The employer must demonstrate bona fide reasons for redundancy during retrenchment, and unions must act on the principles of management prerogative and compliance with statutory provisions.

Zulhelmy Hasan:

Reference

[1] This is a reference made by the Director General of Industrial Relations Malaysia dated 28 January 2022 which was received by the Industrial Court of Malaysia on 10 February 2022 pursuant to s 20(3) of the Industrial Relations Act 1967 arising out of the alleged dismissal of Yew Nin Huat (hereinafter referred to as "the Claimant") by Sanofi-Aventis (Malaysia) Sdn Bhd (hereinafter referred to as "the Company") on 15 July 2021.

[2] The dispute before this Court is the claim by Yew Nin Huat ("the Claimant") that he had been dismissed by way of the alleged redundancy from his employment without just cause or excuse by Sanofi-Aventis (Malaysia) Sdn Bhd ("the Company") on 15 July 2021. The reference by the Director General of Industrial Relations (DGIR) in this case required the Industrial Court to hear and determine the Claimant's complaint of his dismissal by the Company.

Factual Backgrounds

[3] The Claimant commenced employment with the Company on 4 April 1996 as a Medical Sales Representative based in Ipoh. His main scope of duties was selling human vaccines to private pharmacists, private clinics, private hospitals and Government hospitals at the material time. However, since 2015, Government hospitals and associates were handled by public sales team and not by the Claimant. The Claimant was covering northern states and he operated from his home in Ipoh.

[4] The Company is located in Petaling Jaya, Selangor. The nature of business of the Company is a pharmaceutical business activity in vaccination, consumer healthcare products, generics medicine, diabetes & cardiovascular, oncology, immunology and rare diseases.

[5]Vide Contract of Employment dated 26 June 2006 (at pp 78-83 of COB) due to change of the Company's title, from Aventis Farma SA (Malaysia) Sdn Bhd to Sanofi-Aventis (Malaysia) Sdn Bhd with effect from 20 March 2006, the Company confirmed his existing terms and conditions of employment as Professional Vaccines Representative with basic salary of RM2,961.00 per month.

[6] Throughout his service for more than 25 years in the course of working in the Company, the Claimant experience changes in title of position such as sales representative, professional vaccines representative, vaccine executive and the last title was a Medical Sales Executive. The Claimant also managed different customer's types from selling to private clinics only to selling to both private clinics and hospitals. The Claimant used to sell the traditional method of face to face to customers and also digital platforms.

[7] On 31 May 2021, the Company has announced the decision of the Company to restructure of business model of the Company vide an email dated 31 May 2021 (at p 13 of COB) which was sent to the Claimant and the entire sales team for a meeting to explain and discuss for restructuring process and updating on their team organization. On the same date, the Claimant was invited via email (at p 15 of COB) for one to one discussion as he was affected by the restructuring exercise that his current position as Medical Sales Executive was redundant.

[8] The Company had proposed to the Claimant that he could apply for new vacant position to avoid retrenchment as there were a few positions for Business Relationship Manager which was available and suitable to him if he wishes to continue employment with the Company in new set of organization. In response, the Claimant refused to apply for the said position, instead he wanted the separation package and to be retrenched so that he could get the retrenchment benefits. As a result of redundancy, he had to be retrenched along with other employees who were