How to Write a Show Cause Letter in Malaysia (With Templates)

In every workplace, maintaining discipline and fairness is part of building a healthy company culture. When an employee’s actions or performance breach company rules, a show cause letter becomes an essential tool for employers to manage the situation properly.

What is a Show Cause Letter?

A show cause letter (or notice to explain) is a formal document issued by an employer asking an employee to explain their alleged misconduct or poor performance. Its purpose is to give the employee a fair opportunity to defend themselves before any disciplinary action, suspension, or dismissal is taken.

There are differences between show cause letter, warning letter, and termination notice. Show cause letter requests the employee’s written explanation for an alleged offence. Warning letter issued after the show cause process if the explanation is unsatisfactory. Termination notice given only after a full inquiry or final decision confirming misconduct or performance failure.

Under the Employment Act 1955 and Industrial Relations Act 1967, every employee has the right to due process. Employers must investigate, issue a show cause letter, and allow the employee to respond before taking disciplinary or termination actions.

When Should Employers Issue a Show Cause Letter?

Employers should issue a show cause letter when there is a valid reason to believe that an employee has breached company policy or failed to meet performance standards. It acts as the first step in a fair disciplinary process.

Common Situations

Misconduct: theft, fraud, harassment, assault, or conflict of interest.
Poor performance: consistent failure to meet KPIs, deadlines, or work quality.
Absenteeism or tardiness: repeated lateness or absence without valid reason.
Insubordination: refusal to follow lawful instructions or disrespecting supervisors.
Violation of company policies: misuse of company assets, social media misconduct, or breach of confidentiality.

Timeline and Procedure

Conduct a preliminary investigation to verify facts.
Issue the show cause letter, clearly stating allegations.
Give the employee a reasonable response period (usually 24-72 hours).
Review the reply before deciding on further action (e.g., warning, suspension, or domestic inquiry).

Key Elements of a Show Cause Letter

A well-written show cause letter should include:

Employee details (full name, department, and position)
Date and reference (the date of the incident and issuance)
Clear description of alleged misconduct (what happened, when, and where)
Supporting facts or evidence (documents, witnesses, or reports)
Request for written explanation (how and when the employee must respond, typically within 24-72 hours)
Possible consequences (mention that disciplinary action may follow if the reply is unsatisfactory or not submitted)

How to Draft a Show Cause Letter (Step-by-Step)

Before sending a show cause letter, employers must write it carefully to make sure it’s fair, factual, and legally sound. Follow this step-by-step guide on how to draft an effective show cause letter for your employee.

1. State the Purpose of the Letter

Begin with a polite but formal introduction, stating that the letter serves as a show cause notice for alleged misconduct or poor performance.

2. Describe the Alleged Misconduct or Issue

Detail what occurred, including date, time, and place. Be objective — avoid assumptions or emotional language.

3. Include Evidence or Witness Statements

Attach or refer to any evidence (CCTV footage, email records, witness accounts) supporting the allegation.

4. Set a Deadline for the Employee’s Response

Give a clear time frame (usually 24-72 hours) for the employee to provide a written explanation.

5. Outline Possible Next Steps

Inform the employee that failure to respond or provide a satisfactory explanation may lead to disciplinary action, including warning, suspension, or dismissal.

After the Employee Responds: What’s Next?

Once the employee replies, employers must review the response carefully and take fair action based on the facts.

Evaluate the Explanation

Read the employee’s explanation objectively. If the reply shows a genuine misunderstanding or valid reason (e.g., medical emergency), counselling or a warning may suffice.

Conduct a Domestic Inquiry (If Needed)

If the response is unclear or disputed, conduct a domestic inquiry. This formal hearing allows both sides (employer and employee) to present evidence before a panel of neutral representatives.

Make a Fair Decision

After considering all information, decide whether:

The explanation is acceptable → no further action.
The explanation is weak → issue warning or suspension.
The misconduct is proven → proceed with termination.

Always document each step to protect your company in case of legal disputes.

Sample Templates of Show Cause Letters

Below are practical examples for different situations. Employers may adjust details based on company policies.

Misconduct

[Company Letterhead]
Date: [Insert Date]

To: [Employee Name]
Position: [Job Title]
Department: [Department Name]

Show Cause Letter

Dear [Employee Name],

It has been brought to our attention that on [Date], you were involved in [describe the incident, e.g. refusing to follow a supervisor’s instruction or displaying aggressive behaviour toward a colleague].

This conduct is considered a violation of the company’s Code of Conduct, specifically Clause [insert clause], which requires all employees to maintain professionalism and respect toward supervisors and colleagues.

You are hereby required to explain in writing within 48 hours of receiving this letter why disciplinary action should not be taken against you.

Please address your written explanation to [Supervisor/HR Manager’s name]. Failure to respond within the given time frame may result in disciplinary action, including suspension or termination of employment.

Sincerely,

[Name of HR Manager]
[Designation]
[Company Name]

Absenteeism or Tardiness

[Company Letterhead]
Date: [Insert Date]

To: [Employee Name]
Position: [Job Title]
Department: [Department Name]

Show Cause Letter

Dear [Employee Name],

Our attendance records show that you were absent from work on [insert dates] without submitting prior notice or approval from your supervisor.

This behaviour is considered unauthorised absenteeism, which violates Clause [insert clause] of the Employee Handbook on attendance and punctuality.

You are required to provide a written explanation within 48 hours of receiving this letter, explaining the reason for your absence and why disciplinary action should not be taken.

Please note that failure to respond within the specified time frame will be treated as non-compliance and may result in disciplinary action, including suspension or termination.

Sincerely,

[Name of HR Manager]
[Designation]
[Company Name]

Poor Performance

[Company Letterhead]
Date: [Insert Date]

To: [Employee Name]
Position: [Job Title]
Department: [Department Name]

Show Cause Letter

Dear [Employee Name],

We saw that your recent performance has not met the required standards for your role as [Job Title].

Examples include [list specific issues such as missed deadlines, incomplete reports, or repeated customer complaints], which have affected team productivity and service quality.

You are required to submit a written explanation within 72 hours of receiving this letter, outlining the reasons for your performance issues and how you plan to improve.

Should your explanation be unsatisfactory or no response be received, the company may take disciplinary action in accordance with its HR policy.

Sincerely,

[Name of HR Manager]
[Designation]
[Company Name]

Breach of Company Policy

[Company Letterhead]
Date: [Insert Date]

To: [Employee Name]
Position: [Job Title]
Department: [Department Name]

Show Cause Letter

Dear [Employee Name],

It has been reported that you have [describe the act – e.g., shared confidential company information on social media / used company property for personal gain / violated the safety policy], which is a serious breach of Clause [insert clause] of the Company Code of Conduct.

You are required to submit your written explanation within 48 hours from the date of this letter, stating your reason and any supporting facts.

Failure to respond or an unsatisfactory explanation may lead to disciplinary action, including possible termination of employment.

Sincerely,

[Name of HR Manager]
[Designation]
[Company Name]

Common Mistakes Employers Should Avoid

Even with good intentions, HR professionals often make mistakes when issuing show cause letters. Avoid these to maintain fairness and legal compliance:

Issuing Without Proper Investigation

Never send a show cause letter without verifying facts. Conduct interviews and collect evidence first to avoid bias or wrongful accusation.

Giving Insufficient Response Time

Employees must have reasonable time (24-72 hours) to respond. Rushing the process can invalidate disciplinary action.

Using Ambiguous or Threatening Language

The tone must remain professional and factual. Avoid words that sound like an accusation, e.g., “You are guilty of misconduct.” Instead, use neutral phrasing like, “It has been alleged that…”

Terminating Without Due Process

Immediate termination without a chance to explain breaches the Industrial Relations Act 1967 and may lead to wrongful dismissal claims. Always follow due process.

FAQs

1. What is the time frame for an employee to reply to a show cause letter?

Usually 24 to 72 hours, depending on company policy and the seriousness of the allegation.

2. Can an employee be terminated immediately after a show cause letter?

No. Employers must first consider the response or hold a domestic inquiry before deciding on dismissal.

3. Is a show cause letter legally required before dismissal?

Yes, it forms part of the due process under Malaysian employment law. Skipping this step can make a termination legally invalid.

4. Can an employee refuse to respond to a show cause letter?

They may refuse, but it will be taken as non-cooperation and may result in disciplinary action or dismissal.

5. What happens if the show cause letter is not properly written?

Poorly written letters can lead to misunderstandings or even weaken the company’s legal position during disputes.

6. How long should employers keep show cause letter records?

Keep records for at least five years as part of employee disciplinary documentation.

Expand Your Team with Top Talent

Reach the best candidates in Malaysia by posting on Maukerja, Ricebowl, and Epicareer through AJobThing.