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2025 MarsdenLR 3377

HIGH COURT MALAYA KUALA LUMPUR
YUNIKU COSMETIC (M) SDN BHD – Appellant
Versus
YEONG YU LENG & ANOR – Respondent
[Civil Appeal No: WA-16-13-11/2022]



Petitioner Advocates:Khaw Chern Wei Jonathan ,Respondent Advocate: Yeoh Jit Wei,Lim May Fenn,Lim

Female employees under full or part-time contracts are entitled to maternity benefits under the Employment Act, independent of their working hours, reaffirming jurisdiction of the Labour Court over claims regardless of employment status.

Headnote:(A) Employment Act 1955 - Section 37 and 69 - Appeal against decision of Director General of Labour concerning claims for wages, maternity benefits, and notice period - Appellant ordered to pay Respondents RM11,854.86 for maternity allowance and salary due, despite claims of errors in interpreting employment status and contract of service. (Paras 1-51)

(B) Claim for maternity allowance - Female employees under a contract of service are entitled to maternity benefits irrespective of part-time status. Eligibility is determined by duration of employment, regardless of changes in working days. (Paras 16-24)

(C) Employment status - Definition of employee under Employment Act allows for inclusion when remuneration exceeds prescribed limits, thus, the director had jurisdiction to hear the matter. (Paras 8-15)

(D) Breach of contract - Appellant’s premature termination of employment was deemed a breach of the contract of service, obligating the payment of salary in lieu of notice. (Paras 37-42) (E) Claims evaluation - Trial court’s factual findings regarding testimonies and documents were adequately substantiated, and appellate interference was unwarranted. (Paras 44-49)

Facts of the case:
This case involves a dispute between the Appellant and two former employees regarding non-payment of wages and maternity benefits, leading to a complaint lodged at the Labour Court. The Director General of Labour’s ruling in favor of the Respondents on 9 November 2022 included orders for the payment of RM11,854.86.

Findings of Court:
The Director General correctly applied the Employment Act to require payments, upholding principles of jurisdiction and employee status.

Issues: The key issues were the eligibility of the First Respondent for maternity allowance despite part-time employment, the definition of an employee, and whether the Appellant wrongfully terminated the Second Respondent's contract.

Ratio Decidendi: The court reaffirmed that female employees can claim maternity allowance regardless of part-time status and clarified the definition of employee under the Employment Act, which encompasses those earning within specified limits. The Director General’s decisions were found to be supported by substantial evidence.

Result: Appeal dismissed with costs of RM4,000.00.

Table of Content
1. appeal against labour court decision. (Para 1 , 3)
2. appellant's grounds for appeal. (Para 4 , 5)
3. eligibility for maternity allowance. (Para 6 , 8 , 10 , 14 , 19 , 21 , 23 , 26)
4. definition of 'contract of service' established. (Para 30 , 32)
5. breach of contract concerning the second respondent. (Para 37 , 42)
6. dgl's consideration of evidence. (Para 44 , 46 , 49)
7. affirmation of dgl's decision. (Para 50)
Ahmad Kamal Md Shahid J:

Introduction

[1] This is an appeal (Encl 1) by the Appellant against the decision of the learned Director General of Labour (DGL) dated 9 November 2022 whereby the Appellant was ordered to pay the Respondents the total sum of RM11,854.86.

[2] After the hearing, I dismissed the Appellant's appeal (Encl 1). The reasons for the decision are set down below.

Background Facts

[3] The background facts of this case can be summarized as follows:

3.1 The Respondents were both former employees of the Appellant. The First Respondent was employed by the Appellant from 5 January 2021 until her effective date of resignation on 30 May 2022.

3.2 The Second Respondent was employed by the Appellant starting from 10 February 2022 until her employment was abruptly terminated by the Appellant on 16 June 2022.

3.3 Due to non-payment of wages, salary in lieu of notice period, maternity benefits and/ or other allowances, the Respondents lodged a complaint against the Appellant according to s 69 of the Employment Act 1955 ( EA 1955) at the Labour Department of Kuala Lumpur (Labour Court) on 14 July 2022 which was registered as Director General of Labour Summon Case No KBR/11401/2022/0783 (Labour Case).

3.4 The Labour Case was heard by the Labour Court on 12 October 2022 and decided on 9 November 2022 in favor of the Respondents wherein pursuant to the Order, the DGL had ordered the Appellant to pay the Respondents the total sum of RM11,854.86, the breakdown of which are as follows:

(A) In relation to the First Respondent. Yeonq Yu Lena

(i) Commission for May 2022 RM136.66

(ii) Balance salary for May 2022 (11 days) RM993.54

(iii) Petrol allowance for May 2022 (11 days) RM110.00

(iv) Parking Claims for May 2022 RM98.00

(v) Maternity allowance (60 days) RM4,600.00

(B) In relation to the Second Respondent, Peh Lee Huey

(i) Balance salary for June 2022 (15 days) RM916.66

(ii) Salary in lieu of notice (2 months) RM5,000.00

By the same Order, the DGL also dismissed the Respondent's claims for annual leave, Covid-19 quarantine leave, sick leave and hospitalization leave and the Second Respondent's claim for commission for May 2022.

3.5 Being dissatisfied with the Order, the Appellant then lodged an appeal to this Honourable Court by filing the Notice of Appeal on 22 November 2022.

The Appellant's Grounds For Appeal

[4] In this appeal, the Appellant sought to set aside the decision of the DGL. The grounds of the appeal as stated in the Memorandum of Appeal dated 21 December 2022 can be summarized as follows:

4.1 The DGL had erred in fact and in law in his decision when he failed and/or did not take into account the relevant fact that the First Respondent, Yeong Yu Leng was a part-time employee of the Appellant and thus, not eligible for the maternity allowance claim filed by her;

4.2 The DGL had erred in fact and in law in deciding that s 37 of the EA 1955 is applicable to the First Respondent's claim;

4.3 The DGL had erred in fact and in law in his decision when he failed and/or did not take into the relevant fact that the First Respondent was a part-time employee of the Appellant;

4.4 The DGL had erred in fact and in law in his decision when he misinterpreted and misapplied the principle of "contract of service" which had been set out in the case of Tekun Concrete (M) Sdn Bhd v. Zulkafah Norazri .

4.5 The DGL had erred in fact and in law in deciding that the Appellant had breached the contract of service when they granted an "early release" to the Second Respondent where the Second Respondent had agreed to an "early release" and asked t

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