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2025 MarsdenLR 5573
INDUSTRIAL COURT MALAYSIA
Preevan a/l Chanderan – Appellant
Versus
RJ Electric – Respondent
2/4-783/24
An employer is justified in terminating a fixed-term employment contract when an employee fails to adhere to essential performance criteria, such as mandatory physical presence at a project site, which is fundamental to the successful execution of duties in a professional safety oversight role.
Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Labour Law - Termination of employment - Fixed-term contract - Performance criteria - Requirement to maintain site presence for safety-related professional role - Failure to perform duties as per employment criteria constitutes legitimate grounds for termination - Employment contract subject to performance standards. (Paras 1, 3, 4)
Facts of the case:
The claimant was employed as a safety supervisor under a fixed-term contract for a one-year duration. The company terminated the agreement following the claimant's failure to adhere to the essential requirement of physical presence at the designated project site, which was considered an integral component of the professional role assigned to the claimant.
Findings of Court:
The court observed that the claimant failed to satisfy the performance criteria of the role, specifically regarding the necessity of site attendance. Given that attendance at the project site was a fundamental requirement of the professional appointment, the employer’s decision to terminate the contract in accordance with the notification period was supported by the failure to meet these specific contractual duties.
Issues: Whether the termination of the fixed-term employment contract, initiated due to the employee's inability to fulfill essential performance requirements and mandatory site attendance, constitutes a justified termination under the relevant labour regulations.
Ratio Decidendi: An employer is justified in terminating a fixed-term contract where an employee fails to perform the core functions of the role, particularly where such functions involve mandatory physical presence essential for safety oversight at a work site.
Result: Termination of employment was found to be consistent with the failure to meet required professional standards.
| Table of Content |
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| 1. procedural background and grounds for fixed-term employment termination. (Para 1 , 2 , 3 , 4) |
AWARD
Rujukan
[1] Prosiding di hadapan Mahkamah ini adalah lanjutan daripada rujukan yang dibuat oleh Menteri Sumber Manusia, Malaysia di bawah Seksyen 20(3) Akta Perhubungan Perusahaan 1967 , berhubung dengan pembuangan kerja Preevan a/l Chanderan (“Yang Menuntut”) pada 23.01.2024 oleh RJ Electric (“pihak Syarikat”).
Fakta Ringkas
[2] Yang Menuntut mula berkhidmat dengan pihak Syarikat sebagai ‘Site Safety Supervisor’ pada 01.01.2024. Jawatan Yang Menuntut adalah berstatus kontrak tempoh tetap yang bermula dari 01.01.2024 dan berakhir pada 01.01.2025.
[3] Yang Menuntut kemudiannya telah didapati tidak memenuhi syarat dan kriteria penting iaitu keperluan untuk berada di tapak projek yang merupakan aspek kritikal dalam menjalankan tugas sebagai ‘Site Safety Supervisor’.
[4] Atas alasan itu, melalui surat pihak Syarikat bertarikh 23.01.2024, perkhidmatan Yang Menuntut telah ditamatkan dengan pemberian notis satu bulan berkuatkuasa pada 23.01.2024, dan tarikh akhir perkhidmatan Yang Menuntut adalah pada 22.02.2024.
