INDUSTRIAL COURT, KUALA LUMPUR
LAM SOON (M) BHD AND CIK CHONG SIEW YOON
Award No. 34O Of 1986 [Case No. 1 : 5/4 - 12/86 (22.12.1985)]
The Claimant's services were terminated by the Company Berhad's letter (Court Exhibit CL-1) dated 14th May 1985 which reads as follows:
"LAM SOON (M) BERHAD
May 14, 1985.
Ms.Serena Chong Siew Yoon,
25, Jalan SS 24/19
Taman Megah
Petaling Jaya
Dear Ms. Serene Chong
NOTICE OF TERMINATION
This is to inform you that your service is no longer required by the Company effective June 14, 1985. The one month notice from the date of this letter is given in accordance with the Company's practice.
Therefore, it is the decision of the Company to terminate your service effective from June 14, 1985. You will be paid an equivalent of 3 months' basic salary in addition as anex gratia payment for your services with the Company.
All payments less whatever money you are owing the Company will be made upon clearance from the Income Tax Department,.
We would like to record our appreciation for your period of service with the Company.
Yours sincerely,
LAM SOON (M) BERHAD
Sgd: Mohd Noor b Mohd Othman
Personnel Manager "
The Claimant contended that this was dismissal without just cause or excuse and an unfair labour practice which should be struck down as such. She prayed for reinstatement to her former position without loss of any benefits monetary or otherwise.
The Company Berhad in reply averred that due to its reorganisation the Claimant's post as a microbiologist became redundant, that is, surplus to the requirements of the Company Berhad and her services were accordingly terminated with one month's notice. In addition she was paid anex gratia payment of three month's salary in recognition of her services with the Company Berhad. Wherefore the Com-pany Berhad prayed that the Claimant's claims be dismissed.
Briefly stated, this is the background of the Claimant's service with the Company Berhad: Lam Soon Oil & Soap Manufacturing Sdn. Bhd ("LSOSM" was in the practice of sending samples to the Chen Laboratories, where Claimant was employed, for testing. On 1st February 1982 the Claimant left her erstwhile employers to join LSOSM at a starting salary of $1,400.00 per month as its microbiologist. This was done at the invitation of its Technical Director, Encik K.L. Er (CW.1).
On 24th November 1982 (Court Exhibit CL-8) the Claimant tendered her resignation from her post in LSOSM as she had received an offer of a better-paid post from another Company. However, she decided to stay on when LSOSM raised her salary to $ 2,100.00 per month with effect from 1st January 1983 and $2,500.00 per month with effect from 1st January 1984 (Exhibit CL-9 dated 9th December 1982).
Pursuant to the restructuring of LSOSM, the principal business of LSOSM was transferred to Lam Soon (M) Berhad ("the Company Berhad") on 31st December 1984 and the Company Berhad carried on business in succession to LSOSM from 1st January 1985. The Company Berhad offered the Claimant employment in continuation on the same terms and conditions under which she was employed prior to 31st December 1984 with her period of service with LSOSM counted as continuing into the Company Berhad. This offer was accepted by the Claimant ( Exhibit CL-10 dated 24th December 1984).
On 14th June 1985 the Claimant's services with the Company Berhad came to an end by reason of (Exhibit CL-1) quoted at the beginning of this Award.
The Company Berhad produced three witnesses:
CW-1 : Encik K.L. Er who was the Technical Director and the Claimant's direct superior until 1st April 1986 when he became the General Manager of International Speciality Fats Sdn.Bhd. - a subsidiary of the Company Berhad.
CW-2 : Encik Wong Chew Yin, the Deputy Managing Director (Operations) of the Company Berhad.
CW-3 : Encik Mohd. Noor bin Mohd. Othman, the Personnel Manager of the Company Berhad.
The core of the Company Berhad's case is based on the main substance of their evidence.
CW-1 testified that he originally hired the Claimant for the microbiological control of the products of LSOSM as well as those of Ace Canning Corporat
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