence.

Q: Can the employee bring someone with them to the Domestic Inquiry?

Yes. The employee may be accompanied by a representative, such as a union representative or a colleague, consistent with principles of natural justice and procedural fairness.

How to Serve a Letter of Charge to an Employee for Misconduct

For Employers Facing Employee Misconduct

If you’re an employer dealing with a case of serious employee misconduct , and you’ve investigated the matter, issued a Show Cause Letter, and received an unsatisfactory explanation. Now you’re wondering: what’s the proper way to serve a Letter of Charge?

This stage is crucial. Done correctly, it protects your organisation and upholds procedural fairness. Done poorly, it could expose your company to unfair dismissal or wrongful discipline claims. Here’s what you need to know next.

When Misconduct Requires Formal Disciplinary Action

Misconduct in the workplace can vary in severity, from lateness and rudeness to more serious acts like dishonesty, workplace harassment, or unauthorised absence. After issuing a Show Cause Letter and reviewing the employee’s response, you may determine that the misconduct needs to be addressed through a formal inquiry process.

This is where the Letter of Charge comes in. A Letter of Charge is a legal and procedural requirement that signals the transition from investigation to formal inquiry. Failing to handle it properly could jeopardise your entire termination process.

What the Law Says About Serving a Letter of Charge in Malaysia

Under Malaysian employment law, employers must follow a fair and transparent process when disciplining or dismissing an employee. This includes:

Employment Act 1955
- Sets out lawful termination procedures and protects employee rights.
Industrial Relations Act 1967
- Allows employees to claim unfair dismissal if due process is not followed.
Code of Conduct for Industrial Harmony 1975
- Not legally binding but widely accepted as best practice, especially concerning domestic inquiries.

A Letter of Charge is issued after an employee fails to respond to a Show Cause Letter satisfactorily. It sets the stage for a Domestic Inquiry (DI), a formal internal hearing to evaluate the misconduct allegation.

To be valid and fair, your Letter of Charge should:

Clearly state the alleged offence or misconduct.
Specify the date(s) and details of the incident(s).
Indicate that a Domestic Inquiry will be held.
Mention the employee’s right to be heard, present evidence, and bring a representative.

Issuing this letter is not optional. Skipping or mishandling this step can invalidate any dismissal decision that follows.

How Legal Support Can Help You Get It Right

Serving a Letter of Charge may seem simple, but it carries legal weight. If your wording is unclear or the allegations are not specific enough, it could weaken your case in an Industrial Court.

Here’s how legal professionals can support you:

Drafting the Letter of Charge in precise, accurate terms.
Ensuring procedural compliance with Malaysian labour law and best practices.
Reviewing evidence to confirm whether a Domestic Inquiry is justified.
Guiding the Domestic Inquiry process from notice to conclusion.
Helping mitigate risks of unfair dismissal claims.

By involving legal expertise early, you avoid costly errors and maintain fairness.

Step-by-Step Strategy for Serving a Letter of Charge Lawfully

Follow these steps to protect your company while ensuring the employee’s right to a fair process is respected:

1. Review the Employee’s Reply to the Show Cause Letter

Confirm that the response is unsatisfactory, evasive, or inconsistent.
Check that you have solid evidence to support the charge.

2. Prepare a Specific and Factual Letter of Charge

Describe the alleged misconduct clearly: What was done? When? Where?
Avoid vague language like “poor behaviour” — be precise and factual.
Example: “On 15 June 2025, you were absent without prior approval and failed to notify your supervisor.”

3. Notify the Employee of the Domestic Inquiry

Include in the letter the planned date and time of the inquiry.
Inform the employee of their right to:
- Be heard
- Bring a representative (union member or colleague)
- Present witnesses and evidence

4. Deliver the Letter Properly

Hand it over in person and have the employee acknowledge receipt.
If not possible, send via registered post or email with read confirmation.
Keep copies of all correspondence and proof of delivery.

5. Suspend the Employee (if necessary)

If there’s a risk of interference or disruption, suspend with full pay until the inquiry is concluded.
Clearly explain that this is not a punishment, but a neutral administrative step.

6. Proceed with the Domestic Inquiry

Form an impartial panel (not involved in the case).
Follow a clear process—gather statements, review evidence, and give the employees an opportunity to defend themselves.

7. Document Everything

Keep records of all steps taken — investigations, letters, meeting minutes, and witness statements.
These will be vital if the matter escalates to the Industrial Court.

Final Thoughts

If you’ve reached the point where a Letter of Charge is necessary, you’re dealing with a serious employment issue. You must carry out this step carefully and lawfully.

A well-drafted, properly served Letter of Charge protects your organisation from future legal action and reflects your commitment to fair, respectful, and lawful employment practices.

If you’re unsure how to proceed, consult an employment law professional before taking action. A misstep now could later cost your company time, money, and reputation.

Need help drafting a legally sound Letter of Charge or conducting a Domestic Inquiry? Get in touch for tailored support in handling misconduct cases professionally and lawfully.

FAQ

1. What is a Letter of Charge, and when should it be issued?

A Letter of Charge is a formal document served to an employee after they have failed to explain a Show Cause Letter satisfactorily. It outlines the specific misconduct and notifies them of a Domestic Inquiry to determine the truth of the allegations.

2. Is serving a Letter of Charge legally required before terminating an employee?

Yes, especially in misconduct cases. While not explicitly mandated by statute, failing to issue a Letter of Charge before dismissal may be seen as a denial of natural justice and can render the termination procedurally unfair under the Industrial Relations Act 1967.

3. What must be included in a valid Letter of Charge?

The letter must clearly state:

The nature of the alleged misconduct
The date and details of the incident(s)
Notification of the Domestic Inquiry (DI)
The employee’s right to defend themselves, bring witnesses, and have a representative

4. Can a Letter of Charge be vague or general?

No. The allegations must be specific and backed by facts. Vague wording (e.g. “poor behaviour”) may not hold up in an inquiry or Industrial Court. Precision strengthens the employer’s case and upholds fairness.

5. How should the Letter of Charge be delivered to the employee?

Ideally, hand-deliver the letter and get written acknowledgement of receipt. Send it by registered post or official email with delivery/read receipt if not possible. Always keep documentation of the delivery.

6. Can an employee be suspended after receiving the Letter of Charge?

You may suspend the employee with full pay pending the Domestic Inquiry. This helps prevent disruption, witness interference, or evidence tampering. It is a neutral step, not a disciplinary action.

7. What if the employee refuses to accept the Letter of Charge?

Refusal to accept does not invalidate the process. You may proceed with the Domestic Inquiry if you have proof that a genuine attempt was made to serve the letter. Document the refusal.

8. Who should conduct the Domestic Inquiry after serving the Letter of Charge?

An impartial panel, typically consisting of employees not involved in the incident or prior investigations, should ensure the employee gets a fair chance to be heard and present evidence.

9. Can the employee bring someone with them to the Domestic Inquiry?

Yes. The employee has the right to be accompanied by a representative, such as a union representative or a colleague. This is in line with the principles of natural justice and procedural fairness.

10. What are the risks of skipping or mishandling the Letter of Charge?

Skipping or improperly issuing the Letter of Charge can lead to unfair dismissal claims. If challenged, the Industrial Court may rule in favour of the employee, resulting in compensation, reinstatement, or reputational damage to your organisation.