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2019 MarsdenLR 2645

INDUSTRIAL COURT KUALA LUMPUR
MAH PEI YONG – Appellant
Versus
RI-YAZ HOTELS & RESORTS INC – Respondent
Award No: 901 Of 2019 [Case No: 19/4-906/18]



Petitioner Advocates:Tan Yang Qian ,Respondent Advocate: Harikannan Ragavan,Amanda Loh

The dismissal must establish just cause for termination; mere refusal of ambiguous relocation requests does not constitute insubordination.

Headnote:The case concerns a dismissal under the Industrial Relations Act 1967. The Claimant, an employee, was terminated for insubordination and insolent behavior after refusing a relocation request. The court found that the dismissal lacked just cause and order compensation instead of reinstatement.

Table of Content
1. dismissal circumstances are outlined. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. court's role in assessing dismissal. (Para 10 , 11 , 12 , 13)
3. court's role in dismissal evaluations. (Para 19)
4. clarification on nature of insubordination. (Para 20 , 21 , 22 , 23)
5. assessment of employee's misconduct. (Para 24 , 25 , 26 , 27)
6. final ruling and compensation awarded. (Para 30 , 31 , 32 , 33 , 34 , 35 , 38)
7. financial relief ordered for the claimant. (Para 36)
A. Reference

[1] This is a reference from The Honourable Minister of Human Resources, Malaysia to the Industrial Court of Malaysia under s 20(3) of the Industrial Relations Act 1967 in respect of the dismissal of Mah Pei Yong ("the Claimant") by her employer, Ri-Yaz Hotels & Resorts Inc. ("the Company") on 05 July 2017.

B. Facts

[2] The Company is principally involved in managing and operating hotels and resorts in Malaysia and internationally.

[3] The Claimant commenced employment with the Company on 19 October 2015 as a Corporate Revenue Manager pursuant to a letter of employment dated 26 August 2015.

[4] When the Claimant joined the Company, she was stationed at the Company's office in Sri Hartamas. After approximately 3 months later, the Claimant was seconded to Dashbox Hotel in Cyberjaya. The Claimant was required to report from time to time to the Group Chief Executive Officer, Dato' Shaheen Shah at the Company's office in Sri Hartamas. He was the Company's 1st witness in the trial of this matter ("COW1").

[5] By a letter dated 09 December 2016, the Claimant was promoted as the Company's Director of Revenue Corporate with effect from 01 January 2017. Shortly after her promotion, the Claimant was instructed to return to the Company's office in Sri Hartamas which she did so and she was stationed at the 2nd floor.

[6] On or about July 2017, the Company had requested the Claimant to move to the 3rd Floor to be closer to the newly promoted Chief Operating Officer, Mr Andreas Rud, who was her immediate superior but she informed the Company of her refusal to do so.

[7] By a letter dated 05 July 2017, the Company terminated the Claimant's employment with the Company with immediate effect. The relevant parts of the aforesaid letter are reproduced herein below as follows:

"Dear Mah, Nicole,

Dismissal From Employment

-------------------------------------------------------------------------------------

You are hereby dismissed from employment with Ri-Yaz Hotels and Resorts Inc with immediate effect on the following grounds;

a) Insubordination - when you refused to obey an instruction from our Group Managing Director, and when you insisted on the instruction to be made out in writing and when you found it not necessary to see the Group Director, Human Capital when called upon for a second discussion with you. Your behavior constitute an act of defiance and challenge authority of your superiors (as detailed in items 1, 2 and 3 - p 2),

b) Insolent behavior - during the conversation with our Group Managing Director in the presence of a senior official of the Company, Vice President of Corporate Affairs and causing embarrassment to our Group Managing Director (as detailed in item 1 - p 2)

under the terms and conditions stipulated in your Letter of Employment dated 26 August 2015,

i) Page 2, Sub section - During the continue of your employment, para (a) which states that, "You shall comply with all the instructions and directions given by the Company and faithfully observe all rules and regulations, procedures, practices and arrangement lay down by the Company',

and

ii) Page 5, Sub section - Conduct, first paragraph which states that, 'You have to comply with all instructions and directions given by the Company and faithfully observe all rules and regulations, procedures, practices and arrangement of the Company'

over the incident and conversations held on 03 July 2017, 4 July 2017 and 5 July 2017 as detailed below;

1) You had on Monday, 3 July 2017 on or about 3.00 pm at the Corporate Of

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