The court ruled that the claimant failed to establish an employment relationship with the company, thus precluding any claims of constructive dismissal under the Industrial Relations Act.

Reference

[1] This is a reference made under s 20(3) of the Industrial Relations Act 1967 (Act 177), arising out of the dismissal of Chen Sio Meng (hereinafter referred to as "the Claimant") by IK Plantation Services Sdn Bhd (hereinafter referred to as "the Company") on 1 October 2019.

[2] The Ministerial reference in this case required the Court to hear and determine the Claimant's complaint of dismissal by the Company on 1 October 2019.

I. Procedural History

[3] The case was initially registered in Court No 12 and mentioned on 5 February 2020, 11 March 2020, 24 August 2020, 28 August 2020 and 6 October 2020. It was thereafter transferred to this Court, ie Court No 22, and mentioned on 6 January 2021, 15 June 2021, 3 August 2021, 17 March 2022 and 19 July 2022.

[4] The trial commenced on 21 February 2023 and concluded on 22 February 2023.

II. Factual Background

[5] The Claimant commenced his employment with the Company as an Accountant vide Letter of Appointment dated 23 March 2007 with a monthly salary of RM5,000.00. At the time the Claimant considered himself as constructively dismissed, he was holding the position of Financial Controller with a monthly salary of RM15,000.00.

[6] The Claimant was only paid a salary of RM10,000.00 for the month of July 2019 instead of his actual salary of RM15,000.00.

[7] The Claimant contends that on 12 August 2019, without prior notice, Datuk Ishak Bin Ismail ("Datuk Ishak") verbally notified the Claimant that the Claimant's position as the Financial Controller ceased with immediate effect ensuing from the announcement of the Company's entity separation. Following from that, the Company did not pay the Claimant his salary for the month of August 2019.

[8] On 3 September 2019, the Claimant wrote to the Company seeking an explanation as to his employment status and also seeking for the balance salary for the month of July 2019 and the salary for the month of August 2019 to be paid. The Company however did not respond to the Claimant's letter and also did not pay the Claimant his salary for the month of September 2019.

[9] On 24 September 2019, the Claimant wrote to the Company again seeking an explanation as to his job status and also seeking for the balance salary for the month of July 2019 and the salaries for August and September 2019 to be paid. In the same letter, the Claimant also gave notice that if he did not get a reply from the Company and his full salary within 7 days from the date of the letter, he would consider himself as being constructively dismissed.

[10] The Company responded vide letter dated 24 September 2019 wherein they claimed that the Claimant was employed by PT Karya Sawit Lestari ("KSL") and as such the Claimant was asked to refer his grievances to Dr Kamaruzaman Bin Mohamath Shariff (CLW-2) and that they had no relation with Datuk Ishak. The Company did not make any payment of the Claimant's full salary as per the Claimant's request.

[11] On 1 October 2019, the Claimant sent a notice to the Company to notify that he considered himself as constructively dismissed with immediate effect.

[12] It is the Company's stand however that the Claimant was never employed with the Company and that the Company has no record of the same.

[13] The Company further contends that it is a managing agent of