2023 MarsdenLR 1453
INDUSTRIAL COURT KUALA LUMPUR
SELVAM KUPPUSAMY – Appellant
Versus
PACIFIC STAR DEVELOPMENT (MALAYSIA) SDN BHD – Respondent
Award No: 888 Of 2023 [Case No: 3/4-108/21]
An employee cannot be dismissed without just cause unless the employer proves the employee's poor performance was substantiated and communicated.
Headnote:This judgment reviews the dismissal of the Claimant, Selvam Kuppusamy, by Pacific Star Development on 31 March 2020, under s 20(3) of the Industrial Relations Act 1967. The court found no just cause for termination based on poor performance allegations that were not substantiated. Key issues included the adequacy of warnings provided to the Claimant regarding performance, which the court determined were insufficient or absent. The court ruled in favor of the Claimant, ordering compensation in lieu of reinstatement amounting to RM246,000.
| Table of Content |
|---|
| 1. circumstances surrounding the claimant's dismissal and its legal implications. (Para 1 , 2 , 5 , 22) |
| 2. requirement of an employer to substantiate dismissal reasons. (Para 12 , 20 , 31) |
| 3. final judgment ordered compensation based on claim findings. (Para 70) |
Reference
[1] This is a reference made under s 20(3) of the Industrial Relations Act 1967 [Act 177] arising out of the dismissal of Selvam Kuppusamy (hereinafter referred to as "the Claimant") by Pacific Star Development (Malaysia) Sdn Bhd (hereinafter referred to as "the Company") on 31 March 2020.
[2] The Ministerial reference in this case required the Court to hear and determine the Claimant's complaint of dismissal by the Company on 31 March 2020 and was received by the Industrial Court on 18 January 2021.
[3] Hearing of this case proceeded on 1 July 2022, 6 September 2022, 20 September 2022 and concluded on 21 September 2022. In this trial, the following witnesses have been called by the parties:
(a) The Claimant's witness:
CLW-1: Mr Selvam Kuppusamy, the Claimant, former Liaison Manager of the Company.
(b) The Company's witness:
COW-1: Mr Ying Wei Hsien, the Director of the Company.
[4] This Court had considered all the notes of proceedings in this matter, and the following documents in handing down this Award:
(a) Pleadings
(i) Statement of Case dated 15 March 2021;
(ii) Statement in Reply dated 5 April 2021;
(iii) Rejoinder dated 16 April 2021.
(b) Bundles of Documents
(i) Claimant's Bundle of Documents marked as "CLB-1";
(ii) Claimant's Additional Bundle of Documents marked as "CLB-2";
(iii) Claimant's 2nd Additional Bundle of Documents marked as "CLB-3";
(iv) Company's Bundle of Documents marked as "COB-1";
(v) Company's Witness Statement Bundle of Documents marked as "COB-2".
(c) Witness Statements
(i) Claimant's Witness Statement of Selvam Kuppusamy marked as "CLWS-1";
(ii) Company's Witness Statement of Ying Wei Hsien marked as "COWS-2".
(d) Written Submissions
(i) Claimant's Written Submission dated 7 November 2022;
(ii) Company's Written Submission dated 14 November 2022;
(iii) Claimant'sReply toCompany Submission dated 20 December 2022;
(iv)Company's Reply to Claimant's Written Submission dated 22 December 2022.
Brief Facts
[5] The dispute before this Court is the claim by the Claimant that he had been dismissed from his employment without just cause or excuse by the Company on 31 March 2020.
[6]Vide a letter dated 31 March 2020, the Company terminated the Claimant's employment with immediate effect due to poor work performance and misconduct.
[7] The Claimant was the Liaison Manager of the Company with the basic salary of RM6,000.00 per month when he was terminated.
The Claimant's Case
[8] The Claimant was employed by The Greenwich Group (Asia) Sdn Bhd on 1 August 2002 and later transferred to work under Pacific Star International Sdn Bhd on 1 August 2006. Subsequently he was assigned to work under the Company.
[9] The Claimant started to work as a Driver and he was promoted to Liaison Officer on 3 October 2008 and subsequently promoted to the post of Liaison Manager in the year 2015.
[10] The Claimant pleads that while the Claimant was required by the Company to work from home during the Covid-19 Pandemic period, the Claimant received a termination letter dated 31 March 2020 from the Company whereby the Claimant employment was terminated immediately on unfounded allegations of failure to comply with instructions on multiple occasions and for displaying unacceptable work attitude.
[11] The Claimant was holding the post of Liaison Manager with the basic salary of RM6,000.00 per month when he was terminated.
[12] The Claimant avers that the Company had failed to conduct a domestic inquiry on the allegation levelled against him before termination of the employment. The Claimant further avers that the Company had failed to provide a valid and justifiable reason for the termination.
[13] The Claimant states that his termination could not be justified by the