SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2002 MarsdenLR 144

INDUSTRIAL COURT, KUALA LUMPUR
NOVA CHARM SDN BHD – Appellant
Versus
OOI HOCK HUAT – Respondent
Award No. 220 Of 2002 [Case No: 15/4-398/01]



AWARD

The parties in this case are Ooi Hock Huat (hereinafter referred to as "claimant") and Nova Charm Sdn Bhd (hereinafter referred to as "the company") on the 14 October 1998. The claimant contends that he was employed by the company as its van driver cum deliveryman on 1 February 1997 and was summarily dismissed without just cause or excuse on 4 October 1998. The company contends that the claimant was never employed as a workman or that there was a dismissal of a workman within the meaning of the Industrial Relations Act 1967. In the alternative, the company contends that if the claimant was a workman and had been dismissed, the said dismissal was with just cause or excuse. The burden of proof on the first issue and second issue lies with the claimant and the company respectively.

Section 2 of the Industrial Relations Act 1967 defines "workman" as "any person, including an apprentice employed by an employer under a contract of employment to work for hire or reward, and for the purpose of any proceedings in relation to a trade dispute includes any such person who has been dismissed, discharged or retrenched in connection with or as a consequence of that dispute or whose dismissal, discharge or retrenchment has led to that dispute". The Act defines "contract of employment" as "any agreement whether oral or in writing and whether express or implied, whereby the person agrees to employ another as a workman and that other agrees to serve his employer as a workman."

15

In the course of operating a business or other undertakings, all kinds of arrangements for the performance of work or rendition of services are entered into between various parties. These may include employment of staff for regular employment, engaging independent contractors and hiring temporary staff, casual workers and other personnel on fixed terms. The arrangements depend on the kind of services or work required to be done and the duration of the same. Parties of course negotiate the nature and terms of such arrangements according to their own needs and interests. The Industrial Relations Act 1967 protects the security of tenure of workmen engaged under a contract of service. The principle of security of tenure guarantees an employee's legitimate expectation to continue in his employment and to earn his livelihood unless his employer has just cause or excuse to terminate his services. It is enforceable by recourse to statutory remedies under the Act. It would be clear that not all persons performing work or rendering services for another becomes a workman within the meaning of the Act. The statutory right to security of tenure is guaranteed to a workman who comes within the Act and not to any other person performing work or rendering services in some capacity other than as a workman employed under a contract of service. The issue in this case simply stated is whether the claimant was employed under a contract of service (see the case of Hoh Kiang Ngan v. Mahkamah Perusahaan Malaysia & Anor[1995] 1 MELR 1, [1995] 3 MLJ 369).

In the exercise of its statutory functions of auditing the justness or otherwise of the decision to terminate the services of a workman the court should always be careful that it does not vest itself with jurisdiction to inquire into the termination of contractual arrangements for the performance of work or supply of services other than those which are contracts of service. Business entities and charitable or non-governmental organisations have the freedom to structure arrangements for the work or services requirements in the manner consistent with their organisations' need and according to their financial standing. In this regard, small enterprises or those which are making a tentative start up in their operations should not be forced ex post facto into employment relationships when the attendant facts and circumstances clearly show that in contracting for such work or services it was never intended that they were engaging workmen to be in th

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top