AWARD

Vanithamany Sivalingam:

Reference

[1] This is a reference by Director General of Industrial Relations to this Industrial Court under s 20(3) of the Industrial Relations Act 1967 ("The Act") for an award in respect of the dispute arising out of the alleged termination of LIM SWEE CHAI ("the Claimant") by his employer ADVANCECON HOLDINGS BERHAD ("Company").

[2] This Court takes cognizance of the following bundles, statements, submission and cause papers filed:

Documents In Court Files

I. Statement of case dated — 8 June 2023.

II. Statement of reply dated — 4 July 2023.

III. Amended Statement of Reply — 20 June 2024.

IV. Rejoinder dated — 11 July 2023.

V. Claimant's Bundle of Document — (CLB1, CLB2, CLB3, CLB4, CLB5, CLB6)

VI. Company's Bundle of Document — (COB1, COB2, COB3)

VII. Witness Statement of the Claimant — YAP CHEE HOONG (CLWS1)

VIII. Witness Statement of the Claimant — YEO AN THAI (CLWS2)

IX. Witness Statement of the Claimant — LIM KHAI CHUAN (CLWS3)

X. Witness Statement of the Claimant — LIM SWEE CHAI (CLWS4)

XI. Witness Statement of the Company — DATO' PHUM ANG KIA (COWS1)

XII. Company's Written Submission dated — 14 April 2025

XIII. Claimant's Written Submission dated — 14 April 2025

XIV. Company's Written Submission in Reply dated — 30 April 2025

XV. Claimant's Written Submission in Reply dated — 30 April 2025

XVI. Company's Bundle of Authorities

XVII. Claimant's Bundle of Authorities

The Claimant's Case

[3] The Claimant was the Deputy Group Chief Executive Officer of the Company, and his last drawn salary was RM74,500.00. In year 1981, the Claimant was working as the water work contractor in Low Hoo & Son. In 1985, the Claimant joined Teguh Kaya Sdn Bhd as Contract Manager. The Claimant knew Phum Ang Kia ("CEO") somewhere in 1990s where Phum Ang Kia was the sub-contractor for Teguh Kaya Sdn Bhd Vide a common friend of both parties named Eng See Teck, the Claimant and Phum Ang Kia decided to form a joint venture. Both parties co-founded the Company Advancecon Sdn Bhd in year 2020.

[4] The Claimant's job scope were:

i) The Group's overall strategic management and strategic corporate planning;

ii) Overseeing contracts and operations related matters;

iii) Overall contract management functions and managing office operations for projects undertaken.

[5] The corporate structure was that Phum Ang Kia to be the CEO and the Claimant to be the Deputy CEO. Both parties had mutually agreed to continue to lead the Company until they voluntarily step down. The renewals of contract between them were agreed to be just a formality. The Claimant and Phum Ang Kia have been business partners for almost 30 years until the Claimant was unlawfully removed in 2022.

[6] Sometime in 2019, the relationship between the Claimant and Phum Ang Kia became strained over the issue of a company called Advancecon Solar Sdn Bhd (wholly owned subsidiary of the Company) which was managed by Phum Ang Kia's son Phum Boon Lim and Teh Heng Wee. The Board of Directors questioned these two people due to serious compliance issues and later both resigned from the Company and Phum Ang Kia was very unhappy. This made the relationship between the Claimant and Phum Ang Ki became strained.

[7] On 28 April 2022, Phum Ang Kia single handedly signed the End of Contract of Service Notification and terminate the contract of the Claimant. The Claimant was not given the reason for the non renewal of the contract and there was no warning or show cause letter issued. The Claimant alleged that the termination of his contract was made unlawfully and tainted with malafide.

The Company's Case

[8] The Company averred that the Claimant was employed vide a fixed term contract on 17 April 2020 until 30 April 2022. The Claimant's last held position was as the Deputy Group CEO and his last drawn salary was RM74,500.00. Vide letter of appointment dated 14 March 1993, the Claimant was appointed as the Director of the Company with the salary of RM2,500.00 Pursuant to cl 9 of the contract of employment, the r