1. In this trade dispute between Equatorial Timber Moulding Sdn Bhd, Kuching, Sarawak (hereinafter referred to as "the Company") and Mr.John Michael Crosskey, Kuching, Sarawak (hereinafter referred to as "the Claimant"), the Claimant alleged that he was dismissed by the Company without just cause or excuse and in violation of the rules of natural justice. He prayed for an order that he be reinstated to his former position without loss of any benefits, monetary or otherwise. Alternatively, in the event that the Court felt that reinstatement would not be the proper remedy, he asked for, in addition to his arrears of wages, compensation. His prayer, in details, is as follows:-

"(a) reinstatement to his former position in the Company without loss of any benefits monetary or otherwise or at the discretion of this Court compensation in lieu thereof and arrears of wages from the date of dismissal to the last date of hearing of this case as follows:-

Compensation from the date of purported dismissal which is 9th September 1985 up to the date of the hearing which is 8th September 1986, a total of 12 monthly,

i.e. $5,900 x 12 =$70,800

Add: Annual Leave 5,900

Add: Three month's Notice 17,700

Add: Repatriation allowance 4,000

$98,400

(b) in the event the Court feels reinstatement would not be the proper remedy, the Claimant shall be paid, in addition to the compensation asked for in paragraph (a), the following sums of money when Claimant was employed up to the purported dismissal date with 3 months' notice:

i) Difference in the salary after the probationary period beginning from March 1985 to October 1985 - $500 x 8 = $ 4,000

ii) Annual leave pay for 13 months 5,900

iii) Add another 2 months' notice 11,800

$22,700

(c) costs of this action and such other relief as the Court deem fit."

2. The Claimant's case is primarily this. He was appointed as a probationary Factory General Manager effective from 17th September, 1984 with a monthly salary of $4,200/-, a housing allowance of $800/- per month and a car allowance of $400/- per month. He was on six-months' probation. After probationary period, his salary would be increased to $4,700/- per month. One of the terms in the appointment letter was:-

"The present contract is open ended and a 3 months' notice to this agreement can be given by either party, whereby a one month's notice is valid during the probationary period."

3. The Claimant took up his appointment as scheduled. He applied for a relocation loan of $11,000/- from the Company to purchase a car on the understanding that the said loan was to be repaid three months after his arrival, i.e. by 31st December, 1984. On 28th January 1985, he received a letter from the Company terminating his employment as a Factory General Manager with effect from 31st January 1985. That letter reads as follows:-

"Please find enclosed the decision on the ETM factory reorganisation established by the Executive Management.

We, therefore, refer to your letter of appointment and changed into the position of Sales Manager as from 29.1.1985 for the ETM Retail Section located in the ETM showroom at 10C, Rubber Road. You are responsible to me and I refer to my previous memo concerning the presentation of a concept on the retail/sales activities to be proposed by you.

You are requested to hand over all current activities remaining from your previous position to the persons according to the enclosed information and to leave your factory office for further alternative occupation until 31.1.1985.

Further details on your terms of reference shall be communicated to you in due course including the conditions for your confirmation upon termination of your probation period with our Company."

4. In accordance with that letter of 28th January 1985, the Claimant accepted his appointment as a Sales Manager. And according to him, he accepted it under protest. He carried out his duty as the Sales Manager until 9th September 1985 when his services were terminated as below:-

"Dear Sir

RE: TERMINATION