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2012 MarsdenLR 1164
COURT OF APPEAL PUTRAJAYA
EQUANT INTEGRATION SERVICES SDN BHD (IN LIQUIDATION) – Appellant
Versus
WONG WAI HUNG – Respondent
[Appeal No: W-02-1482-06-2012]
The Industrial Court's award for unfair dismissal was quashed as it did not sufficiently justify the compensation awarded despite finding genuine redundancy in the retrenchment process.
Headnote:(A) Industrial Relations Act 1967 - Code of Conduct for Industrial Harmony - Claim of unfair dismissal - Respondent successfully claimed dismissal without just cause despite finding of genuine redundancy by the appellant's company - Award by Industrial Court quashed due to procedural impropriety and excessive compensation awarded. (Paras 2, 10, 12, 13, 19, 25)
(B) Employment - Retrenchment - Requirement of consultation and early warning - Failure to comply with Code of Conduct does not invalidate a bona fide retrenchment. (Paras 8, 9, 12)
Facts of the case:
The respondent, a General Manager, was retrenched after 11 months of service under the grounds of redundancy, receiving an exit package totaling RM263,480.00. He claimed unfair dismissal, and the Industrial Court awarded him RM511,775.00 for unjust dismissal.
Findings of Court:
The Industrial Court mixed findings of genuine redundancy with an unjust dismissal award due to procedural errors and excessive compensation.
Issues: The court examined whether failure to adhere to the Code invalidated a genuine retrenchment, and whether the compensation awarded was justified.
Ratio Decidendi: Court ruled that adherence to the Code is not absolute and that genuine redundancy validated the dismissal, thus the compensation awarded was excessive without proper substantiation.
Result: Appeal allowed; the Industrial Court award was quashed.
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| 1. background of appellant's unfair dismissal appeal. (Para 1 , 2) |
[1] This is an appeal by the appellant against the decision of the High Court of Kuala Lumpur given on 18 May 2012.
[2] The respondent referred a claim of unfair dismissal to the Industrial Court, following his retrenchment from the appellant company. The Industrial Court decided in favour of the respondent vide Industrial Court Award No. 1589 of 2011 dated 1 November 2011, where the learned Chairman found that the respondent was dismissed without just cause. The appellant's application to quash the award at the High Court failed, hence this appeal.
[3] On 10 October 2012 by a unanimous decision, we allowed the appeal of the appellant with costs. We now give our reasons.
