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2025 MarsdenLR 6099

INDUSTRIAL COURT KUALA LUMPUR
TAN MAN HOW – Appellant
Versus
INNOBIM CONSULTANCY SDN BHD – Respondent
Award No: 377 Of 2025 [Case No: 20/4-1383/23]



An employer must provide just cause for terminating a probationer's employment, and failure to do so renders the dismissal unjust.

Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Dismissal of employee during probationary period - Claimant dismissed without just cause or excuse - Employer must prove just cause for dismissal - Probationer entitled to fair assessment during probation - Termination before probation period ends deemed unjust. (Paras 32, 46, 52)

(B) Burden of Proof - Employer bears the burden to demonstrate that dismissal was justified - Failure to provide reasons in termination letter limits employer's ability to justify dismissal later. (Paras 25, 39)

(C) Standard of Proof - Standard in Industrial Court is based on balance of probabilities, not beyond reasonable doubt. (Paras 26)

Facts of the case:
The Claimant was dismissed by the Company during his probation on 24 March 2023, citing performance issues. The Claimant contended the dismissal was without just cause, having been subjected to unfair treatment and not given adequate opportunity to prove his performance.

Findings of Court:
The Court found that the Company failed to establish just cause for the Claimant's dismissal, which was deemed premature and unjust.

Issues: The main issues were whether the Claimant was terminated and whether the termination was with just cause or excuse.

Ratio Decidendi: The Court ruled that the Claimant's dismissal was without just cause as the Company did not provide adequate opportunity for performance assessment during the probationary period.

Result: The Company is ordered to pay RM12,600.00 as compensation.

AWARD

Pravin Kaur Jessy:

Reference

[1] This is a reference pursuant to s 20 (3) of the Industrial Relations Act 1967 ("The Act") arising out of the alleged dismissal of Tan Man How ("Claimant") by Innobim Consultancy Sdn Bhd ("Company") on the 24 March 2023.

[2] The Director General of Industrial Relation's reference in this case requires the Court to hear and determine the Claimant's complaint of dismissal by the Company on 24 March 2023.

[3] Both the Claimant and the Company were unrepresented by legal counsel during the hearing.

[4] In reaching this decision, the Court has carefully examined and analysed the notes of proceedings, all relevant documents and the cause papers submitted in this case, including the:

(i) Statement of Case dated 2 November 2023;

(ii) Statement in Reply which is undated;

(iii) Rejoinder dated 17 December 2024;

(iv) Claimant's Bundle of Documents - CLB1;

(v) Company's Bundle of Documents - COB1-COB5;

(vi) Claimant's Witness Statement - CLWS-1;

(vii) Company's Witness Statement - COWS-1;

(viii) Claimant's Written Submission and Reply; and

(ix) Company's Written Submission.

Facts Of The Case

[5] The matter in dispute before this Court concerns the termination of the Claimant's employment midway during his probationary period by the Company on 24 March 2023.

[6] By way of a Letter of Offer - Sales Execute dated 16 December 2022, Claimant was offered employment as a Sales Executive in the Company's Sales Division commencing from 3 January 2023.

[7] Pursuant to cl 2 of the Letter of Offer, Claimant was required to undergo a six (6) months probationary period from the date he commenced employment. The said clause further stipulated that the Claimant's employment could be terminated with immediate effect during the probationary period if his performance did not meet the Company's expectations.

[8] On 3 January 2023, Claimant commenced employment with the Company.

[9] By a letter dated 24 March 2023, Claimant's services were terminated with immediate effect by the Company by reason of "With reference to your performance during your probationary period, the management have decided that your overall performance does not meet our expectations despite the opportunities give to you during this time".

Claimant's Case

[10] Claimant averred at para 2 of the Claimant's Statement of Case (hereinafter referred to as SOC) that he was dismissed by the Company on 24 March 2023 and that his dismissal was without just cause and excuse.

[11] Pursuant to para 3 of the SOC, the Claimant asserts that he commenced employment with the Company on 3 January 2023 as a Sales Executive, with a basic monthly salary of RM4,200.00. The Claimant was placed on a probationary period of six months.

[12] Claimant further pleaded that the Company deals in a tough industry of software sales where it is only a vendor among many other authorised to sell mainly software from Adobe and Autocad.

[13] Claimant pleaded at paras 5 and 6 of the SOC that he was verbally and psychologically abused by the Company's management and he never received any warnings or show cause letters before his termination.

[14] In his Rejoinder, Claimant admitted at para 10 that as a sales personnel, the main result would be the sales figures but sales cannot materialise in a vacuum and the Company would have to prove that they had provided the Claimant everything reasonable so sales can be achieved.

[15] Claimant further pleaded in paras 11-14 of the Rejoinder that he was subjected to various restrictions in doing sales, he had secured leads with huge revenue which would have materialised in time and finally that he had provided daily reports confirming the number of calls made and quotations sent out.

[16] At para 15 of the Rejoinder, Claimant pleaded that he viewed the accusations of lateness as nitpicking and an afterthought. He admitted that on many instances of lateness it was just a few minutes and it was due to the fact that he had forgotten to punch in or he could not access the punch


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