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LLB Bulletin #4/2025 9 April 2025

LATEST CASES (ILR Issue 3 of 2025)

SUBJECT INDEX

ADMINISTRATIVE LAW

Judicial review – Appeal – Appeal against decision of High Court in quashing award of Industrial Court – Employees served with employer for substantial amount of years – Employees informed by employer that another company ('company') would take over business operations – Engagement with company for fixed term of two years and employees would first be required to tender resignation from employer – Company to have sole discretion whether to retain employees or not after fixed term is over – Employees refused employment with company and chose to remain with employer – Employer transferred employees to faraway places – Whether transfer exercise reasonable – Whether tainted with mala fide and ulterior motives – Whether there was constructive dismissal
Saharunzaman Barun v. Perodua Sales Sdn Bhd & Anor And Other Appeals
(Lee Swee Seng, Azhahari Kamal Ramli & Wan Ahmad Farid Wan Salleh JJCA) [2025] 1 ILR 449 cljlaw labourlaw

COMPANY LAW

Director – Termination – Director of company claimed to be dismissed from employment without any explanation proffered – Whether person holding director position can simultaneously be employee – Whether director had right to make representation to Industrial Court
Foo Tze Jin v. IPI Sendirian Berhad
(Chow Siew Lin) [2025] 1 ILR 619 cljlaw labourlaw

CONTRACT

Employment contract – Contract of service – Nature of employment and intention of parties – Employee served with employer as Principal – Contract renewed continuously for four times without break even before expiry of contract – Automatic renewal – Whether employment intended to be permanent – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5), (6A)
Brando Paul Raj Pillai v. The Grace Academy Sdn Bhd
(Vanithamany Sivalingam) [2025] 1 ILR 603 cljlaw labourlaw

Employment contract – Contract of service – Terms and conditions – Restraint clause – Employee served with employer as Principal – Contract of service contained restraint clause – Employee also ran gym business – Allegation that employee contravened restraint clause in contract of employment by running gym business – Employee terminated from employment – Whether there was contravention with employment contract – Whether there was condonation by employer – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5), (6A)
Brando Paul Raj Pillai v. The Grace Academy Sdn Bhd
(Vanithamany Sivalingam) [2025] 1 ILR 603 cljlaw labourlaw

Employment contract – Constructive dismissal – Transfer – Employees served with employer for substantial amount of years – Employees informed by employer that another company ('company') would take over business operations – Engagement with company for fixed term of two years and employees would first be required to tender resignation from employer – Company to have sole discretion whether to retain employees or not after fixed term is over – Employees refused employment with company and chose to remain with employer – Employer transferred employees to faraway places – Whether transfer exercise tainted with mala fide and ulterior motives – Whether manifested intention of employer not to be bound by employment contract – Whether there was fundamental breach of employment contract – Whether there was constructive dismissal
Saharunzaman Barun v. Perodua Sales Sdn Bhd & Anor And Other Appeals
(Lee Swee Seng, Azhahari Kamal Ramli & Wan Ahmad Farid Wan Salleh JJCA) [2025] 1 ILR 449 cljlaw labourlaw

Employment contract – Fixed term contract – Non-renewal – Claimant joined company on fixed term basis and undergone three contractual renewals – Fixed term contract not renewed – Whether contract entered into genuine fixed term contract – Whether contract of employment disguised as fixed term contract of employment – Whether claimant's employment permanent – Whether there was legitimate expectation on claimant's part that he would be offered and/or would remain in employment – Whether there were indications and/or promises by company that it would continue to keep claimant in employment
Mohammed Rishi Md Ross v. Petroliam Nasional Berhad (Petronas)
(Ahmad Razif Mohd Sidek) [2025] 1 ILR 530 cljlaw labourlaw

Employment contract – Terms and condition – Variation – Restraints of trade – Employer sought to vary employee's existing terms of employment – Variation less favourable to employee vis-à-vis original terms of employment – Employer unilaterally and arbitrarily inserted and added in new terms of employment which were not contained in original terms – Clauses on competition and non-solicitation – Employee reluctant to sign – Employer unilaterally interpreted employee's non-signing as intention not to continue employment – Employee terminated from employment – Whether employee's non-signing of revised terms and conditions amounted to intention to no longer be bound by his contract of employment – Whether gave rights to employer to terminate employee – Contracts Act 1950, s. 28
Lim Sze Kai v. HKBN JOS (Malaysia) Sdn Bhd
(Syed Noh Said Nazir) [2025] 1 ILR 556 cljlaw labourlaw

EVIDENCE

Documentary evidence – Payslips – Director of company claimed to be dismissed from employment without any explanation proffered – Whether director employee of company – Whether there were deductions of statutory contributions – Whether documentary evidence pointed towards director being employee of company
Foo Tze Jin v. IPI Sendirian Berhad
(Chow Siew Lin) [2025] 1 ILR 619 cljlaw labourlaw

LABOUR LAW

Employment – Dismissal – Constructive dismissal – Transfer – Employees served with employer for substantial amount of years – Employees informed by employer that another company ('company') would take over business operations – Engagement with company for fixed term of two years and employees would first be required to tender resignation from employer – Company to have sole discretion whether to retain employees or not after fixed term is over – Employees refused employment with company and chose to remain with employer – Employer transferred employees to faraway places – Whether transfer exercise reasonable – Whether managerial prerogative – Whether tainted with mala fide and ulterior motives – Whether an attempt to drive employees out of employment without paying termination and lay-off benefits – Whether there was constructive dismissal
Saharunzaman Barun v. Perodua Sales Sdn Bhd & Anor And Other Appeals
(Lee Swee Seng, Azhahari Kamal Ramli & Wan Ahmad Farid Wan Salleh JJCA) [2025] 1 ILR 449 cljlaw labourlaw

Employment – Dismissal – Misconduct – Domestic inquiry – Employee faced three charges of misconduct and dismissed from employment – Whether there was domestic inquiry – Whether employer afforded employee any opportunity to rebut allegations – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Yap Cheng Hong v. Universal Corporate Services Sdn Bhd
(Augustine Anthony) [2025] 1 ILR 584 cljlaw labourlaw

Employment – Dismissal – Misconduct – Engaging in business activities that conflict with employment contract – Employee engaged in another business during employment with employer – Whether employer had any prior knowledge or had given consent – Whether misconduct proven – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5) Yap Cheng Hong v. Universal Corporate Services Sdn Bhd
(Augustine Anthony) [2025] 1 ILR 584 cljlaw labourlaw

Employment – Dismissal – Insubordination – Employee terminated due to insubordination – Allegations that employee disobedient and disregarded comments and advice from superiors to improve performance – Whether insubordination proven – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Golda Fiona P Arony Pereira v. MCD Back Office Sdn Bhd
(Mohd Taufik Mohd Yusoff) [2025] 1 ILR 572 cljlaw labourlaw

Employment – Dismissal – Jurisdiction – Employee dismissed from employment due to null and invalid employment contracts – Whether employment contracts valid and enforceable – Whether dismissal with just cause and excuse – Whether claimant 'workman' – Whether court seized with jurisdiction to determine claimant's case – Industrial Relations Act 1967, ss. 2, 20(1), (3), 30(5)
Abdul Kadir Hj Abdullah v. Sabah Oil & Gas Development Corporation Sdn Bhd
(Indra Ayub) [2025] 1 ILR 515 cljlaw labourlaw

Employment – Dismissal – Misconduct – Misuse of company's property – Using employer's computer, without consent and authorisation of employer, for non-work related matters – Storing of inappropriate and explicit image – Whether there was merit to contention of invasion of privacy – Whether misconduct proven – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Yap Cheng Hong v. Universal Corporate Services Sdn Bhd
(Augustine Anthony) [2025] 1 ILR 584 cljlaw labourlaw

Employment – Dismissal – Misconduct – Unethical conduct – Attempt to obtain unauthorised bonuses – Accounts Executive/employee issued for herself four-month bonus instead of three-month bonus instructed by employer – Employee dismissed from employment – Whether there was clear instruction from employer that bonus to be issued was for three months – Whether misconduct proven – Whether there was gross negligence or outright recklessness – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Yap Cheng Hong v. Universal Corporate Services Sdn Bhd
(Augustine Anthony) [2025] 1 ILR 584 cljlaw labourlaw

Employment – Dismissal – Poor performance – Employee terminated due to poor performance – Employer gave choice to all staff to accept higher key performance index ('KPI') or end employment voluntarily – Employee chose to accept higher KPI but failed to perform or underperformed based on revised KPI – Whether poor performance established – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Golda Fiona P Arony Pereira v. MCD Back Office Sdn Bhd
(Mohd Taufik Mohd Yusoff) [2025] 1 ILR 572 cljlaw labourlaw

Employment – Dismissal – Restructuring plan – Employee terminated without prior discussion or formal meeting – Employer cited restructuring plan as reason for employee's termination – Whether employer had demonstrated how restructuring exercise was done and how many employees were affected by exercise – Whether there was distribution of work to remaining employees – Whether employer had shown it was really in need of cutting down employees to overcome financial strain – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Golda Fiona P Arony Pereira v. MCD Back Office Sdn Bhd
(Mohd Taufik Mohd Yusoff) [2025] 1 ILR 572 cljlaw labourlaw

Employment – Dismissal – Termination simpliciter – Director of company claimed to be dismissed from employment without any explanation proffered – Whether director employee of company – Whether director had right to make representation to Industrial Court – Whether termination simpliciter – Whether director dismissed with just cause or excuse – Industrial Relations Act 1967, s. 20(1)
Foo Tze Jin v. IPI Sendirian Berhad
(Chow Siew Lin) [2025] 1 ILR 619 cljlaw labourlaw

Employment – Employment contract – Non-renewal – Claimant joined company on fixed term basis and undergone three contractual renewals – Third fixed term contract not renewed – Whether contract entered into genuine fixed term contract – Whether contract of employment disguised as fixed term contract of employment – Whether claimant's employment permanent – Whether there was dismissal – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Mohammed Rishi Md Ross v. Petroliam Nasional Berhad (Petronas)
(Ahmad Razif Mohd Sidek) [2025] 1 ILR 530 cljlaw labourlaw

Employment – Termination – Contravention of restraint clause in employment contract – Employee served with employer as Principal – Employee also ran gym business – Allegation that employee contravened restraint clause in contract of employment by running gym business – Employee terminated from employment – Whether employer had knowledge of employee's business – Whether there was contravention with employment contract – Whether there was condonation by employer – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5), (6A)
Brando Paul Raj Pillai v. The Grace Academy Sdn Bhd
(Vanithamany Sivalingam) [2025] 1 ILR 603 cljlaw labourlaw

Employment – Termination – Employer sought to vary employee's existing terms of employment – Variation less favourable to employee vis-à-vis original terms of employment – Employer unilaterally and arbitrarily inserted and added in new terms of employment which were not contained in original terms – Clauses on competition and non-solicitation – Employee reluctant to sign – Employer unilaterally interpreted employee's non-signing as intention not to continue employment – Employee terminated from employment – Whether employee's non-signing of revised terms and conditions amounted to intention to no longer be bound by his contract of employment – Whether gave rights to employer to terminate employee – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Lim Sze Kai v. HKBN JOS (Malaysia) Sdn Bhd
(Syed Noh Said Nazir) [2025] 1 ILR 556 cljlaw labourlaw

Employment – Termination – Insubordination – Employee served with employer as Principal – Employer decided to wind down operations of business – Employee advertised for new students intake – Employee terminated from employment due to insubordination – Whether there were discussions on exit plan – Whether employee updated on status of business – Whether there was specific instruction from employer to employee not to perform responsibilities in future – Whether there was insubordination when employee advertised for new students intake – Whether allegation afterthought – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5), (6A)
Brando Paul Raj Pillai v. The Grace Academy Sdn Bhd
(Vanithamany Sivalingam) [2025] 1 ILR 603 cljlaw labourlaw

STATUTORY INTERPRETATION

Definition – 'workman' – Industrial Relations Act 1967, s. 2 – Whether claimant 'workman' – Whether there was dismissal – Whether dismissal with just cause and excuse
Abdul Kadir Hj Abdullah v. Sabah Oil & Gas Development Corporation Sdn Bhd
(Indra Ayub) [2025] 1 ILR 515 cljlaw labourlaw

WORDS & PHRASES

'workman' – Industrial Relations Act 1967, s. 2 – Claim for unfair dismissal – Whether claimant 'workman' under s. 2
Abdul Kadir Hj Abdullah v. Sabah Oil & Gas Development Corporation Sdn Bhd
(Indra Ayub) [2025] 1 ILR 515 cljlaw labourlaw

INDEKS PERKARA

MAHKAMAH

Bidang kuasa – Mahkamah Majistret – Ketakpatuhan award Mahkamah Perusahaan – Majistret menjatuhkan hukuman denda melebihi RM10,000 – Sama ada Majistret bertindak melebihi bidang kuasa yang diperuntukkan – Akta Mahkamah Rendah 1948, s. 87(1)(c)
Masyur Mutiara Sdn Bhd lwn. PP
(Mohamad Abazafree Mohd Abbas H) [2025] 1 ILR 481 cljlaw labourlaw

UNDANG-UNDANG BURUH

Award – Ketakpatuhan – Majikan diarahkan oleh Mahkamah Perusahaan untuk membayar faedah persaraan pada pekerja-pekerja dalam dua award berasingan – Majikan gagal membayar dan gagal membayar penuh faedah persaraan pada pekerja-pekerja – Majistret menjatuhkan hukuman denda dan denda tambahan untuk masing-masing dua pertuduhan – Jumlah denda yang dijatuhkan melebihi RM10,000 – Sama ada Majistret bertindak melebihi bidang kuasa yang diperuntukkan bawah Akta Mahkamah Rendah 1948 – Sama ada keseluruhan pendakwaan satu kesilapan dan tidak sah kerana tiada izin Pendakwa Raya – Akta Perhubungan Perusahaan 1967, ss. 51E, 51F & 56(3)
Masyur Mutiara Sdn Bhd lwn. PP
(Mohamad Abazafree Mohd Abbas H) [2025] 1 ILR 481 cljlaw labourlaw

Perkhidmatan – Penamatan – Pemberhentian kerja – Pihak menuntut membuat tuntutan perubatan anak – Syarikat mendakwa salah laku pihak menuntut dalam tuntutan perubatan tersebut – Sama ada syarikat bertindak secara bona fide – Sama ada penamatan perkhidmatan pihak menuntut dibuat secara adil – Sama ada tindakan majikan menamatkan perkhidmatan tidak wajar serta tanpa sebab atau alasan munasabah – Akta Perhubungan Perusahaan 1967, ss. 20(3) & 30(6A)
Mohd Rizal Shaharudin lwn. Tekun Nasional
(Paramalingam J Doraisamy) [2025] 1 ILR 497 cljlaw labourlaw

UNDANG-UNDANG JENAYAH

Pendakwaan – Pendakwa Raya – Alter ego – Pendakwaan terhadap majikan atas ketakpatuhan award Mahkamah Perusahaan – Majikan gagal membayar faedah persaraan pada pekerja-pekerja – Dakwaan bahawa keseluruhan pendakwaan satu kesilapan dan tidak sah kerana tiada izin Pendakwa Raya – Sama ada kehadiran Timbalan Pendakwa Raya mencukupi – Akta Perhubungan Perusahaan 1967, s. 51E
Masyur Mutiara Sdn Bhd lwn. PP
(Mohamad Abazafree Mohd Abbas H) [2025] 1 ILR 481 cljlaw labourlaw

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