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2023 MarsdenLR 1595

INDUSTRIAL COURT KOTA KINABALU
CHAN KET KHEN & ANOR – Appellant
Versus
QUREX SDN BHD – Respondent


Petitioner Advocates:Mary Lee Chung Ching ,Respondent Advocate: Janice Wong Heu Fun

Judgement Key Points

Grounds of Appeal:

  • The learned trial judge erred in law and/or fact by holding that the retrenchment was justified on the basis of genuine redundancy arising from bona fide business reorganization due to sustained financial losses and operational requirements, when the evidence did not establish a genuine commercial basis or operational necessity for rendering positions surplus. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)

  • The learned trial judge erred in law and/or fact by finding that the employer discharged the burden of proof to demonstrate that the retrenchment was bona fide and not motivated by mala fides, caprice, victimization, or unfair labour practices, when the evidence showed improper motives or inadequate substantiation. (!) (!) (!) (!) (!) (!) (!)

  • The learned trial judge erred in law and/or fact by holding that there is no legal or contractual obligation to consult with or provide prior warning to employees before retrenchment, and that payment in lieu of notice suffices, thereby failing to recognize implied duties of fairness or good faith in termination processes. (!) (!) (!) (!) (!) (!) (!) (!) (!)

  • The learned trial judge erred in law and/or fact by ruling that employees exceeding the wage threshold under the relevant rules are not entitled to statutory retrenchment or termination benefits absent contractual provisions, when such entitlement arises under broader principles of equity or contract interpretation. (!) (!) (!) (!) (!)

  • The learned trial judge erred in law and/or fact by determining that the Code of Conduct for Industrial Harmony 1975 is merely non-binding guidelines and that non-compliance does not invalidate a retrenchment, overlooking its status as persuasive authority or implied term in employment relationships. (!) (!) (!) (!) (!)


Table of Content
1. dismissal reference under ira 1967 (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. claimants allege unlawful termination (Para 8 , 9 , 10)
3. court's duty to assess dismissal reasons (Para 12 , 13 , 14 , 15)
4. burden of proof lies with employer (Para 16 , 17 , 18 , 19 , 20)
5. management prerogative in business organization (Para 21 , 22 , 23 , 24 , 25)
6. details of retrenchment process (Para 26 , 27 , 28 , 29 , 30)
7. claimants' employment history and service (Para 31 , 32 , 33 , 34 , 35 , 36)
8. issues for determination (Para 39 , 40)
9. employer's right to reorganize business (Para 41 , 42 , 43 , 44 , 45)
10. company's financial position and justification (Para 46 , 47 , 48 , 49 , 50)
11. evidence of financial records (Para 51 , 52 , 53 , 54 , 55)
12. justification for closure of branches (Para 56 , 57 , 58 , 59)
13. valid reasons for termination of employment (Para 60 , 61)
14. consultation and warning not mandatory (Para 62 , 63 , 64 , 65 , 66)
15. failure to consult does not invalidate retrenchment (Para 67 , 68 , 69 , 70)
16. court's view on notice and compensation (Para 71 , 72 , 73 , 74)
17. claimants' entitlement to benefits (Para 76 , 77 , 78 , 79 , 80)
18. contractual obligatio

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