How to conduct a domestic inquiry

An employer usually holds a domestic inquiry when an alleged misconduct is serious enough that dismissal or another major punishment is possible. It is the employer's way of showing the decision was made after a fair hearing.

The rules on misconduct, inquiry and punishment are set mainly by the Employment Act 1955 and the Industrial Relations Act 1967, and by court decisions on fairness. Read the current texts on Laws of Malaysia and guidance from the Department of Labour.

This guide is general information, not legal advice. For a specific case, speak to a qualified employment lawyer.

Before the hearing, the employer investigates the facts and decides whether there is a case to answer. Keep the investigation separate from the people who will later decide.

• Collect documents, CCTV, system logs and witness statements while they are fresh
• Consider whether to suspend the employee during the investigation, and check the current rules on suspension and pay in the Employment Act 1955 before doing so
• Issue a show-cause letter if your procedure uses one, and consider the reply
• Draft clear charges: what happened, when, where, and which rule or duty was breached

A weak investigation is hard to fix at the hearing. The Employee Disciplinary Management & Domestic Inquiry course covers investigation and charge drafting.

The panel should be people who were not involved in the incident or the investigation and who have no stake in the outcome. Each role has a clear job, and nobody should hold two roles.

The employee should be told in writing of the date, time, venue, the charges and their right to bring witnesses and documents. Check whether your policy or a collective agreement allows a representative.

Run the hearing so the employee can answer every piece of evidence against them. The panel listens, asks questions to understand, and does not argue the employer's case.

1. Open the hearing, introduce everyone and read the charges.
2. Ask the employee whether they understand the charges.
3. The presenting officer calls witnesses, and the employee may question each one.
4. The employee presents their side and calls their own witnesses.
5. Both sides may sum up.
6. Close the hearing and explain what happens next.

Keep notes of questions and answers, not just a summary, and have them checked for accuracy.

The panel writes its findings on each charge with reasons, and management decides the punishment based on those findings. The punishment should fit the seriousness of the misconduct and be consistent with past cases.

• Inform the employee of the decision in writing
• Explain any appeal route your policy provides
• File the charges, notices, notes, evidence, findings and decision together

A dismissed employee may bring a claim of unfair dismissal under the Industrial Relations Act 1967, so the record matters. To check your process, use the free separation compliance check and the employee separation checklist template. The Certified HR Separation Manager is a Certifyd certification aligned to NOSS competency units.