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2024 MarsdenLR 1357

INDUSTRIAL COURT IPOH
CHONG SHI WEI – Appellant
Versus
PROCTER & GAMBLE (MALAYSIA) SDN BHD – Respondent
Award No: 1379 Of 2024 [Case No: 10/4-440/22]



Petitioner Advocates:VK Raj ,Respondent Advocate: John Rolan Fernandez,Han Li Meng

Constructive dismissal requires a significant breach by the employer; the transfer instruction was lawful and did not breach the employment contract.

Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Constructive dismissal - Claimant's role and responsibilities compared to previous position - Transfer instruction deemed lawful and not a demotion - Claimant failed to prove breach of contract or intention not to be bound by the contract. (Paras 44, 56, 97)

(B) Employment contracts - Right to transfer employees - Employer's discretion upheld - Claimant's refusal to comply with transfer instruction led to resignation. (Paras 61, 94)

Facts of the case:
The Claimant was employed by the Company and assigned to P & G Singapore. Upon the resignation of a senior employee, the Claimant was offered a transfer back to Malaysia, which she perceived as a demotion. The Claimant alleged constructive dismissal based on the transfer instruction.

Findings of Court:
The court found that the Claimant had not been constructively dismissed and that the transfer instruction was lawful and aligned with the Company's business needs.

Issues: Whether the Claimant was constructively dismissed due to the transfer instruction and if the Company breached the employment contract.

Ratio Decidendi: The court ruled that the transfer was within the Company's rights and did not constitute a breach of contract, emphasizing the importance of the contract test over the reasonableness test in constructive dismissal claims.

Result: Claim dismissed.

AWARD

Zulhelmy Hasan:

Reference

[1] This is a reference by the Director General of Industrial Relations Department Malaysia dated 28 January 2022 pursuant to s 20(3) of the Industrial Relations Act 1967 which was received by the Industrial Court of Malaysia on 10 February 2022 arising out of the alleged unfair dismissal of CHONG SHI WEI (hereinafter referred to as "the Claimant") by PROCTER & GAMBLE (MALAYSIA) SDN BHD (hereinafter referred to as "the Company") on 18 June 2021.

Factual Backgrounds

[2] The Claimant was the employee of the Company who was placed on an International Assignment in P & G Singapore at the material time. The Company and P & G Singapore are both wholly own subsidiaries of Procter & Gamble Operations SA (Switzerland).

[3]Vide Letter of Appointment dated 11 August 2005 (pp 1-2 of CLB-1) the Claimant commenced employment with the Company on 1 September 2005 as a Key Account Manager, Customer Business Development in Category Band 1. Subsequently the Claimant was confirmed in her position by the Company.

[4] Whilst the Claimant was employed in Malaysia and the Claimant was already in employment category Band 3, she had been promoted on various occasions and was given increments in salaries. Her last held position in Malaysia before her transfer to Singapore in 2014, was a Team Leader, Malaysia Tesco and SK-II (pp 7-8 of CLB-1).

[5] By email dated 17 February 2014 (pp 9-10 of CLB-1), the Company announced that there will be some organization change and the Claimant will be relocated to Singapore with effect from 1 April 2014. The Claimant was instructed to go on assignment/transfer to Singapore by letter dated 26 February 2014 (11-13 of CLB) to take on the role of Group Manager - Customer Business Development, Market Strategy & Planning, Hair Care, for ASEAN, as appears in Company's email dated 17 February 2014. There was no duration specified for the assignment/transfer to Singapore. The Claimant agreed to go on transfer for the assignment to Singapore and with that, she remained as an employee of the Company with her last remuneration package provided by the Company (pp 5-30 of CLB-2) including monthly fix pay of SGD21,431.00.

[6] The Claimant's role, duties and responsibilities in Malaysia prior to her transfer to Singapore in 2014, she had assumed the role as Malaysia Distributor Operations (DO) Leader which were clearly spelled out in her official Work and Development Plan dated 28 September 2011, being signed off by the then Country Manager (pp 3-6 of CLB-1). The detailed evidence of the role and responsibility of her last position in the Company as the General Manager - Singapore Sales and SIDOC Leader as explained in pp 37-41 of CLB-2 and supported by series of emails and attachments listed from pp 42-183 of CLB-2.

[7] The Claimant alleged that from the Claimant's contract of employment that her transfer to any location as deemed necessary by the Company has to be in line with her career growth and expansion. Hence, from time to time of her arrival in Singapore, he was entrusted with bigger and expanding responsibilities throughout the period of more than seven (7) years she was there (p 14 of CLB-1) as she held various positions in Singapore's assignment/transfer consonant with her expanding duties and responsibilities until her last position as the General Manager - Singapore Sales & P & G Singapore Innovation Centre (SIDOC) Leader for Asia Pacific, Middle East and Africa (AMA) from August 2020 to June 2021 and she had 30 subordinates officers reporting under her as referred to the organization chart (pp 2-4 of CLB-1).

Event Leading To The Claimant's Constructive Dismissal

[8] In May 2021, a senior employee of the Company namely Saibanu Ramani (Banu) who held the position of Director Sales, Distribution Operations Leader & Distributor Team Leader (Band 3) / DO Leader Malaysia had resigned and would cease employment with the Company with effect from 9 July 2021. This gave rise to an urgent need for the Comp


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