AH* (“the Claimant”) v. NN Sdn Bhd* (“the Company”)
Malaysia Industrial Court Award No. 1466 of 2023
The Case:
- The Claimant has been employed by the Company, a food services business, since 15th Feb 2012 as an HR Executive.
- The Company informed her that the Covid-19 pandemic has caused the Company’s financial difficulties, leading to the need for business reorganisation and the retrenchment of her and 5 other employees.
- The Claimant was dismissed through retrenchment by the Company on 15th May 2021.
- Interestingly, the Claimant was an expectant mother and the Company served the termination notice during her maternity leave.
- The Claimant argued that her termination was unjustified and that the Company engaged in unfair labour practices.
The Findings:
- The Company claimed to have followed a selection process for retrenchment, but there is no documentation to support this claim.
- Despite the Company claimed her role was redundant, the Claimant’s job responsibilties continued to exist as she also served other companies within the group, and the Company hired new employees.
The Outcome:
- The Court was not convinced that the retrenchment was carried out in good faith, leading the Court to conclude that the Claimant was indeed dismissed without just cause or excuse.
- As a result, the Claimant was awarded 24 months of her last drawn wages.
Although the Covid-19 pandemic has brought challenges to many businesses, it should not be used as a blanket excuse for retrenching employees whose roles still exist within the company simply due to a downward trend in business.
Be fair to the employee. Be fair to the employer. And remember, the employee always come first. Then, all will be alright.
#DismissalGoneWrong #BebelEmploymentAct #AuntyHR
Be Fair with Me @Sim Ling KU
* Names have been modified.
