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2006 MarsdenLR 1712

COURT OF APPEAL PUTRAJAYA
MENTERI SUMBER MANUSIA – Appellant
Versus
JOHN HANCOCK LIFE INSURANCE (MALAYSIA) BHD & ANOTHER APPEAL – Respondent
[Civil Appeal Nos: W-01-32-2003 & W-02-419-2003]



Petitioner Advocates:Alice Loke ,Respondent Advocate: R Abraham,Mazura Kamaludin

JUDGMENT

Mohd Ghazali Yusoff JCA:

[1] These two appeals which were heard together stem from the decision of Faiza Tamby Chik, J who allowed the application of John Hancock Life Insurance (Malaysia) Berhad (the applicant and hereinafter referred to as "the company") against the Minister of Human Resources, Malaysia (the 1st respondent and hereinafter referred to as "the Minister"), Ng Kim Hoong (the 2nd respondent and hereinafter referred to as "the claimant") and the Industrial Court (the 3rd respondent and hereinafter referred to as "the Industrial Court") for the following reliefs:

(i) an order of certiorari to quash the decision of the Minister for referring representations made by the claimant under s 20 of the Industrial Relations Act 1967("the Act") to the Industrial Court for adjudication; and

(ii) an order of prohibition to prevent the Industrial Court from hearing the claimant's representations under s 20 of the Act.

[2] The Minister and the claimant are the respective appellants in these appeals.

The Back Ground

[3] By letter dated 9 April 1997, the company offered the claimant the position of President & Chief Executive Officer (hereinafter referred to as "the aforesaid positions") with a basic monthly salary of RM25,000; the letter reads:

Dear Mr. Ng,

Here are the key points of our offer to you concerning the position of President & Chief Executive Officer of John Hancock Life Insurance (Malaysia) Berhad, referred to hereafter as the Company.

1. You will receive a basic monthly salary of RM25,000.

2. You will be eligible to participate in the Company's Incentive Compensation Plan. Awards under this Plan are related to the Company's performance relative to the annual goals approved by the Board of Directors. Your target award will be four times your basic monthly salary. The actual award for 1997, distributed in May 1998, will be based on RM100,000 pro-rated for the number of months of service in 1997.

3. The Company will provide group life, and retirement benefits in accordance with the rules and regulations of the schemes that are in place. You and your family will be covered for the medical benefits of the company. Any change in employee benefit schemes shall be decided by the Board of Directors.

4. You will be entitled to a fully-maintained company car with a driver. The car will be a Mercedes E230. The car will be replaced every five years. Any change in make and model of the company car shall be decided by the Board of Directors.

5. The Company will provide a golf club membership for you and your family at KL Golf & Country Club and pay for the monthly subscriptions of two other clubs, ie, Royal Selangor Golf Club and Bukit Kiara Equestrian Club. If, for any reason,your employment with the Company is terminated before five years (60 months) from the effective date of employment, you are required to pay back to the Company the outstanding balance of the amortized cost of the golf membership over the five year period.

6. There will be a period of up to six months before your appointment is confirmed by the Board of Directors. During this period, your employment may be terminated without cause by either party upon two weeks notice.

7. After your confirmation by the Board of Directors, you will be entitled to 22 working days of annual leave per year.

This letter is intended to reflect the oral agreement achieved through Mr. C.F. Lee of Wendy Lau Associates Sdn Bhd. Should you find it to be acceptable as is, please indicate your acceptance of this offer and confirm your intention to join John Hancock Life Insurance (Malaysia) Berhad.

I hope we may look forward to welcoming you to this key senior executive appointment in the John Hancock family of companies.

Yours sincerely

(Sign.)

Derek Chilvers

Chairman of the Personnel Committee

John Hancock Life Insurance

(Malaysia) Berhad

Accepted and Confirmed:

(Sign.)

John Ng Kim Hoong.

[Emphasis Added]

[4] The claimant accepted the aforesaid offer and commenced employment with the company with effect fr

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