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2020 MarsdenLR 1234

INDUSTRIAL COURT KUALA LUMPUR
MANIMARAN KARUVANAN – Appellant
Versus
TAV FACILITY SOLUTION (M) SDN BHD – Respondent
Award No: 1374 Of 2020 [Case No: 21/4-226/20]



The dismissal of an employee without just cause or excuse, along with withholding owed wages, constitutes grounds for compensation and reinstatement in employment disputes.

Headnote:(A) Industrial Relations Act 1967 – Section 30 – Dismissal without just cause – Claim for unpaid salary and reinstatement following wrongful termination. The Court concluded that the dismissal was unjustified as no disciplinary action preceded it, and the employer defaulted on salary payment. (Paras 20-23)

(B)

Employment Relationship – Withholding payment constitutes a fundamental breach of contract. Compensation awarded in lieu of reinstatement without loss of seniority. (Paras 24-26)

Facts of the case:

The Claimant, employed as a Manager, was dismissed without cause and denied his salary from 1 July to 4 August 2019. He reported threats and filed a police report.

Findings of Court:

The Claimant proved that his termination was without just cause and that the Company failed to pay him owed wages.

Issues

: The Court addressed whether the Claimant was dismissed and if the dismissal was justified.

Ratio Decidendi:

The Court ruled that the employer bore the burden to prove justification for dismissal and found no such excuse presented.

Result:

Claimant awarded RM6,233.33 for unpaid salary and compensation for wrongful dismissal.

AWARD

Syed Noh Said Nazir @ Syed Nadzir:

Ex-Parte Award

[1] The Ministerial reference in this case required the Court to hear and determine the Claimant's complaint of dismissal by the Company on 4 August 2019. Hearing proceeded and concluded before Chairman of this division of Court 21 on 7 September 2020 pursuant to the instructions from YA Tuan Yang Dipertua, Industrial Court of Malaysia in order for a final award be handed down.

Factual Matrix

[2] The Claimant commenced employment with the Company on 15 June 2018 as a Manager in charge of housekeeping department with monthly basic salary of RM5,500.00 per month. The Company did not issue any letter of appointment to the Claimant and had only issued him payslips for the months of November 2018 until March 2019 (CLB, P.3-6).

[3] The circumstances leading to the Claimant's termination of service are as follows:

3.1 On 4 August 2019 at approximately 12.45 pm, the Claimant's superior ie Mr Sasi Kumarao had contacted the Claimant and informed him that his service has been terminated with immediate effect

3.2 On 5 August 2019, at approximately 12.30 pm the Claimant had contacted Mr Sasi Kumarao on his mobile no 012-3083725 to enquire about his salary from 1 July 2019 to 4 August 2019 and to remind him on other worker's salary. Instead of giving the Claimant the assurance that salaries would be paid, Mr Sasi Kumarao not just scolded the Claimant with foul languages but also threaten him.

3.3 Mr Sasi Kumarao told the Claimant that the Company will not pay his salary and that he can take up the matter to any authorities.

3.4 Subsequently, the Claimant was removed from the Company's WhatsApp Group.

3.5 The Claimant then lodged a police report on the incident on 5 August 2019.

[4] Sometime mid of August 2019, the Claimant wrote to the Company to put the Company on notice that he will take legal action on his termination of service on 4 August 2019.

Claimant's Submission

[5] The Claimant contended that the Company had breached the provision of law for refusal to pay his salary from 1 July 2019 to 4 August 2019.

[6] The Claimant averred that he was not subjected to any form of disciplinary action neither was he placed on any performance improvement plan prior to his termination on 4 August 2019.

[7] The Claimant submitted that the termination of service on 4 August 2019 was without just cause or excuse.

[8] The Claimant prayed for this Court's finding that the termination of service wrongful, void and inoperative and further an Award for reinstatement without any loss of wages, seniority and such other benefits earned or any relief which this Court deems fit and proper.

Cause Papers, Witness Statements, Bundles Of Documents And Written Submissions

[9] The following documents had been filed by the Claimant for the purpose of trial:

Cause Papers

(i) Statement of Case dated 17 August 2020 Witness Statements

(ii) Witness Statement of the Claimant, Manimaran A/L Karuvanan.

Bundles of Documents

(iii) Claimant's Bundle of Documents dated 17 August 2020.

(iv) Claimant's Bundle of Documents (Volume 2) dated 6 September 2020.

Role Of Industrial Court

[10] The role of the Industrial Court was lucidly explained by His Lordship Raja Azlan Shah CJ (Malaya) (as His Royal Highness then was) in Goon Kwee Phoy v. J & P Coats (M) Bhd, 1981 MarsdenLR 117 at page 136 (Federal Court) as follows:

"Where representations are made and are referred to the Industrial Court for enquiry, it is the duty of the Court to determine whether the termination or dismissal is with or without just cause or excuse. If the employer chooses to give a reason or excuse for the action taken by him, the duty of the Industrial Court will be to enquire whether that reason or excuse has or has not been made out. If it finds as a fact that it has not been proven, then the inevitable conclusion must be that the termination or dismissal was without just cause or excuse. The proper enquiry of the Court is the reason advanced by the employer, and that Court or the Hi


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