EMPLOYMENT LAW

CONSTRUCTIVE DISMISSAL

PRESENTED BY: SYAHIRAH MUHAMMAD SUFIAN SAWARI 09BB02022 BACHELOR HUMAN RESOURCE MANAGEMENT (HONS) INTERNATIONAL ISLAMIC UNIVERSITY COLLEGE SELANGOR

MAIN MENU
What Is Constructive Dismissal? To Prove The Constructive Dismissal Has Happened Behavior That Amounts to Breach of Contract Claims of Constructive Dismissal Previous Cases/Awards Statistics of Claims of Constructive Dismissal Video

What is constructive dismissal?

MEANS:

An employee is forced to leave his employment as a result of the employer breaching the employment contract. The employee treats himself as having been dismissed.

To Prove the Constructive Dismissal has happened

1
2 3

Behavior That Amounts to Breach of Contract 1

A deliberate breach of a term in your contract of employment such as a pay cut Withdrawal of other benefits provided to you, e. g. a company car

An important and significant change in your duties e. g. if you are a sales manager and you have most of your sales activities removed Imposing a disciplinary punishment which is grossly out of proportion to the offence that you have committed.

A serious failure to provide you with a safe working environment

Claims of Constructive Dismissal

Claims of Constructive Dismissal are dealt with like all other claims of unfair dismissal under Section 20 of the Industrial Relations Act 1967

e.g: The employee making the claim will leave his employment and report to the Industrial Relations Department. Conciliation will be conducted and if no settlement is reached, the Minister of Human Resources will decide whether or not to refer the dispute to Industrial Court for arbitration.

Previous Cases / Awards

Lewis v. Motorworld Garages Ltd (1985) IRLR p.465

The Claimant was demoted to an unfair position. His actual pay was reduced and he was criticised persistently over eight (8) months by the employer and threatened with dismissal if his performance did not improve. The Court held that the Claimant was entitled to treat the conduct of the employer as amounting to a breach of the implied obligation of mutual trust and confidence and thereby enabling the Claimant to complain that he had been constructively dismissed.

Previous Cases / Awards

Amanah Butler (M) Sdn Bhd v. Yike Chee Wah (1994) IRLR p.5,

The Court held that the Claimant had been constructively dismissed by reason of the action of the employer in unilaterally varying/reducing the salary of the Claimant.

Previous Cases / Awards

Hotel Malaya v. Goh Hock Fong (1994) 2 ICR p.810

The Claimant was transferred from a managerial position to what was in fact a storekeepers position. The Claimant was held to have been constructively dismissed.

Analysis of Awards of Dismissal Cases (2005-2011)

TYPES OF DISMISSAL 2005 2006 2007 2008 2009 2010 2011

Constructive Misconduct

22 2144

42 2051

97 1200

126 878

140 613

135 608

91 639

Retrenchment
Others TOTAL

16
0 2182

32
0 2125

422
402 2121

155
573 1732

114
328 1195

67
479 1289

90
640 1460

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