A genuine fixed term employment contract naturally ends without dismissal, and no notice is required upon expiration.

Reference

[1] This is a reference made under s 20(3) Industrial Relations Act 1967 (Act 177), arising out of the dismissal of Soe Chee Ming (hereinafter referred to as "the Claimant") by Samaiden Sdn Bhd, (hereinafter referred to as "the Company") on 11 October 2021.

[2] The reference by the Director General of Industrial Relations in this case required the Court to hear and determine the Claimant's complaint of dismissal by the Company on 11 October 2021.

I. Procedural History

[3] The Industrial Court received the letter pertaining to the reference by the Director General of Industrial Relations under s 20(3) Industrial Relations Act 1967 on 8 August 2022.

[4] The matter was fixed for mention on 5 September 2022, 21 October 2022, 2 May 2023 and 8 May 2023.

[5] The trial proceeded on 30 May 2023 and concluded on the same day.

II. Factual Background

[6] The Claimant commenced his employment with the Company vide a Fixed Term Employment Contract (at pp 3-9 of COB-1) as a Sales Manager for a fixed term period of 6 months. His last drawn salary was RM11,000.00 per month with a phone allowance of RM50.00.

[7] As the Sales Manager under the Sales and Marketing Department, the Claimant reported to one Mr Fong Yeng Foon, ie the Executive Director of the Company (COW-2).

[8] The Claimant contends that he had carried out the core fundamental sales and marketing functions of the Company during the period of his employment until he was dismissed immediately from employment without proper notice.

[9] The Company however contends that the Claimant was never dismissed from his employment on 11 October 2021 as his tenure pursuant to the Fixed Term Contract of 6 months had instead come to an end. A Notice of Employment Contract Ended dated 8 October 2021 was issued to the Claimant. Furthermore, the Executive Director of the Company had informed the Claimant that the Company had no intention to renew his employment contract.

III. The Role Of The Industrial Court

[10] In a case involving fixed term contracts, the Industrial Court has to determine:

(i) whether or not the employment contract is a genuine fixed term contract;

(ii) if the employment contract is not a genuine fixed term contract, the Court would have to determine whether there was a dismissal or not and, if so, whether it was with just cause or excuse;

(iii) if, however, the employment contract is a genuine fixed term contract, then there would be no issue of dismissal to begin with.

[11] The principle pertaining to fixed term employment contracts was laid down in the case of M Vasagam Muthusamy v. Kesatuan Pekerja-Pekerja Resorts World, Pahang & Anor 2002 MarsdenLR 779 ; 2003 MarsdenLR 1751 ; where Faiza Tamby Chik J held:

"The applicant contended that the Industrial Court had not applied the correct test in making its decision by first asking itself whether there was a dismissal and secondly that if there was a dismissal, whether the dismissal was with just cause or excuse. I am of the opinion that the Industrial Court had correctly addressed the issue in this case by determining first whether or not the contract in question was a genuine fixed term contract (see pp 3 and 4 of the said award). If the Industrial Court made a finding that it was not a genuine fixed term contract but was really a contract of employment, then only would the Industrial Court be required to ask whether there was a dismissal or not and that if so whether it was with just cause or excuse. In the