[1] The background facts to this dispute are not contentious and we are grateful to counsel of both parties for having highlighted them in their respective written submissions. Suffice that we adopt those relevant facts as found in the appellants written submission, with some editing:

1.1 The respondent was an employee of Affin-ACF Finance Berhad ("Affin-ACF") a company within the Affin Group of Companies.

1.2 In March 2005, all the employees of Affin-ACF including the respondent, were informed by its Chief Executive Officer in respect of an impending change of ownership of Affin-ACF wherein the appellant was to take over the business of Affin-ACF in which it will integrate with the appellant in April 2005, ie a merger exercise was in the offing.

1.3 On 26 May 2005, pursuant to the Business Transfer Agreement between Affin-ACF and the appellant, and on their joint application, a Vesting Order was obtained from the High Court, transferring all of the formers assets and liabilities to the latter. The effective date of the vesting was on 1 June 2005.

1.4 Affin-ACF then informed the respondent of the impending merger as a result of which the respondents employment with Affin-ACF would ceas