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2023 MarsdenLR 276

INDUSTRIAL COURT KUALA LUMPUR
KHAIRUL AMREE AHMAD SUHAIMI – Appellant
Versus
TC MANAGEMENT SERVICES CORPORATION SDN BHD – Respondent
Award No: 1066 Of 2023 [Case No: 21/4-1012/21]



Redundancy must be proven, and the employer's right to reorganize is upheld if done in good faith and necessity is established.

Headnote:This judgment concerns a redundancy claim where the claimant contests his termination by the company. The court finds that the dismissal was due to bona fide redundancy related to business reorganization in response to financial distress caused by unforeseen circumstances, specifically the Covid-19 pandemic. The court evaluated whether the grounds for dismissal were justified and concluded that the employer’s right to reorganize was exercised in good faith, adhering to statutory principles. As such, the court upheld the dismissal as lawful.

Table of Content
1. dispute about the grounds for redundancy. (Para 6 , 9 , 14)
2. burden of proof rests with the employer. (Para 25 , 26 , 27)
3. justification of redundancy based on company circumstances. (Para 38 , 43)
4. dismissal upheld due to proven bona fide redundancy. (Para 81 , 85)
AWARD

Syed Noh Said Nazir @ Syed Nadzir:

Reference

[1] This is a reference dated 17 March 2021 made under s 20(3) of the IRA 1967 ("the Act") arising out of the dismissal of Khairul Amree Ahmad Suhaimi (hereinafter referred to as "the Claimant") by TC Management Services Corporation Sdn Bhd (hereinafter referred to as "the Company") on 19 June 2020.

Salient Facts

[2] The Claimant was employed by the Company as a Senior Executive of Projects under H04 Gred based in the Property Department, Head Office with effect from 1 October 2016, was probated for 6 months and subsequently confirmed in that position on 1 April 2017 by letter dated 28 March 2017 (please refer to CLB-1 Exh CL:1).

[3] By a letter dated 1 January 2018 the Claimant was promoted to the position of Assistant Manager, Projects whereby his salary was adjusted from RM3,450.00, car allowance of RM250.00 to RM3,950.00 and monthly car allowance to RM350.00. The Claimant's last drawn salary prior to the retrenchment was RM5,125.00 with a fixed car allowance of RM350.00.

[4] The Claimant's duties and functions are as follows:

a) For Development Projects

i. Coordinate design, technical and work planning with Consultant Architects, Engineer, Quantity Surveyor and Town planner on conceptual design up to implementation stage.

ii. Liaison with local authorities and consultants for all matters regarding project submission and approval (Development Order & Building Plan), license, relevant permits, guidelines, regulation & commissioning.

iii. Conduct cost estimation, tender process and value engineering for development and construction cost.

b) For all assigned projects for central region and headquarter (HQ)

i. Responsible of overall project management including cost estimation, design stage, pre-tender, award of project, planning, controlling, implementation, execution, completion and post- tender.

ii. Liaison with local authorities and consultants for all submission and approval matters related to project (Development Order, Building Plan, Renovation Plan), license, relevant permit, inspection and CCC.

iii. To handle projects from maintenance department that exceed RM15,000.00 and above.

[5] For clarity, misconduct prior to retrenchment is not an issue; in that it is undisputed that the Claimant has worked for the Company without any complaints.

Claimant's Submission

[6] The Claimant primarily disputes the ground of his dismissal i.e. redundancy. According to the Claimant, the Company's witnesses did not show any evidence as to how the Claimant was selected in the retrenchment exercise. The Claimant maintains that he has a good track record and his job is still in existence at the time of the retrenchment; hence the retrenchment is not bona fide. The Claimant avers that it was a premeditated attempt to get rid of the Claimant under the guise of redundancy.

[7] In his submission, the Claimant submitted that the Company has not notified and no notice period was served on him prior to this dismissal. He contended that there are no proper justifications pertaining to the retrenchment wherein his job is still in existence and as such the actions of the Company have caused trauma and damaged his livelihood.

[8] In support of his case, the Claimant states that he is in charge of six (6) projects on commercial high-rise building (CLB pp 30-35) that the Company has approved with a contract agreement which is as follows:

1. TC Metropolitan City @ Segambut - Proposed Mixed Development at Lot PT 27061 & PT 26945, Jalan Segambut, Mukim Batu, Kuala Lumpur for Tetuan Tan Chong Development Sdn Bhd.

2. Proposed Multi Generation Care Development at Segambut (Phase 1), - Proposed Mixed Development for Tetuan Tan Chong Development Sd

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