[1] This case is a reference by the Honourable Minister of Human Resources under s 20(3) of the Industrial Relations Act 1967 in relation to the dismissal of the Claimant by the Company from his service with the Company as Sales Manager on 12 August 2006.

[2] The Claimant was appointed as Sales Manager with the Company with effect from 1 October 2004 and was confirmed in his position on 1 April 2005. The Claimant was paid RM7,500.00 as basic salary with a fixed car allowance of RM1,000.00, sales allowance of RM500.00 and handphone allowance of RM120.00 per month.

[3] According to the Claimant's evidence, on 12 August 2006 he was called by COW-1 the Director of the Company and was questioned whether he has registered a new company. The Claimant informed COW-1 that his wife was in the process of registering a new company and COW-1 was displeased. COW-1 then took out a pre-prepared resignation letter and compelled the Claimant to resign i