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2023 MarsdenLR 1605

HIGH COURT MALAYA KUALA LUMPUR
KOOL FM RADIO SDN BHD – Appellant
Versus
MAHKAMAH PERUSAHAAN MALAYSIA & ANOR – Respondent
[Judicial Review Application No: WA-25-186-06/2020]



Petitioner Advocates:T Thavalingam,Farah Dini Zaini ,Respondent Advocate: S Muhendaran,Chong Wan Loo

The court ruled that the relationship between the applicant and the 2nd respondent was that of an independent contractor, not employer-employee, due to the clear terms of the Independent Contractor Agreement.

Headnote:(A) Industrial Relations Act 1967 - Section 20 - Judicial Review - Application for Certiorari filed to quash Industrial Court's decision regarding unfair dismissal - The Court found that the Industrial Court erred in determining the relationship between the Applicant and the 2nd Respondent as employer-employee, instead of independent contractor as per the Independent Contractor Agreement dated 27 December 2017. (Paras 3, 14, 31, 46)

(B) Judicial Review - Scope and grounds - The Court may review decisions on grounds of illegality, irrationality, and procedural impropriety, but not every case is amenable to such scrutiny. (Paras 7, 8, 10)

Facts of the case:
The Applicant, a media company, terminated the 2nd Respondent's Independent Contractor Agreement citing non-compliance with service requirements. The Industrial Court ruled the dismissal was unfair and ordered compensation.

Findings of Court:
The Industrial Court's decision was flawed due to failure to recognize the contractual nature of the relationship.

Issues: The main issues included whether the relationship was that of employer-employee or independent contractor and if the Industrial Court made errors in its findings.

Ratio Decidendi: The Court determined that the Independent Contractor Agreement was clear in its terms, establishing the 2nd Respondent as an independent contractor, and the Industrial Court's failure to recognize this constituted an error of law.

Result: The Industrial Court's decision is set aside; the Applicant's application for judicial review is allowed.

Table of Content
1. judicial review application filed. (Para 1 , 2 , 3 , 4)
2. background facts of the case. (Para 5)
3. applicant's grounds for judicial review. (Para 6)
4. judicial review grounds: procedural impropriety. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13)
5. independent contractor vs employee distinction. (Para 14 , 15 , 16 , 17 , 18 , 19)
6. acceptance of independent contractor agreement. (Para 20 , 21 , 22 , 23 , 24)
7. contractual obligations and interpretations. (Para 25 , 26 , 27 , 28)
8. enforcement of clear contractual terms. (Para 29 , 30 , 31)
9. control test in independent contractor agreements. (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42)
10. supersession of previous agreements. (Para 43 , 44 , 45)
11. court's decision and order. (Para 46 , 47)
Ahmad Kamal Md Shahid J:

Introduction

[1] The Applicant filed an application for judicial review (encl 5) under O 53 of the Rules of Court 2012 ( ROC ).

[2] The Applicant was granted leave to apply for judicial review against the Respondents to seek the following reliefs:

2.1 suatu Perintah Certiorari untuk beralih ke Mahkamah Yang Mulai ini untuk tujuan membatalkan seluruh keputusan Awad Mahkamah Perusahaan No 396 Tahun 2020 [[2020] MELRU 396] bertarikh 14 Februari 2020 (Awad tersebut) oleh Mahkamah Perusahaan Malaysia (Responden Pertama) di sini (Perintah Certiorari tersebut);

2.2 bahawa Pemohon diberikan lanjutan masa di bawah Aturan 53 Kaedah 3(7) Kaedah-Kaedah Mahkamah 2012 untuk memohon Perintah Certiorari tersebut mengambilkira Perintah Kawalan Pergerakan (dan kesemua lanjutan yang berkenaan) yang berkuatkuasa 18 Mac 2020 di mana Pemohon tidak mempunyai akses kepada dokumen-dokumen untuk membolehkannya memfailkan kertas-kertas kausa bagi memohon bagi Perintah Certiorari tersebut;

2.3 suatu perintah bahawa semua prosiding selanjutnya untuk menguatkuasakan atau melaksanakan keputusan Responden Pertama dalam Awad tersebut digantung sehingga pelupusan muktamad Permohonan ini oleh Mahkamah Yang Mulia ini;

2.4 semua perintah dan arahan yang berpatutan dan berikutan hendaklah diberikan;

2.5 kos permohonan ini; dan

2.6 relif selanjutnya dan/atau yang lain sebagaimana yang dianggap patut oleh Mahkamah Yang Mulia ini.

[3] In essence, the Applicant filed this judicial review to quash the decision of the 1st Respondent (Industrial Court) in its Award No 396 of 2020 [[2020] MELRU 396] dated 14 February 2020 (the impugned Award) which was handed down pursuant to the claim for unfair dismissal by Khairu Norliza Binti Khairuddin (the 2nd Respondent) against the Applicant under s 20 of the Industrial Relations Act 1967 ( IRA ) wherein the Industrial Court held that the Applicant's dismissal of the 2nd Respondent was without just cause and excuse and ordered a total sum of RM133,000.00 to be paid to the 2nd Respondent.

[4] After the hearing, I allowed the Applicant's application for judicial review (Enclosure 5). The grounds for my decision appear below.

Background Facts

[5] The background facts gathered from the cause papers and submissions of the parties are largely undisputed and can be summarized as follows:

5.1 The Applicant is a media company focusing on radio broadcasts, digital media & e-commerce platforms which is owned by Ripple (formerly known as Media Prima Radio Networks);

5.2 On 22 December 2013, the 2nd Respondent won the first prize in a reality television show conducted by the Applicant upon which the 2nd Respondent was offered employment as a Radio Announcer with radio Hot FM for a one (1) year period from 1 April 2014 until 31 March 2015, vide a fixed term contract of service dated 21 March 2014;

(See: Fixed Term Contract of Service dated 21 March 2014)

5.3 Flowing from the preceding, the 2nd Respondent's fixed term employment as Radio Announcer of Hot FM with Synchrosound Studio vide the Fixed Term Contract of Service dated 21 March 2014 was extended for one (1) year until 31 March 2016;

5.4 On 15 March 2016, the 2nd Respondent executed another fixed term contract for service

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