Show Cause Letter – What is a Show Cause Letter and What you Should Do if you receive one?

What is a Show Cause Letter

A show cause letter is a formal communication/documentation issued by an employer requesting an employee to explain or justify conduct that may violate company policies or employment terms. It forms part of the employer’s investigative and disciplinary framework, giving the employee a chance to present their perspective before any further action is taken—such as a domestic inquiry or other disciplinary measures.

A properly drafted show cause letter contained:

  1. Alleged misconduct of the employee;
  2. The dates, times and location of the alleged breach and/or misconduct;
  3. Provides deadline for the employee’s response; and
  4. May provide that the employee is suspended pending reply and investigation outcome.

Thus, in an event that you’re subjected or received a show cause letter, what you should do? Should you ignore the letter especially if the allegation is unwarranted and unsubstantiated? Could an employee then, treat the issuance of the show cause letter to justify a constructive dismissal claim?

Case Law

With these questions in mind, we humbly refer to the following cases:

  1. Rudy Darius Ogou v. Ming Court Hotel (Kuala Lumpur) [2000] – Award No. 610 of 1998

The issuance of the show cause letter was part and parcel of the investigation, and it also gave him an opportunity to explain the alleged misconduct for alleged breach of the House Rule and I cannot understand how it could have constituted an act of victimisation. The show cause letter cannot amount to a fundamental breach of the contract of employment.”

  • Animesh Kumar Dev Ajoy Kumar Dev and Jardine Shipping Services (Malaysia) Sdn Bhd – Award No. 779 of 2018

“[23]…If the Claimant has good grounds to counter the allegations made against him, he should have replied to the show cause letter instead of going for constructive dismissal. The burden of proof for a constructive dismissal lies with the Claimant unlike in the case of a dismissal by the employer where the burden of proof will then lie with the Respondent. That being the case, the court finds that it is too late in the day for the Claimant to try and refute the allegations in the show cause letter.”

[30] This Court is of the same view in that the Claimant should have replied to the show cause letter instead of initiating his own process for constructive dismissal

Both cases above illustrate that an employee should never ignore a show cause letter, even if the allegations appear baseless, exaggerated, or entirely unfounded.

The Industrial Court has consistently held that responding to a show cause letter is a crucial part of the disciplinary and investigative process. It preserves the employee’s right to be heard and ensures that their side of the story is placed on record before the employer decides on further action (either domestic inquiry or dismissal)

Conclusion

A show cause letter can be stressful, especially when the allegations feel unfair or unfounded. However, the law is clear: you should always reply, and reply thoughtfully. Your response protects your rights, strengthens your position, and ensures you do not inadvertently undermine your own case—whether you remain employed or the matter escalates to the Industrial Court.

Not sure how to reply to a show cause letter?

Then it is always wise to seek guidance from lawyers or employment law practitioners who can help you craft a proper, accurate, and strategic response. A well-prepared reply can make the difference between protecting your rights and unintentionally weakening your own case.

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