Back
2025 MarsdenLR 2084
HIGH COURT SABAH & SARAWAK KUCHING
UNIVERSAL CABEL (SARAWAK) SDN BHD – Appellant
Versus
WILFRED TONY & ORS – Respondent
[Civil Appeal No: KCH-16-3-3/2024]
The court affirmed that employers must comply with statutory notice requirements for termination; failure to do so renders the termination unlawful, regardless of financial distress.
Headnote:(A) Labour Ordinance (Sarawak Cap 76) - Section 2 - Labour (Termination And Lay-Off Benefits) (Sarawak) Rules 2008 - Termination of employment - Employees terminated without proper notice - Labour Court awarded termination benefits to employees, which was upheld by the High Court - The Appellant failed to comply with statutory notice requirements under Section 12 of the Labour Ordinance, leading to unlawful termination claims. (Paras 11, 12, 52, 71)
(B) Employment Law - Definition of Employee and Employer - The Labour Court determined that the Respondents were employees under the Labour Ordinance, and the Appellant was their employer, thus entitled to termination benefits. (Paras 12, 49)
(C) Appeal - The Appellant's claims of financial distress and reliance on Practice Note 17 (PN17) were rejected, as the Appellant did not demonstrate that the PN17 status applied to them. (Paras 36, 67)
Facts of the case:
The Respondents, employees of the Appellant, were terminated without proper notice, leading to claims for termination benefits. The Labour Court ruled in favor of the Respondents, awarding them benefits based on their length of service.
Findings of Court:
The High Court upheld the Labour Court's decision, affirming that the Appellant failed to provide the legally required notice of termination.
Issues: The main issues included whether the Respondents were employees under the Labour Ordinance and whether the Appellant was liable to pay termination benefits.
Ratio Decidendi: The court found that the Appellant did not comply with statutory notice requirements, rendering the terminations unlawful, and that the financial status of the Appellant did not exempt them from these obligations.
Result: Appeals dismissed, with costs awarded to each Respondent.
JUDGMENT
Introduction
[1] The 28 Respondents, who were employees of the Appellant at the time, had filed a formal complaint with the Department of Labour Sarawak against the Appellant, Universal Cable (Sarawak) Sdn Bhd (UCSB), following their termination without the payment of any termination benefits.
[2] The Labour Court allowed the claims of all the Respondents and entered judgment against the Appellant.
[3] The Appellant appealed the Labour Court 's decision to the High Court , and the appeals were registered under the following case numbers:
(a) Civil appeal No KCH-16-3-3/2024 - Wilfred anak Tony & 2 others;
(b) Civil appeal No KCH-16-4-3/2024 - Nikson anak Jimbey & 4 others;
(c) Civil appeal No KCH-16-5-3/2024 - Gelan anak Asun & 4 others;
(d) Civil appeal No KCH-16-6-3/2024 - Roding anak Ridi @ Lidi & 4 others
(e) Civil appeal No KCH-16-7-3/2024 - Hamri bin Sejali & 4 others;
(f) Civil appeal No KCH-16-8-3/2024 - Tracy anak Saga;
(g) Civil appeal No KCH-16-9-3/2024 - Haris bin Sa'adi & 3 others.
[4] The above appeals were consolidated and heard together in High Court 2, Kuching, as they involved similar issues. After perusing the Records of Appeal and considering the submissions from the counsels for both the Appellant and the Respondents, I dismissed the appeals and upheld the decision and awards of the Labour Court in all cases.
[5] Dissatisfied with my decision, the Appellant filed its Notices of Appeal to the Court of Appeal.
[6] Below are the grounds for my decision in respect of all the said seven appeals. This ground is for all the appeals.
Brief Background Facts
[7] All the Respondents (claimants in the Labour Court ) were employees of the Appellant who were terminated by the Appellant. Following their termination, a total of twenty-eight (28) out of thirty-two (32) retrenched employees filed formal complaints with the Labour Department against the Appellant, leading to the subsequent cases being filed in the Labour Court as follows:
(a) Labour Case No KBR/31301/2023/0534
1. Wilfred Anak Tony (WN. KP. 690503-13-5945)
2. Molina Awi (WN. KP. 790515-13-5094)
3. Panuk Anak Rakub (WN. KP. 740110-13-5250)
(b) Labour Case No KBR/31301/2023/0536
1. Nikson Anak Jimbey (WN. KP. 690503-13-5945)
2. Lawrence Anak Panya (WN. KP. 701205-13-5331)
3. Siew Mee Anak Rais (WN. KP. 730329-13-5678)
4. Rolan Ba Anak Barat (WN. KP. 861202-13-5195)
5. Benson Anak Bago (WN. KP. 820315-13-5537)
(c) Labour Case No KBR/31301/2023/0537
1. Roding Anak Ridi @ Lidi (WN. KP. 850821-13-5107)
2. Marcus Anak Tony (WN. KP. 841023-13-5749)
3. Collin Frankly Anak Micheal (WN. KP. 860203-13-5707)
4. Charles Hittler Anak Horison (WN. KP. 920116-13-5145)
5. Sanik Anak Sait (WN. KP. 840816-13-6229)
(d) Labour Case No KBR/31301/2023/0538
1. Gelan Anak Asun (WN. KP. 690125-13-5293)
2. Leonard Anak Manchan (WN. KP. 781016-13-5343)
3. Patricia Anak Boi (WN. KP. 711029-13-5226)
4. Bajek Anak Sigai (WN. KP. 650625-13-5082)
5. Connel Anak Bakat (WN. KP. 710603-13-5163)
(e) Labour Case No KBR/31301/2023/0539
1. Haris Bin Sa'adi (WN. KP. 690123-13-5433)
2. Freddy Anak Sasar (WN. KP. 910806-13-5311)
3. Freddy Anak Kenest (WN. KP. 771127-13-5339)
4. Ronoregen Anak Suya (WN. KP. 810102-
(f) Labour Case No KBR/31301/2023/0540
1. Hamri Bin Sejali (WN. KP. 680502-13-5039)
2. Robin Anak Banteng (WN. KP. 701108-13-5663
3. Kenot Anak Nisir (WN. KP. 670529-13-5152)
4. Carolyn Dasor Anak Mongi (WN. KP. 710531-13-5278)
5. David Anak Agok (WN. KP. 700910-13-5359)
(g) Labour Case No KBR/31301/2023/0542
1. Tracy Ak Saga (WN. KP. 851228-13-5282)
[8] The claims in the Labour Court were heard before different Labour Officers and the Awards are as follows:
(a) Labour Case No KBR/31301/2023/0534
Labour Officer: Mohd Azri bin Suhaimi (Assistant Director)
Award: RM66,001.11
Dated: 6 March 2024
(b) Labour Case No KBR/31301/2023/0536
Labour Officer: Mohd Azri bin Suhaimi (Assistant Director)
Award: RM184,963.22
Dated: 6 March 2024
(c) Labour Case No KBR/31301/2023/0537
Labour Officer: Asmarina binti Othman (D
