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2015 MarsdenLR 2567

INDUSTRIAL COURT KUALA LUMPUR
LOH POH IM – Appellant
Versus
MINETECH RESOURCES BERHAD – Respondent
Award No: 1399 Of 2015 [Case No: 15/4-566/13]



Constructive dismissal determined by contract tests, with emphasis on employer's prerogative in management restructuring.

Headnote:Statute Analysis: The judgment interprets the principles within the Industrial Relations Act 1967 regarding constructive dismissal. Facts: The Claimant alleged constructive dismissal after being reinstated as Group COO, following a settlement agreement.

Findings of Court:
The court emphasized that the determination of constructive dismissal relies on contract tests as affirmed by previous cases.

Issues: The court framed the question whether the claimant proved constructive dismissal under the contract test.

Ratio Decidendi: The court underscored that without breach of fundamental contract terms, the claim must fall. The ruling emphasized the employer's prerogative in operational changes when executed in good faith.

Result: The Claimants claim is accordingly dismissed.

Table of Content
1. claim of constructive dismissal based on alleged employer actions. (Para 1 , 1 , 4 , 5 , 6)
2. principles establishing the contract test for constructive dismissal. (Para 15 , 16 , 17)
3. court's determination of employer's prerogative in restructuring. (Para 20 , 21)

[1] The Claimant commenced employment with the Company on 4 April 2005 as the Group Financial Controller. As the Group Financial Controller her duties, among others, were:

(a) to take charge and oversee the entire operations of Finance, Accounts and Human Resource;

(b) to provide strategic and financial advice;

(c) to manage the financial affairs of the Company;

(d) to prepare feasibility studies on business proposals; and

(e) to advise the management on the viability of all the Companys investments.

[2] The Company had by its letter dated 28 June 2011 promoted the Claimant to the position of Acting Group Chief Operating Officer of the company with effect from 1 July 2011. In the Job Description for the position of Acting Group Chief Operating Officer, her major function areas were:

1. To oversee the day to day operations and functions of the Group including quarry, premix & bituminous production, contract works, purchasing and inventory control, Finance and accounts, IT, human resources and admin. Monitors the daily operation of the Group and reports them directly to the Executive Vice-Chairman and Executive Director.

2. Provide financial, management and other regular reporting, financial planning, budgetary controls, statutory reporting, PLCs compliance, taxation, treasury, credit and internal control etc. Oversee, lead & direct strategically all area of HR, IT, Administration and Corporate functions for the Group.

3. Monitor and manage Corporate Business Plan and future direction for the Group, monitor and manage resource planning, budgets and business plan, allocations for growth and profit.

4. Provides direction and structure for operating units, monitors and resolves issues regarding various aspects of the Groups operations.

5. To ensure the system-wide implementation of company policies and procedures and find ways to improve them.

[3] Part B of the aforesaid Job Description spelt out her Principal Accountabilities/Major Activities/Scope And Nature of Work:

1. Handle high-level administration, involved with day-to-day operations including financial and management control.

2. To lead and to act as agents for organization. Give suggestions and advise management for making key changes in planning of various issues and business decisions.

3. Conduct regular meetings and sessions to make all department heads ensure that works are completed as per the priorities of the set tasks. Manage monthly management meeting and performance reviews of Key Performance Indicators.

4. Vet through and ensure all key business contracts and agreements are in the best interest of the Group.

5. In consultation with the Executive Vice-Chairman, Group Executive Director, to act as corporate representative with shareholders or business partners of the Group, media and communication liaison for the Group.

6. Update Board of Directors and EXCO on the business and operations of the Group, keep them informed of how the company is doing. Follow up with the matters assigned by the Board and any of its committee eg, suggestions, ideas or special corporate projects.

7. Interacts broadly across an organization. Provide support and advice to the EDs/COOs/GMs in strategic planning and overall business goals relating to cost, sales, quality and production issues.

8. Perform other additional duties as and when required and specified by Group Executive Director and Executive Vice Chairman.

[4] Following certain events, the Claimant had by her letter dated 10 April 2012 claimed that she was constructively dismissed by the Company.

[5] The Claimant made representation to the Industrial Relations Department under s 20 of the Industrial Relations Act 1967 . Following conciliation proceedings the parties reac

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