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1) Is it legal to resign within 3 months of join?
Check out your employment contract wording

2) I may face any legal issues from current employer?
They will probably make you pay their expenses

3) Is there any policy by immigration (MDEC) to cancel / reject my next EP as I moved from company within 3 months?
No

4) Any other thing you can share , Shall I resign or not?
Company 1 can basically stop you joining another company by not giving your a No Objection Letter - which you need to apply for an EP with another company.

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Doesn't he/she need to leave the country while the new EP is processed? I don't  know, but remember having to do that once. But that was a long time ago.

The rule right now is that if it is a simple change of company, then it is not necessary to leave the country.

However, if Company 1 refuses to give the No Objection Letter, then they can cancel the EP and DPs and the person will have to leave the country. Remembering it is important that they ARE cancelled to avoid complications.

This results in a "cooling off period" outside the country. However, it has been reported on this Forum lately that Company 2 even after the COP will still require the NOL from Company 1. So effectively the person may be bloked from working in Malaysia without some sort of appeal process.

The best scenario is that Company 1 is pleased to get rid of an unhappy worker and provides the NOL.

When applying for the EP at the new company..immigration will ask you to shorten the existing EP..if your new EP is not approved by the time your current EP expires you have to leave the country. They will take it as a new application. You also hv to provide your tax clearance receipts and EA Form