1. The employer may transfer workers:
  • from one department to another; or
  • from one part of the establishment to another; or
  • from one branch to another; or
  • from one company to another within the organisation or within the group or to an associate company.
  1. The right of the employer to transfer a employee within the organisation is governed by Section 13(3)(b) of the Industrial Relations Act 1967.
  2. Section 13(3)(b) of the Industrial Relations Act 1967 provides that, such transfer does not entail a change to the detriment of a workman in regard to his terms of employment.
  3. The right to transfer a worker is also an implied prerogative of the employee, subject however, to express terms to the contrary.
  4. Such implied right to transfer however should be implemented bona fide, name in the interest of the business and not capriciously nor for a collateral purpose of victimising workmen or in pursuance of an unfair labour practice.
  5. Transfer of worker which has been unreasonable, unfair or want of bona fides may attract intervention of the Industrial Court.
  6. In BP Malaysia Sdn Bhd v Chua Among @ Chai See Mong [1995] 1 ILR 357, the Industrial Court had stated as follows:

“It is well recognised principle that the prerogative of transfer is managerial prerogative and transfer from one particular post to another or from one place to another should be left entirely to the management provided the status and remuneration of the employee are not affected. Subject to certain limitations, a company has the right to transfer its employees within its organisation for the efficient running of its business unless such exercise is actuated by indirect motive or mala fide or is made for the purpose of harassing or victimisation of the employees. No matter how unreasonable a transfer order may be, so long it is within the scope of employment and lawful order, an employee is duty bound to obey it. No employee has a monopoly or lien on a particular type of duty to be assigned to him or to monopoly be stationed at a particular work place statically.”


Industrial Relations Act 1967

13.Collective bargaining

(1)        Where a trade union of workmen has been accorded recognition by an employer or a trade union of employers—

(a)the trade union of workmen may invite the employer or trade union of employers to commence collective bargaining; or

(b)the employer or the trade union of employers may invite the trade union of workmen to commence collective bargaining.

(2)        …

(2A)    …

(3)       Notwithstanding subsection (1), no trade union of workmen may include in its proposals for a collective agreement a proposal in relation to any of the following matters, that is to say—

(a)the promotion by an employer of any workman from a lower grade or category to a higher grade or category;

(b)the transfer by an employer of a workman within the organization of an employer’s profession, business, trade or work, provided that such transfer does not entail a change to the detriment of a workman in regard to his terms of employment;


Source: Retrenchment (The Law and Practice in Malaysia). Sweet & Maxwell Asia.




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Employer’s Rights to Transfer Workers-Part 1