Gopal Sri Ram JCA:

Having allowed this appeal and made the necessary consequential orders, we now give reasons for our decision.

Facts And Background

The appellant (claimant before the Industrial Court), is a citizen of Sri Lanka. He was employed by the respondent, a Malaysian company in Sabah. His employment was conditional upon his work permit being periodically renewed. He worked satisfactorily in Sabah for four years. His work permit expired on 30 April 1988 and further renewal could not be obtained. But the respondent did not terminate his services. Instead, the respondent, with effect from 1 May 1988, seconded him to Singapore where he continued to give corporate advice to the respondent's related companies for the remaining period of his existing contract.

On 11 November 1989 the respondent wrote to the appellant requesting him to resign because he had allegedly performed unsatisfactory work. The appellant, considering himself to have been wrongfully dismissed, complained to the Director-General of Industrial Relations who, having unsuccessfully attempted a reconciliation, referred the dispute to the Minister who then referred it to the Industrial Court under s. 2