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2023 MarsdenLR 487

INDUSTRIAL COURT KUALA LUMPUR
MADHANA KRISHNAN – Appellant
Versus
KTMB (CAR PARK) SDN BHD – Respondent
Award No: 130 Of 2023 [Case No: 21/4-2955/20]



Petitioner Advocates:V Rajadevan ,Respondent Advocate: Sarita Ashok Khandhar

Retrenchment by an employer due to operational closure and financial difficulties is valid when established in good faith and not contested by the employee.

Headnote:In this case regarding employment termination, the Industrial Court evaluated the justification behind the Claimant's retrenchment due to company closure resulting from substantial debt. The Court referenced the relevant laws including Section 20(1) of the Industrial Relations Act 1967. The Court found no merit in the Claimant's claims of unjust dismissal, determining that retrenchment was necessary given the economic impacts of COVID-19. The issues centered on whether the retrenchment was justified, the validity of grounds presented by the employer, and potential bad faith. The Court emphasized that retrenchment under such circumstances could be executed in good faith. The conclusion was that the retrenchment was justified, thus dismissing the Claimant's case.

Table of Content
1. summary of employment details and circumstances leading to dismissal. (Para 1 , 2 , 3)
2. the role of the court in determining justification for termination. (Para 4 , 5 , 6 , 7)
3. evaluation of retrenchment validity based on employer's reasons. (Para 8 , 9 , 10)
4. court's dismissal of the claimant's case based on established facts. (Para 25 , 26)
AWARD

Syed Noh Said Nazir @ Syed Nadzir:

Factual Background

[1] The undisputed facts of the case from the pleadings and the evidence are as follows:

a) The Claimant was offered by the Company on 19 March 2001 to work as a Cashier and the Claimant began working on 22 March 2001.

b) Over the years, the Claimant had rose in rank to Senior Cashier ('Juruwang Kanan') on 1 September 2003.

c) On 1 June 2016 the Claimant was promoted to the position of Supervisor from her position as a Senior Cashier.

d) At the time of the incident, the Claimant held the position of Supervisor with the basic salary of RM1,536.00 with RM200.00 regional allowance and RM250.00 other allowance, so a total of RM1,986.00.

e) The event that lead to the Claimant's dismissal occurred around 17-032020 whereby the Claimant was called by the Company to attend a meeting at 1400 hours at Bilik FCL, Aras 3, Stesyen Sentral Kuala Lumpur.

f) The briefing given by the Company was particularly regarding the closure of the Company's operation. The Claimant was informed that the Company will stop operating on 31 March 2020 as its operation will be taken over by Perbadanan Aset Keretapi (PAK).

g) The Claimant was offered by the Company to join Matrix Parking Solution Sdn Bhd with a salary of RM1,400.00 and RM100.00 allowances (totalling RM1,500.00 per month) with the condition that the Claimant had to resign from her current position at the Company. A letter of resignation was prepared by the Company for the Claimant to sign. The Claimant did not agree with the condition and had refused to sign the resignation letter.

h) On 31 March 2020 the Company had served the Claimant a notice of termination effective on 1 May 2020. The Claimant was given a consolation gift of RM1,000.00.

i) The Company's position is that it had to terminate all of its workers and was now in the process of closing the Company due to the Company being in debt for the amount of RM2.2 million to PAK. All of the employees together with the Claimant were given RM1,000.00 each at the time of the dismissal.

Claimant's Pleaded Case

[2] In para 3 of her Statement of Case, the Claimant pleaded that the events that led to her dismissal by the Company are as follows:

a) On 17 March 2020, the Claimant was called by the Company to attend a meeting at 1400 hours at Bilik FCL, Aras 3, Stesyen Sentral Kuala Lumpur.

b) The briefing given to the Claimant at the meeting was particularly regarding the closure of Company operations. The main objective was to obtain the Claimant's signature in a letter prepared by Company itself under the title "Surat Perletakan Jawatan".

c) The Claimant was informed that the Company operation will be closed on 31 March 2020 since its operation will be taken over by Perbadanan Aset Keretapi (PAK).

d) During the meeting, the Claimant was offered by the Company to join another Company known as Matrix Parking Solution SDN BHD but under a condition.

e) The condition required the Claimant to resign first from the Company by placing a signature in a letter prepared by the Company itself under the title "Surat Perletakan Jawatan' in order to joint Matrix Parking Solution SDN BHD.

f) The job offered by Matrix Parking Solution Sdn Bhd Was for a salary of RM1,400.00 plus RM100.00 allowance.

g) The Claimant disagreed with the condition term to place signature on the letter titled "Surat Perletakan Jawatan'

h) The Claimant was told by the Company that the offer to join Matrix Parking Solution SDN BHD will be invalid if the Claimant disagreed with the condition made by the Company as it was a mandatory condition.

i) The Claimant stood by with the decision not to pla

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