Constructive dismissal arises when an employer's behavior breaches fundamental employment terms, compelling the employee to resign.

[1] This appeal is directed against the decision of the High Court dated 15 March 2016 dismissing the appellants' application for judicial review to quash the award made by the Industrial Court vide Award No: 1120 of 2014 which was handed down on 30 September 2014. In the terms of the award, the Industrial Court found that the 1st respondent's dismissal was without just cause or excuse.

Backgrounds Facts

[2] By and large, the facts in this instant appeal were in common ground. Such facts included the following:

(a) The 1st respondent was employed by Southern Investment Bank Berhad ("SIBB") (formerly known as "Perdana Merchant Bankers Berhad") in 1994. The 1st respondent was subsequently promoted to be the Vice President in 1995, Senior Vice President and Acting Chief Executive Officer ("CEO") in addition to his position as Director, Head of Capital Market Department, in 1998.

(b) On 1 March 2005, one Goh Ching Yin ("Mr Goh") was appointed as a new CEO in SIBB.

(c) On 26 May 2005, a meeting was convened between Mr Goh and the 1st respondent to discuss the 1st respondent's future in SIBB. During the meeting, Mr Goh conveyed the order given by Tan Sri Tan Teong Hean for the 1st respondent to leave the appellants' bank. Mr Goh also informed the 1st appellant that if he resigned voluntarily in writing, he will be paid the bonus and salary increment which was due to be paid soon.

(d) The 1st respondent was shocked and asked for reasons why he was told to resign after all his years of service and contribution to the appellants' bank.

(e) On 1 June 2005, the 1st respondent wrote a letter to SIBB and placed on record the events which had transpired during the meeting between Mr Goh and him on 16 May 2015 and stated that he had refused to resign from SIBB as requested. There was no reply from the appellants.

(f) On 12 July 2005, the 1st respondent wrote another letter to SIBB. In the said letter, the 1st respondent had expressly stated that he considered himself constructively dismissed with effect from the date of the letter, ie 12 July 2005. In the same breath, the 1st respondent gave the 1st appellant three months' notice of his resignation as required by his contract of employment.

(g) The 1st appellant viewed this letter as a voluntary resignation by the 1st respondent and responded to the resignation accordingly vide a letter dated 7 October 2015 in which the appellant notified the 1st respondent that his last working day is calculated to be on 11 October 2005 - three months from 12 July 2005.

(h) While the 1st respondent served the three months' notice period, the 1st respondent continued to enjoy his monthly salary along with other benefits accorded to him under his employment contracts. His last drawn salary was RM18,830.00.

(i) The dispute between 1st appellant and the 1st respondent was referred to the Industrial Court ("the 2nd respondent") for adjudication. As alluded to earlier, the Industrial Court found that the 1st respondent's dismissal was without just cause or excuse.

(j) Aggrieved by the 2nd respondent's award, the appellants then filed their application for judicial review to quash the award issued by the Industrial Court. On 15 March 2016, the High Court dismissed the appellants' application. Hence, the appellants appealed to this Court.

Issue

[3] Before us, the sole issue for determination is whether the 1st respondent had resigned voluntarily from this employment or he was constructively dismissed.

Findings Of The High Court

[4] The learned High Court Judge's reasoning