BETWEEN
AND
Reference:
1
AWARD
Brief Facts
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(f) Implements projects as required by the Company .
The Issues
The main issue before the Court is whether the Claimant was
dismissed for just cause or excuse. To ascertain this, it is incumbent
upon this Court to consider the following;
The Law
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“Where representations are made and are referred to
the Industrial Court for enquiry, it is the duty of that
Court to determine whether the termination or
dismissal is with or without just cause or excuse. If the
employer chooses to give a reason for the action taken
by him the duty of the Industrial Court will be to enquire
whether that excuse or reason has or has not been
made out. If it finds as a fact that it has not been
proved, then the inevitable conclusion must be that the
termination or dismissal was without just cause or
excuse. The proper enquiry of the Court is the reason
advanced by it and that Court or the High Court cannot
go into another reason not relied on by the employer or
find one for it.”
4
In the Court of Appeal case of William Jacks & Company (M)
Sdn. Bhd. v. S. Balasingam [1997] 3 CLJ 235. His Lordship
Gopal Sri Ram JCA had this to say:-
5
In the case of Stephen Bong v FCB (M) Sdn Bhd & Anor
[1999] 1 LNS 131 the High Court had articulated as thus:-
6
It is trite that the burden of proof lies on the employer to prove
the redundancy. In Bayer (M) Sdn. Bhd. v. Ng Hong Pau [1999]
4 CLJ 155 the Court of Appeal enunciated as follows:
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Wong Wee Woon To: Everybody
20/01/2006 01:26 pm cc: Michael Dr Teng/IHL-HQ/SIN/IHL@SINIHL, Cecilia
Tong/IHL-HQ/SIN/IHL@SINIHL, Val
Ortega/IHL-HQ/SIN/IHL@SINIHL
Subject: Consolidation and Rationalisation of Informatics Malaysia
Dear colleagues,
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For a start the Corporate Office of MTCO will be merged with
the KL Center so that the above goals will realised. This new
entity will be named INFORMATICS KL.
Operations:
Academic:
Victor, Christopher and Pui Ngan will be talking to all MTCO and
KL Center staff to outline the new structure for Informatics KL
and the accompanying plans going forward.
Regards
Wee Woon
9
Through this e-mail, COW1 informed every employee including
the Claimant that the financial outlook of the Company for 2006 was
bad with projected revenue falling below the budget by 35% and
operating expenses escalating beyond the Company's means.
CESSATION OF EMPLOYMENT
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As a result of the restructuring and reorganization of the
Company's overall operations, your position has become
redundant. Unfortunately, we have no suitable alternative
position for you.
Yours sincerely,
t.t
…..................
WENDY TAN
Human Resource Manager
11
The audited reports and financial statements of 2002 (Page 35
of COBS) shows that the Company experience a loss of
RM505,704.00. In year 2003, the Company loss was RM627,221.00
and in year 2004 the loss was RM2,453,396.00 (Page 16 of COB).
The Company continued to experience losses of RM2,616,817.00 in
2005 (Page 35 of COB).
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“teach out” and decided to freeze enrolment so that the centers could
be shut down, thus reducing the cost of operating expenses. The
freezing of enrolment resulted in lesser teaching hours for lecturers
and they had to be retrenched. This exercise was carried out
throughout all centers nationwide.
In her evidence, she states that she was not given any warning
before the Company issued her the letter of retrenchment dated
4 November 2006 informing her that her position had become
redundant.
13
She was not paid any retrenchment benefits when she was
asked to leave in spite of having served the Company diligently for
more than 15 years. She had performed her duties well. According
to her evidence, she was hardworking and dedicated to the best of
her ability. The Company had, in recognition of her hard work and
excellent performance, paid her year end bonuses, profits under the
Company's Profit Sharing Scheme and Performance Allowance.
(a) Apply the LIFO Principle when selecting her for the
retrenchment;
14
She had on numerous occasions, requested the Company to
reconsider their decision to retrench her but the Company was
adamant and refused to accommodate her request. After her
retrenchment, her duties were taken over by the Academic Head of
the Centre.
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business except at a loss or on meagre profits and
c) whether the order of retrenchment was motivated
by bad faith and a desire to victimise or harass the
workman whom for some ulterior reasons the employer
wanted to discharge or dismiss”. [Emphasis Added]
The Claimant also submitted that she was not warned of her
impending retrenchment. COW1 in his evidence states that an
e-mail (supra) was sent out on 20 January 2006 to every employee
of the Company notifying that there was a restructuring and
reorganizing exercise taking place in the Company due to the fact
that the Company's financial outlook for the year 2006 was bad.
16
On 22 September 2005 all the Center Manager received an
e-mail (Page 5 of COB) from one Andrew Ng requiring them to bring
down the manpower expenses to the range of 35%. All centres were
also required to submit their action plan.
A : Yes, I did.
A : Yes.
A : Yes.
17
A : Yes.
A : Yes.
A : Yes.
A : Yes.
A : Yes.
A : Yes.
18
Q : Refer to paragraph 7, would you agree (see paragraph
7 “This will result in.....”) Wong inform all the
employees of the Company the staff will have
enlarged duties and responsibilities and excess staff
will be made redundant.
A : Yes.
A : Yes.
From the above evidence, Claimant was fully aware that the
Company were not fairing well financially and were carrying out
manpower rationalization exercise. Therefore the Claimant has been
amply forewarned about the Company's intention to reduce its work
force and excess staff being made redundant.
19
In N. Vijayan K. Nagarayan v Siebel System (M) Sdn.
Bhd. [2006] 1 ILR 385, it was held as follows;
On the issue that the Claimant was victimised as she was not
paid any retrenchment benefits whereas her colleagues were given
the retrenchment benefits it is pertinent to note the following
evidence in the cross-examination of COW1.
A : No.
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Meng Tatt was paid RM50,136.81 and Ms. Nirmala
Devi was paid RM17,840.49, what positions were
they holding?
A : No.
A : No, I disagree.
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It is pertinent to note from these evidence that the Claimant
who brought up this issue failed to inquire further the reasons for the
from evaluating that evidence and to decide whether there was any
stated that she doesn't have any documents to prove that her
colleagues were paid retrenchment benefits and the Court note that
the other employees who were given the benefits as in Pages 58, 59
as the e-mail issued by COW1 the Court is therefore of the view that
of Case.
its totality the Court is of the considered view that the Company has
good conscience and the substantial merit of the case without regard
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to technicality and legal form, the Court find that the Claimants'
termination was carried out with just cause and excuse. The claim is
hereby dismissed.
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