JUDGMENT

Harun Hashim SCJ:

The respondent in both these appeals was employed by the appellant in Rayuan Sivil No. 02-44-91 (Magnum) as an accountant on 1 September 1978. On 1 August 1985 he was romoted to the position of general manager (4-D Operations) with an increase in monthly salary to RM8,000 with effect from 1 January 1986. On 1 April 1987 there was a change of name from gaming department to gaming division and the respondent was appointed head of that division.

By letter of 24 June 1987 Magnum informed the respondent that following a review of the company's management requirements, it was decided to abolish the position of head, gaming division and that he would be retrenched (with retrenchment benefits) with effect from 1 October 1987. According to Magnum, the function of head of gaming division could be performed by the Group general manager, as the latter's duties had since decreased. According to the respondent, however, there was no justification to abolish the position of head of gaming division as the duties of that position had not changed with re-organisation and it was also the principal income earner of the company. The respondent appealed against the retrenchmen