Constructive dismissal occurs when an employer's conduct constitutes a fundamental breach of contract, breaching the implied term of mutual trust, thus entitling the employee to consider themselves dismissed.

[1] This is a reference from the Director General for Industrial Relations to the Industrial Court of Malaysia under subsection 20(3) of the Industrial Relations Act 1967 [Act 177] in respect of the dismissal of JAGDEEP KAUR A/P UDHAM SINGH ("the Claimant") by HALAL DEVELOPMENT CORPORATION BHD ("the Company") on 30 March 2021.

[2] The hearing for this matter, which commenced on 18 September 2023, was initially fixed for three (3) days. As both counsels were able to efficiently conduct the proceedings, the hearing was able to be concluded on its second day ie, 24 April 2024. The Company called two (2) witnesses, ie Adly bin Mohamed ("COW-1") and Hairol Ariffein Sahari ("COW-2"). Whilst the Claimant gave evidence on her own behalf.

[3] In handing down this Award, the following were considered by the Court:

(a) the record of proceedings;

(b) the notes of proceedings;

(c) the Amended Statement of Case dated 28 July 2023;

(d) the Amended Statement in Reply dated 11 August 2023;

(e) the Amended Rejoinder dated 24 August 2023;

(f) the Claimant's Witness Statements ("CLWS1"), the Witness Statement of COW-1 ("COWS1") and the Witness Statement of COW-2 ("COWS2");

(g) the Claimant's Bundle of Documents marked as CLB1;

(h) the Company's Bundles of Documents marked as COB1, COB2 and COB3;

(i) the Claimant's Written Submissions dated 28 June 2024;

(j) the Company's Written Submissions dated 28 June 2024;

(k) the Claimant's Written Submissions in Reply dated 29 July 2024;

(l) the Company's Written Submissions in Reply dated 29 July 2023;

(m) the Claimant's Further Written Submissions in Reply dated 14 August 2024; and

(n) the Company's Further Written Submissions in Reply dated 31 July 2024.

Background Facts

[4] Based on the pleadings and bundles of documents, this Court takes note of the following:

(a) on 5 September 2016, the Claimant entered into a contract of employment with Halal Industry Development Corporation Sdn Bhd now known as Halal Development Corporation Bhd ie the Company;

(b) the Claimant commenced her employment with the Company as a General Manager, Human Capital of the Company and her period of employment was for one (1) year commencing on 5 September 2016;

(c) the Claimant's contract of employment was renewed for four (4) consecutive years ie in 2017, 2018, 2019 and 2020;

(d) for purposes of the Claimant's contract of employment renewed in 2020, the terms and conditions provide, inter alia, as follows:

(i) the Claimant's period of employment is for "two (2) plus one (1) years" ie commencing on 6 September 2020 until 5 September 2023;

(ii) the Claimant's employment is in the capacity of General Manager, Human Capital of the Company;

(iii) the Claimant is directly responsible to the Vice President, Corporate Services of the Company; and

(iv) the Claimant's monthly basic salary is RM16,207.00;

(e) vide letter of transfer dated 15 March 2021, the Claimant was informed that the Management has decided to transfer the Claimant to Halal Event Management with immediate effect; and

(f) as of 31 March 2021, the Claimant's last drawn basic salary per month as agreed between the parties was RM16,207.00.

The Claimant's Case And Submissions

[5] Based on the Amended Statement of Case and Amended Rejoinder, the Claimant avers that she was constructively dismissed by the Company. In relation thereto, the Claimant avers as follows:

(a) she has carried out her duties, responsibilities and obligations for the duration of her employment with an unblemished record;

(b) vide email dated 8 March 2021, the Compa