2017 MarsdenLR 2434
INDUSTRIAL COURT KUALA LUMPUR
THARMANANDAN THANGAMUTHU – Appellant
Versus
ALAM ETIKAA RESOURCES (M) SDN BHD – Respondent
Award No: 584 Of 2017 [Case No: 14/4-1152/15]
Non-payment of wages for an extended period constitutes fundamental breach of employment contract, justifying constructive dismissal.
Headnote:The case involves a claim for constructive dismissal under the Industrial Relations Act 1967, specifically concerning unpaid wages and salary reductions. The Claimant alleged unlawful constructive dismissal due to non-payment of salary for six months, which the Court found constituted a fundamental breach of contract. The ruling emphasized that salary delays can amount to repudiation of employment contracts and determined that the Claimant successfully proved his case. The total compensation awarded, totaling RM 106,122.59, is ordered to be paid by the Company within 30 days.
| Table of Content |
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| 1. details of claimant's employment and salary claims. (Para 1) |
| 2. referral and context of constructive dismissal case (Para 2) |
[1] This matter was referred to Court by way of Ministerial reference under s 20(3) of the Industrial Relations Act 1967 on 02 December 2016 and was received by the Court on 09 December 2016, arising out of the alleged constructive dismissal of Tharmanandan Thangamuthu (hereinafter called "the Claimant") by Alam Etikaa Resources (M) Sdn Bhd. (hereinafter called "the Company") on 25 March 2015.
[2] The Courts record showed that there was an earlier reference by the Honourable Minister dated 08 October 2015 in respect of the same matter and same Claimant except the name of the employer is Alam Etikaa Sdn Bhd. This award however will only be confined to the second reference dated 02 December 2016. Any reference made to Alam Etikaa Sdn Bhd. in the pleadings is substituted with Alam Etikaa Resources (M) Sdn Bhd.