Promises at work often carry more weight than words alone. They shape motivation, loyalty, and the sense of belonging. When a boss promises promotion, the employee naturally builds hope and adjusts personal and family expectations around that assurance. But what happens when those hopes are crushed—when instead of recognition and advancement, the employee is sidelined, only to see a contract staff take the very role that was promised? This situation is more than personal disappointment; it raises deep questions of fairness, dignity, and legality.

The Emotional Toll of Broken Promises

At its core, the story begins with trust. A promotion is not just a title or a salary increase—it is recognition of years of dedication. When a boss promises it, the employee invests even more energy, working late nights, accepting extra responsibilities, and enduring stress, all with the belief that the reward is near. But when the promise is broken, the impact is devastating.

The employee feels betrayed: “Was my hard work invisible? Was loyalty a mistake?” Colleagues may whisper, wondering why the contract staff was elevated while the permanent, experienced employee was overlooked. This undermines morale not only for the individual but for the whole team, eroding the culture of trust that any workplace needs to thrive.

In Malaysia, where respect and hierarchy play an important role in work culture, being replaced by someone on a short-term contract carries even greater humiliation. It suggests that experience, years of service, and loyalty are expendable, easily swapped for cost-cutting measures or hidden favoritism.

Why Employers Choose Contract Staff Over Existing Employees

Employers sometimes defend such actions with business reasoning. Hiring a contract staff can appear “cheaper” or “more flexible.” A contract worker can be released when budgets shrink, while a permanent staff carries longer-term obligations such as retirement benefits, EPF contributions, and the possibility of retrenchment compensation.

But when this flexibility comes at the cost of fairness, it reveals a deeper problem. According to the Employment Act 1955 (as amended in 2022), all workers under a contract of service—whether permanent or fixed-term—deserve protection from discrimination. The Act explicitly prohibits discriminatory practices in employment. If a permanent worker is overlooked purely because it is cheaper to replace them with a contract staff, questions of unfair labour practice may arise.

The Legal Perspective in Malaysia

From a legal standpoint, several frameworks become relevant:

1. Employment Act 1955 (Akta Kerja 1955, Akta 265)
   This Act governs contracts of service, termination, discrimination, and benefits. Section 60N addresses redundancy, while Section 69F prohibits discrimination in employment. If an employee is sidelined for promotion because of cost-cutting or preference for contract status, the employee may file a complaint with the Director General of Labour under Section 69.
2. Employment (Amendment) Act 2022
   Effective 1 January 2023, amendments strengthen protection for employees, extending coverage to nearly all private-sector workers. Notably, it imposes a prohibition on discrimination in employment, recognizing the right of workers to be treated fairly.
3. Industrial Relations Act 1967 (IRA)
   The IRA protects employees from unfair dismissal and provides the right to bring disputes before the Industrial Court. If a permanent worker can demonstrate that they were unfairly deprived of advancement opportunities or indirectly forced out in favour of a contract staff, they may have grounds for representation under Section 20 of the IRA (on dismissals).
4. Trade Unions Act 1959
   If the workplace is unionized, the trade union can take up the issue as a trade dispute—arguing that bypassing permanent staff for contract hires undermines agreed collective agreements or established promotion procedures.

A Question of Fairness: Contract vs. Permanent

Contract staff are not inherently less capable. Many bring strong skills and fresh ideas. But the issue here is fairness: Should a long-serving employee with proven loyalty be passed over in favour of someone on temporary terms?

The International Labour Organization (ILO) emphasizes fair treatment and equal opportunity as part of decent work standards. Malaysia, by amending its Employment Act, has sought to align more closely with these standards. The message is clear: decisions about promotion must not be arbitrary or discriminatory.

The Broader Impact on Workplace Culture

When promises of promotion are broken, the damage spreads far beyond one individual. Other staff begin to doubt the credibility of management. Why work hard if promises are empty? Why commit long-term if loyalty is not rewarded? This mindset fuels disengagement, lower productivity, and even higher turnover.

Worse, it creates an unhealthy power dynamic: employees feel they are at the mercy of bosses’ whims rather than protected by clear systems and fair policies. The ripple effect undermines industrial harmony, the very goal that the Industrial Relations Act 1967 seeks to uphold.

Possible Remedies for the Employee

For the employee who has been sidelined, several steps are possible:

1. Seek Clarification in Writing
   Before escalating, it is wise to request an official explanation. Was the contract staff promoted because of qualifications, or was it purely a cost decision?
2. File a Complaint with the Labour Department (JTKSM)
   Under the Employment Act, complaints about discrimination or unfair treatment can be lodged with the Director General of Labour.
3. Industrial Relations Representation
   If the situation amounts to constructive dismissal—where the employee feels forced to resign because promises were broken and fairness denied—they can lodge a representation under Section 20 of the IRA within 60 days of termination or resignation.
4. Union Support
   If unionized, the employee can rally support through the trade union. A collective voice often carries more weight than an individual complaint.

Lessons for Employers

Employers should remember that loyalty is a two-way street. While cost control is legitimate, replacing permanent staff with contract staff for roles that were promised as promotions sends the wrong message. Transparent promotion policies, fair selection processes, and adherence to the law are not only moral duties but also practical measures to ensure industrial harmony.

Investing in employees builds reputation, stability, and long-term productivity. Breaking promises may yield short-term savings but often results in higher turnover, reputational damage, and potential legal disputes.

Conclusion

The story of a boss who promises promotion but replaces the employee with a contract staff is not just a tale of betrayal—it is a mirror reflecting deeper issues of fairness, dignity, and compliance with Malaysian labour law. At stake is more than one person’s career; it is the trust that binds employees to organizations.

Labour laws like the Employment Act 1955, the Industrial Relations Act 1967, and the Employment (Amendment) Act 2022 provide safeguards against such unfair practices. Yet, laws alone cannot guarantee justice. Employers must cultivate integrity, and employees must know their rights and assert them when promises are broken.

Ultimately, a workplace thrives not when promises are casually made and broken, but when commitments are honoured, fairness prevails, and every worker—permanent or contract—feels valued for their contribution.