C.I.* (“The Claimant”) v. MTHM Sdn Bhd* (“The Company”)
Malaysia Industrial Court Award No. 1423 of 2023
The Case:
- The Claimant was a hired as a General Manager on a fixed-term contract from 4th June 2018 to 31st May 2020, with a probationary period of 6 months.
- On 5th December 2018, the Claimant’s probationary period was extended for an additional 6 months due to not meeting the Company’s expectations, followed by a further 3-month extension.
- The Claimant argued that each time the probation period was extended, there was no discussion on his formal assessment of his work performance.
- Then, on 31st May 2019, the Claimant was notified that his position was not confirmed, and his last working day would be on 3rd June 2019.
The Findings:
- During formal meetings, the Claimant frequently used foul language, demoralising the employees.
- The Claimant lacked coaching skills and often humiliated and threatened employees, creating a negative work environment.
- The Claimant failed to adhere to the Company’s recruitment procedures, such as offered a candidate a senior role without conducing reference checks.
- The Company conducted multiple counselling sessions with the Claimant, addressing his shortcomings, particularly his poor people management skills, which he acknowledged.
- When presented with the formal assessment i.e. the Employee Probationary Report, the Claimant neither objected not denied its contents.
- Despite receiving several opportunities, documented in emails and counselling sessions, to improve conduct, behaviour and performance, the Claimant consistently failed, refused and neglected to change his behaviour.
The Outcome:
- The Court found no evidence suggesting that the Company’s decision not to confirm the Claimant’s employment was unjustifiable.
- The Company’s conclusion that the Claimant was unsuitable for long-term employment was deemed reasonable hence the Court concluded that the dismissal was with just cause and excuse, resulting the Claimant’s claims dismissed.
As long as the employer exercises its discretion not to confirm a probationer in good faith, the court will not interfere the decision to release the employee. Oh, and let’s not forget that in HR, paperwork kena cantik.
If you want to learn more about managing probationers, check out my Ceramah on LinkedIn: https://www.linkedin.com/events/thetrialrun-managingprobationer7070675109656596480/theater/
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* Names have been modified.
