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2023 MarsdenLR 976

INDUSTRIAL COURT KUALA LUMPUR
DAVID GERARD MOK CHEE KEONG – Appellant
Versus
DK-MY PROPERTIES SDN BHD – Respondent
Award No: 1499 Of 2023 [Case No: 21/4-2813/20]



Petitioner Advocates:Dinesh Nandrajog,Wong Shu Min ,Respondent Advocate: Datuk Manpal Singh,Siow Pey Yiaw

An employer must provide warnings and opportunities for improvement before terminating a probationary employee for poor performance; dismissal without just cause or procedural fairness is unjust.

Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Employment termination - Claimant, a probationary employee, was dismissed without just cause or excuse. The employer failed to provide prior warnings regarding performance issues. Court emphasized that dismissal must not be arbitrary and must follow procedural fairness. (Paras 39, 40, 41)

(B) Probationary employment - An employer has discretion to terminate a probationer but must exercise this discretion bona fide and not capriciously. A probationer has the same rights as a confirmed employee and cannot be dismissed without just cause. (Paras 22, 23, 36)

Facts of the case:
The Claimant was employed as Chief Financial Officer on probation and received a termination notice without prior performance warnings. He filed a complaint leading to this judgment.

Findings of Court:
The Court found the dismissal arbitrary and without just cause, awarding backwages of RM96,000.

Issues: Whether the termination of the Claimant was justified given the lack of prior warnings regarding performance.

Ratio Decidendi: The Court ruled that the employer's failure to notify the Claimant of performance issues before termination rendered the dismissal unjustified.

Result: Claimant awarded RM96,000 in backwages.

Table of Content
1. employment contract and notice of termination. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. company's justification for termination. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
3. burden of proof and standard of proof. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
4. court's evaluation of termination validity. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38)
5. termination was arbitrary and unjust. (Para 39 , 40)
6. award of backwages as remedy. (Para 41 , 42 , 43 , 44)
Syed Noh Said Nazir @ Syed Nadzir:

Reference

[1] This is a reference made under s 20(3) of the IRA 1967 ("the Act") arising out of the dismissal of DAVID GERARD MOK CHEE KEONG (hereinafter referred to as "the Claimant") by DK-MY PROPERTIES SDN BHD (hereinafter referred to as "the Company") on 16 June 2020.

Factual Matrix

[2] By a Letter of Appointment dated 6 September 2019, the Claimant was offered an employment with the Company with effect from 2 December 2019 as the Chief Financial Officer, reporting to the Managing Director.

[3] The Letter of Employment inter-alia, stipulated that the Claimant was entitled to the following remunerations:

Basic salary: RM24,000.00 per month

Car allowance: RM2,000.00

Petrol allowance: RM400.00

Telephone allowance: RM100.00

[4] It is also provided that the claimant would be placed on a probation for a period of six (6) months from the commencement date of the employment, after which the Company may extend, terminate or confirm the claimant's employment, all of which must be informed to the claimant in writing, at the discretion of the Company and that unless the claimant is informed in writing, he will continue to serve as a probationer.

Brief Facts/Chronology Of Events

[5] 18 March 2020: the first day of the Movement Control Order (MCO), the Claimant received a Notice of Termination dated 17 March 2020 from the Company informing the Claimant that he is being given 3 months' notice for the termination of his employment with the Company and that his last day of service would be on 16 June 2020 (see p 11 of CLB-1).

[6] 9 May 2020: Due to the Movement Control Order, the Company was closed until 3 May 2020 and it was only reopened on 4 May 2020. Thereafter during the week, the Claimant approached the Chief Executive Officer, Mr Khoo Thian Shyang, to inquire regarding the Notice of Termination dated 17 March 2020.

[7] 2 June 2020: Since there was no response from the Chief Executive Officer or the Company, the Claimant then wrote a letter dated 2 June 2020 to the Company to seek for an explanation on how the Claimant's performance has not met the Company's expectation, especially since the Claimant had not received any notices or warnings from the Company regarding his performance before the issuance of the Notice of Termination (see p 12 of CLB-1). The Company, however, failed to reply to the Claimant's letter dated 2 June 2020 or provide any explanation.

[8] 15 June 2020: Nevertheless, the Claimant attended a meeting with the CEO's, Mr Khoo Thian Shyang, MD's PA Mr Tham Yau Keong and a personnel from the Company's Human Resources Department, Mr Vanishiya Nair, to discuss on the outstanding tasks and Company's belongings that are to be handed over and returned to the Company on the Claimant's last day.

[9] 16 June 2020: Thereafter, the Claimant handed over all the outstanding tasks and Company's belongings that were in the Claimant's possession to the respective persons in charge, receipt of the same was also acknowledged in the Handover List prepared by the Claimant (see p 13 of CLB-1). Dissatisfied with his termination by the Company, the Claimant filed a complaint to the Director General of Industrial Relations where the complaint was ultimately referred to the Industrial Court.

Company's Submissions

[10] The company avers and states that apart from the fact that the Notice of Termination issued by the Company and received by the Claimant on the 18 March 2020 the Claimant had attended a meeting with the Chief Execut

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