SupremeToday Landscape Ad
AI Thinking

AI Thinking...

Searching Case Laws & Precedent on Legal Query.....!

Analysing the retrieved Case Laws

Scanned Judgements…!


AI Overview

AI Overview...

  • Post-dismissal employment admission - Several cases acknowledge that Claimants were employed after dismissal, but often lack concrete evidence of earnings, impacting backwages calculation. For example, in

    JUNAIDY SULAIMAN vs PPG COATINGS (MALAYSIA) SDN BHD - 2024 MarsdenLR 1101

    , the Court notes the Claimant had post-dismissal income (~RM230,000), but the evidence of actual earnings was not detailed. Similarly, in

    MUHAMMAD SAID HJ ABDULLAH vs MELAKA BEKAL SDN BHD - 2023 MarsdenLR 1479

    , the Claimant's fixed-term contract was dismissed before expiry, with no post-dismissal earnings available for deduction due to the period of unexpired contract.
  • Requirement to prove gainful employment - Courts emphasize the need for Claimants to substantiate post-dismissal earnings. In

    NADIAH OTHMAN vs GDP INTERIORS SDN BHD - 2023 MarsdenLR 1330

    and

    ABDUL SIDIK ABDUL HAMID vs PERUSAHAAN OTOMOBIL NASIONAL SDN BHD - 2023 MarsdenLR 1334

    , Claimants provided evidence (e.g., part-time jobs, employment in February 2023 earning RM3,000/month), which the Court considered in assessing backwages. When Claimants fail to produce evidence (e.g.,

    KHAIRUL ANUAR AB AZIZ vs JET CONSTRUCTION AND ENGINEERING SDN BHD & ANOR - 2025 MarsdenLR 3663

    ), no deductions are made, and the Court proceeds based on available facts.
  • Legal principles for deductions - The Court consistently states that if gainful employment is established, deductions from backwages should be made, typically around 10-20%, depending on the case (

    ABDUL SIDIK ABDUL HAMID vs PERUSAHAAN OTOMOBIL NASIONAL SDN BHD - 2023 MarsdenLR 1334

    ,

    LEE TZE TORNG vs LIMMAS MANUFACTURING (MALAYSIA) SDN BHD - 2024 MarsdenLR 16

    ). When no evidence exists, no deductions are applied (

    KHAIRUL ANUAR AB AZIZ vs JET CONSTRUCTION AND ENGINEERING SDN BHD & ANOR - 2025 MarsdenLR 3663

    ).
  • Impact of lack of evidence - In cases like

    SITI HASMAH AHMAD AZAHAR vs PLENITUDE HEIGHTS SDN BHD - 2024 MarsdenLR 389

    , the absence of evidence on post-dismissal earnings leads the Court not to deduct from backwages, even if the Claimant is employed later. Conversely, when evidence is provided, deductions are justified to reflect actual earnings and prevent unjust enrichment.
  • Assessment of fairness and credibility - Courts consider whether Claimants have contributed to their own predicament (e.g.,

    LEE TZE TORNG vs LIMMAS MANUFACTURING (MALAYSIA) SDN BHD - 2024 MarsdenLR 16

    ) and whether dismissals were justified. Unchallenged testimony of current employment (e.g.,

    ANG CHIN GAIK vs WV SERVICES MALAYSIA SDN BHD - 2025 MarsdenLR 4282

    , earning RM32,500/month) influences the Court to factor in significant post-dismissal earnings when awarding backwages.

Analysis and Conclusion:In Labour Law cases involving admissions of post-dismissal employment, the key factor is the availability and credibility of evidence demonstrating actual earnings. Courts recognize that gainful employment after dismissal warrants deductions from backwages to ensure fairness. However, in the absence of such evidence, no deductions are made, and the Court awards backwages based on the Claimant's unchallenged testimony or other available proof. The principle remains that the Court should assess all relevant facts, including post-dismissal earnings, to arrive at a just and equitable award.

Industrial Court Deductions for Unproven Post-Dismissal Earnings: Principles and Burden of Proof

Back Wages in Industrial Court: No Post-Dismissal Earnings Proof

Introduction

Imagine being dismissed from your job, fighting for reinstatement or compensation in Malaysia's Industrial Court, and securing a win—only to face deductions from your back wages because you admitted to new employment but couldn't prove your earnings. This scenario raises a critical question in labour law: In an Industrial Court Labour Law Case there is Admission that the Claimant was Employed Post Dismissal but there is no Evidence of Earning?

This common pitfall can significantly reduce awards under the Industrial Relations Act 1967. Courts aim for fairness, balancing the claimant's loss against potential mitigation through new work. In this post, we delve into judicial trends, key precedents, and practical advice, drawing from established cases. Note: This is general information based on jurisprudence; consult a legal professional for specific advice.

Main Legal Finding

Generally, when a claimant admits post-dismissal employment but provides no evidence of earnings, Industrial Courts are inclined to deduct from back wages—often around 25% or more—to account for presumed income. This stems from the principle that courts must consider mitigation of loss. Full back wages without deduction are rare unless unemployment is proven.

As stated: This court must take into account any post dismissal earnings of the claimant in order to make an appropriate deduction from the back wages to be awarded.

QUDRI ALI ABU BAKAR vs IMA GLOBAL CERTIFICATION SDN BHD - 2021 MarsdenLR 1039

Key Principles on Post-Dismissal Earnings

Courts consistently emphasize evaluating post-dismissal income when quantifying back wages. Here's a breakdown:

  • Mandatory Consideration: Back wages calculations require factoring in any gainful employment post-dismissal, if evidenced or admitted.

    QUDRI ALI ABU BAKAR vs IMA GLOBAL CERTIFICATION SDN BHD - 2021 MarsdenLR 1039

    JOLENE LEE MIAO CHI vs IFLIX SDN BHD - 2021 MarsdenLR 3360

  • Lack of Evidence Leads to Deduction: Without proof, courts make reasonable deductions on the back wages accordingly for post dismissal earning.

    YEE SENG JOO vs PM SECURITIES SDN BHD - 2017 MarsdenLR 2750

  • Typical Deduction Range: Jurisprudence shows deductions of 10-50%, with 25% common when silence implies hidden earnings.

    YEE SENG JOO vs PM SECURITIES SDN BHD - 2017 MarsdenLR 2750

    RADHALETCHIMY A MUNUSAMY vs PREMIUM VEGETABLE OILS BHD - 2010 MarsdenLR 3206

  • Burden Shifts with Silence: Claimants risk deductions by not disclosing status: a claimant who has not been gainfully employed since his dismissal... should clearly say so to the court. To remain silent is to risk the court making a deduction deemed reasonable.

    JOLENE LEE MIAO CHI vs IFLIX SDN BHD - 2021 MarsdenLR 3360

These principles ensure awards aren't inflated, promoting equity for employers.

Detailed Analysis from Landmark Cases

Obligation to Deduct Proven or Presumed Earnings

In

QUDRI ALI ABU BAKAR vs IMA GLOBAL CERTIFICATION SDN BHD - 2021 MarsdenLR 1039

, the court mandated deductions for admitted post-dismissal work, absent contrary proof. Similarly,

JOLENE LEE MIAO CHI vs IFLIX SDN BHD - 2021 MarsdenLR 3360

referenced DTS Trading Sdn Bhd v. Wong Weng Kit, holding: even if no evidence is adduced as regards post dismissal earnings, the court is entitled... to make a deduction for post dismissal earnings.

Practical Application of Deductions

A prime example is

YEE SENG JOO vs PM SECURITIES SDN BHD - 2017 MarsdenLR 2750

, where the judge reduced back wages by 25% due to no evidence: in the absence of evidence to the contrary, I am inclined to make reasonable deduction on the back wages accordingly for post dismissal earning.

Failure to submit documents like EPF statements reinforces presumptions: Failure to submit the EPF statements can only be taken to mean the Claimant wishes to hide his post dismissal earnings.

MONG KIAN LIANG vs RECRON (MALAYSIA) SDN BHD

Broader Jurisprudence

Courts also limit awards considering industry status. In one appeal, back wages were capped at 50% as there is no evidence on record to hold that the petitioner was not gainfully employed during the termination. 2019 0 Supreme(Chh) 493 This reflects Supreme Court ratios prioritizing evidence.

Burden of Proof Dynamics

Primarily, claimants bear the onus to prove low or no earnings post-dismissal. However, employers must substantiate misconduct for dismissal under Section 20(3) of the Industrial Relations Act 1967. In unjust dismissal cases without domestic inquiry, like attendance manipulation or force majeure claims, courts rule against employers failing proof burdens.

MONG KIAN LIANG vs RECRON (MALAYSIA) SDN BHD

MOHD HAMDI MOHMAD ZAINI vs GDP INTERIORS SDN BHD

Ex-parte rulings highlight employer pitfalls: failure to appear presumes claimant truths, leading to awards but still subject to earnings scrutiny.

MURUGAN VARATHAN vs BRINKS CORPORATION SDN BHD

Here, unchallenged testimony of low earnings (RM60 daily) prompted only a 10% deduction.

Insights from Related Rulings

Analogous cases reinforce caution on unproven claims:

  • In

    MOHD HAMDI MOHMAD ZAINI vs GDP INTERIORS SDN BHD

    , courts assess quantum considering the fact, if established by evidence or admitted, that the workman has been gainfully employed elsewhere after his dismissal.
  • Compensation claims (e.g., motor accidents) mirror this: unproven income leads to notional minimum wages. 2010 0 Supreme(Mad) 3571 2007 0 Supreme(Mad) 3640
  • Even in workmen compensation, tribunals fix incomes conservatively without evidence. 2010 0 Supreme(Mad) 3571

These illustrate a judicial preference for evidence over assertions, applicable across labour disputes.

Exceptions and Strategic Considerations

  • Full Awards Possible: Explicit proof of unemployment or minimal pay (e.g., payslips, tax returns) can secure undiminished back wages.
  • Employer Challenges: If claimants overstate unemployment, courts deduct based on inconsistencies, as in cases with FIR discrepancies. 2020 0 Supreme(Mad) 1722
  • Proportionality: Dismissals without just cause (e.g., no inquiry) yield reinstatement or compensation, but earnings still factor in.

    MONG KIAN LIANG vs RECRON (MALAYSIA) SDN BHD

Recommendations for Claimants and Employers

  • For Claimants:
  • Disclose status proactively with documents (contracts, EPF, payslips).
  • Avoid silence—affirm low/no earnings under oath.
  • Prepare for cross-examination on mitigation duties.

  • For Employers:

  • Probe post-dismissal employment in proceedings.
  • Demand EPF/income proof to justify deductions.
  • Ensure domestic inquiries to shift burdens favorably.

Courts urge: Produce evidence to avoid presumptions.

MONG KIAN LIANG vs RECRON (MALAYSIA) SDN BHD

Conclusion and Key Takeaways

In summary, admission of post-dismissal employment without earnings evidence typically triggers 25%+ back wages deductions in Industrial Court, as courts presume mitigation unless disproven. Burden lies with claimants, but employers must prove just cause. Key precedents like

QUDRI ALI ABU BAKAR vs IMA GLOBAL CERTIFICATION SDN BHD - 2021 MarsdenLR 1039

,

JOLENE LEE MIAO CHI vs IFLIX SDN BHD - 2021 MarsdenLR 3360

, and

YEE SENG JOO vs PM SECURITIES SDN BHD - 2017 MarsdenLR 2750

guide this balanced approach.

Takeaways:- Evidence is king—gather it early.- Silence costs; transparency pays.- Awards reflect fairness, not windfalls.

This analysis draws from Malaysian jurisprudence for educational purposes. Labour disputes turn on facts; seek tailored advice from qualified counsel.

References

  1. QUDRI ALI ABU BAKAR vs IMA GLOBAL CERTIFICATION SDN BHD - 2021 MarsdenLR 1039

    – Post-dismissal earnings consideration.
  2. JOLENE LEE MIAO CHI vs IFLIX SDN BHD - 2021 MarsdenLR 3360

    – Deductions despite no evidence.
  3. YEE SENG JOO vs PM SECURITIES SDN BHD - 2017 MarsdenLR 2750

    – 25% deduction example.
  4. RADHALETCHIMY A MUNUSAMY vs PREMIUM VEGETABLE OILS BHD - 2010 MarsdenLR 3206

    – Silence leading to reductions.
  5. MONG KIAN LIANG vs RECRON (MALAYSIA) SDN BHD

    – EPF non-submission implications.
  6. MOHD HAMDI MOHMAD ZAINI vs GDP INTERIORS SDN BHD

    Gainful employment factor.
  7. MURUGAN VARATHAN vs BRINKS CORPORATION SDN BHD

    – Minimal earnings deduction.
#LabourLawMalaysia, #BackWages, #IndustrialCourt
Chat Download
Chat Print
Chat R ALL
Landmark
Strategy
Argument
Risk
Chat Voice Bottom Icon
Chat Sent Bottom Icon
SupremeToday Portrait Ad
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top