Unlawful Dismissal Claims: By the Numbers - Industrial Court Trends Q3 2025

Our team has completed the review of Industrial Court awards on unlawful dismissal cases for the 3rd quarter (Q3) of 2025. 

In Q3 alone, 119 cases were decided by the Industrial Court with approximately RM8.5 million awarded to employees during this period. Comparatively, Q3 has seen a decrease compared to the previous quarters this year. Cumulatively, employers have lost an estimated RM37 million in 2025 due to unlawful dismissal claims. It is likely that figures in 2025 will surpass the previous 2 years (~RM39 million in 2023 and ~RM48 million in 2024).

Popular Cases at the Industrial Court

The top 3 categories of cases brought before the Industrial Court in 2025 are:

1. Misconduct

   This would include all types of misconduct

   
   

2. Retrenchment

   Retrenchment includes reorganisation, VSS & MSS - It remains popular as the Industrial Court is still clearing cases from the covid era. 

   
   

3. Constructive Dismissal

   Constructive dismissal cases have been on an increase compared to previous years. Dataset for 2025 suggests a higher win rate for employees.

Case Outcomes

As of Q3 of 2025, the Industrial Court has decided a total of approximately 414 cases - out of which, employers have won 232 and employees 182. The overall win rate for employers is currently at 56%.

Key Takeaways

Year after year, we see the same patterns emerging at the Industrial Court. Employers should take this as a reminder that disputes are not isolated incidents - employees will file their cases, and employers must always be prepared. 

IR is not merely about legal compliance, neither is it about the rigid interpretation of the law. In handling cases, you are reminded to:

• Understand the law

• Anticipate potential issues 

• Resolve disputes proactively 

• Apply sound judgment 

• Showcase empathy 

As HR professionals, you must pay attention to both the legal and relational aspects as part of your risk management strategy.

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