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2024 MarsdenLR 810

INDUSTRIAL COURT KUALA LUMPUR
RAJA GURU MUNIANDY – Appellant
Versus
MASZMA MARKETING SDN BHD – Respondent
Award No: 2 of 2024 [Case No: 22/4-1025/22]



Petitioner Advocates:Sivananthan Arumugam ,Respondent Advocate: Shahir Tahir,Kavyaasrini S Mahendran

The absence of a formal employment contract and statutory contributions indicates that the Claimant was not an employee under the Industrial Relations Act 1967, leading to the dismissal of his wrongful termination claim.

Headnote:(A) Industrial Relations Act 1967 – Section 20(3) – Dismissal of employee – Claimant contended he was wrongfully dismissed after 27 years of service without a formal employment contract – Company argued Claimant was never an employee due to lack of contract and payments made to family members – Court held that Claimant failed to establish employment status and dismissed the claim. (Paras 1, 32, 46)

(B) Employment Status – Determination of whether an individual is a workman under the Act depends on the existence of a contract of service – The absence of a written contract, EPF, and SOCSO contributions indicates an independent contractor relationship rather than employment. (Paras 33, 41, 46)

Facts of the case: The Claimant worked for the Company from February 1994 until his dismissal on 16 August 2021, claiming wrongful termination without a formal employment contract. The Company contended that the Claimant was never an employee due to his status as an undischarged bankrupt and the nature of payments made.

Findings of Court: The Court found that the Claimant did not meet the definition of a workman under the Industrial Relations Act due to the absence of a contract of employment and other employment benefits.

Issues: The main issues were whether the Claimant was a workman under the Act and whether the dismissal was with or without just cause.

Ratio Decidendi: The Court ruled that the Claimant failed to establish an employment relationship, emphasizing the importance of a written contract and statutory contributions in determining employment status.

Result: Claim dismissed.

AWARD

Paramalingam J Doraisamy:

Reference

[1] This is a reference made under s 20(3) of the Industrial Relations Act 1967 (Act 177), arising out of the dismissal of Raja Guru a/l Muniandy (hereinafter referred to as "the Claimant") by Maszma Marketing Sdn Bhd (hereinafter referred to as "the Company") on 16 August 2021.

[2] The reference by the Director General of Industrial Relations ("DGIR") in this case required the Court to hear and determine the Claimant's complaint of dismissal by the Company on 16 August 2021.

I. Procedural History

[3] The Court received the letter pertaining to the DGIR's reference under s 20(3) of the Industrial Relations Act 1967 on 16 August 2021.

[4] The matter was fixed for mention on 14 July 2022, 1 September 2022, 14 October 2022, 21 November 2022, 11 January 2023, 2 May 2023 and 30 May 2023.

[5] The trial was conducted on 17 August 2023.

[6] Directions were given to both parties by the Court for the filing of their respective written submissions. The Company filed its written submissions on 27 September 2023. However, the Claimant failed to file his submissions within the time period given. The matter was called up for mention on 18 October 2023 for parties, and in particular the Claimant, to update the Court on the filing of their written submissions. Both the Claimant and his Representative were absent on this mention date. A final extension was given by the Court to the Claimant to file his written submissions on or before 25 October 2023. Yet again, no written submission was forthcoming from the Claimant or his Representative. The Court attempted to contact the Claimant's Representative, upon which finally on 31 October 2023 the Claimant's Representative informed the Court (Encl No 64) that he was not well and that there will be no written submissions filed on behalf of the Claimant. In such circumstances, the Court proceeded to write and hand down this Award.

II. Parties' Position On The Merits

(a) The Claimant

[7] The Claimant started his employment with the Company from February 1994 as a QC Manager with a monthly salary of RM1,200.00. However, there was no letter of appointment given by the Company to the Claimant.

[8] The Claimant worked with the Company from February 1994 to 16 August 2021 for 27 years and 6 months. His last position was as a QC Manager and his last drawn salary being RM2,000.00 per month.

[9] Pursuant to a medical report issued by the National Heart Institute ("UN"), the Claimant was recommended to carry out only light duties due to his heart problem. The Claimant's boss to whom he reports to gave the Claimant duties in the office and to follow his boss in the course of his duties.

[10] The Claimant contends that from July 2021, the boss' son took over as a result of the boss' medical problem.

[11] Vide letter dated 18 May 2021, the Claimant was issued with a warning letter listing out 4 issues in respect of work performance and attitude. The Claimant verbally objected to the issuance of the warning letter as no prior opportunity was given to the Claimant to provide explanation on the highlighted issues.

[12] Vide letter dated 17 August 2021, the Company issued a termination letter effectively terminating the Claimant's service from 17 August 2021, citing 3 reasons for the said termination. He was also requested to return the Company's car, handphone and sim cards as well as the Sg, Rasah keys. The Claimant was paid 2 weeks' severance pay.

(b) The Company

[13] It is the Company's contention that the Claimant was never an employee of the Company. There is no contract of employment entered between the Claimant and the Company due to the fact that the Claimant is an undischarged bankrupt.

[14] In fact, it was one of the Company's directors, ie En Mohamed Amin Bin P Mohamad Abd Razak ("En Amin") who had personally asked the Claimant to work with him, which the Claimant duly accepted. This was done by En Amin purely to assist the Claimant and his family as he was a bankrupt and had no st

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