ILR Bulletin, Vol 11 2006
28 September 2006

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INDUSTRIAL LAW  REPORTS ISSUE 7 of 2006

COMPANY LAW

Receivership - Holding company - Separate legal entity - Whether affects company
Autoways (M) Sdn Bhd v. National Union Of Employees In Companies Manufacturing Rubber Products
(Yamuna Menon) [2006] 3 ILR 1672

CONTRACT OF EMPLOYMENT

Duration of - Conduct of claimant - Commencement of employment before receiving fixed term contract - Effect of
Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

Fixed-term contract - Medical leave from non approved clinics - Not term of contract - Bare assertion by company - Whether proven
Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

Illegality - Against public policy - Enforceability of - Attempt to evade local tax laws - Contract of employment not disclosing full salary of claimant - Salary paid in two jurisdictions - Contracts Act 1950, s. 24
Lilly Industries (M) [2006] 3 ILR Sdn Bhd v. Billy Wayne Selsor
(N Rajasegaran) [2006] 3 ILR 1507

Salary payable - Conduct of claimant - Commencement of employment before receiving fixed term contract - Effect of
Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

DISMISSAL

Absent Company/Receivers & Managers - Company/Receivers & Managers duly informed of court date - Company wound-up - Effect of - Industrial Relations Act 1967, s. 29(d)
Leo Fasteners Sdn Bhd v. Ridzuan Jusoh
(Chew Soo Ho) [2006] 3 ILR  1683

Absenteeism - Knowledge of intention to be absent from shift - Unclear instructions from management - True intention of management - Suspension letter issued on same day - Whether bona fide – Industrial Relations Act 1967, s. 20(3)
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Alleged misconduct of claimant - Respectful conduct of claimant - Management’s irritation at claimant’s dissenting letters - Vague charges preferred - Insufficient evidence adduced - No prima facie case - Bona fide’s of management’s actions - Industrial Relations Act 1967, s. 20(3)
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Amicable settlement - Agreement to retire - Severance package and contractual post given - Section 20 representation lodged - Conduct of claimant - Misleading - Conflict of interest - Prejudice suffered by company - Condonation by company - Whether exists - Company acting within reasonable time - Whether dismissal with just cause and excuse - Industrial Relations Act 1967, s. 20(3)
Zainal Abidin Abdul Majeed v. Glaxo Wellcome (M) Sdn Bhd
(Rajendran Nayagam) [2006] 3 ILR 1535

Breach of company rules and policies - Theft - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
Jul Arshad v. Sabah Forest Industries Sdn Bhd
(P Iruthayaraj D Pappusamy) [2006] 3 ILR 1689

Criminal conviction in court - Failure to inform employer - Effect of - Termination based on conviction - Whether permissible - Appeal against conviction lodged - Participation in trade union activities - Whether held against claimant - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, ss. 20(3), 30(5), Penal Code s. 354
Celcom (M) Bhd v. Afandi Mohamed Mukry
(Amelia Tee Hong Geok Abdullah) [2006] 3 ILR 1649

Fixed-term contract - Expiry - Effect of - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, ss. 20(3), Evidence Act 1950, ss. 101, 103 Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

Insubordination - Challenging authority of employer - Reputation damaged - Trust and confidence of employer - Effect of - Industrial Relations Act 1967, s. 20(3)
Top Franchise Sdn Bhd v. Lee Jun Weng
(Rajendran Nayagam) [2006] 3 ILR 1677

Misconduct - Complaint lodged by victim - Final warning given by company - Whether precluded company from dismissing claimant on conviction - Conduct of company
Celcom (M) Bhd v. Afandi Mohamed Mukry
(Amelia Tee Hong Geok Abdullah) [2006] 3 ILR 1649

Misconduct - Absence from workplace without permission - Extended lunch breaks - Prior warnings given - Whether constituted breach of company/factory rules - Implications - Industrial Relations Act 1967, s. 20(3)
Jul Arshad v. Sabah Forest Industries Sdn Bhd
(P Iruthayaraj D Pappusamy) [2006] 3 ILR 1689

Misconduct - Confession admitting to misconduct - Retraction - Whether permissible - Domestic Inquiry duly conducted - Appeal against Domestic Inquiry findings - No objection taken to conduct of inquiry - Whether de novo trial necessary in court - Whether prima facie case made against claimant - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
Telekom Malaysia Berhad v. Mailvaganam Saminathan
(Franklin Goonting) [2006] 3 ILR 1496

Misconduct - Criminal offence - Whether Domestic Inquiry duly conducted - Whether Domestic Inquiry findings can be used - Whether prima facie case made against claimant - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
Jul Arshad v. Sabah Forest Industries Sdn Bhd
(P Iruthayaraj D Pappusamy) [2006] 3 ILR 1689

Misconduct - Hearsay evidence - Legal effect - Whether acceptable proof - Mixing patient blood samples - Seriousness of - Failure to report to authorities - Company participation/knowledge - Damaging to patients - Idea originated from - Who benefited the most - Industrial Relations Act 1967, ss. 20(3), 30(5)
Lifeline Laboratories v. Tan Gi Bee
(Syed Ahmad Radzi Syed Omar) [2006] 3 ILR 1637

Notice of termination - Issued by - Who constituted the employer - Joint employers - Cessation of operations by one employer - Impact of - Frustration of contract - Successors - in - title - Who constitutes - Factors to consider - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, ss. 20(3), 30(5) & Immigration Regulations 1963, r. 9
Quality Bakers (M) Sdn Bhd & Ors v. Terence Philip Bridewell
(Yeoh Wee Siam) [2006] 3 ILR 1457

Notice of termination - No reasons stated for termination - No oral or written warnings prior to dismissal - Effect of – Whether mala fides present - Whether dismissal without just cause or excuse – Industrial Relations Act 1967, ss. 20(3)
Leo Fasteners Sdn Bhd v. Ridzuan Jusoh
(Chew Soo Ho) [2006] 3 ILR 1683

Notice of termination - No reasons stated for termination - Reasons stated in letter sent after call for conciliation by Industrial Relations Department - Whether need to reply - Effect of - Correct procedure - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, ss. 20(3), 30(5)
Lifeline Laboratories v. Tan Gi Bee
(Syed Ahmad Radzi Syed Omar) [2006] 3 ILR 1637

Performance - Alleged unsatisfactory performance - No evidence adduced - Confusion as to who immediate superior was - Appraisal by superior - Bona fides of dismissal - Whether reasonable under circumstances - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Performance - Failure to perform responsibilities diligently - Effect on company - Financial crisis - Appointment of new person to assume duties - Dissatisfaction of claimant - Strong language used on employer - Dismissal - Whether dismissal with just cause and excuse - Industrial Relations Act 1967, s 20(3) [2006] 3 ILR
Top Franchise Sdn Bhd v. Lee Jun Weng
(Rajendran Nayagam) [2006] 3 ILR 1677

Probationer - Termination before expiry of probation period - Whether company entitled to - Effect of - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
Leo Fasteners Sdn Bhd v. Ridzuan Jusoh
(Chew Soo Ho) [2006] 3 ILR 1683

Probationer - Whether probationer or confirmed employee - Test to be applied - Conduct of company - Treatment of confirmed employee - Industrial Relations Act 1967, s. 20(3)
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Retrenchment - Fair Procedure - Code of conduct for Industrial Harmony - Legal Effect - Applicability of - Blatant disregard of - Effect of - Whether actions of company bona fide - Industrial Relations Act 1967, ss. 20(3) [2006] 3 ILR and 30(5)
Lilly Industries (M) Sdn Bhd v. Billy Wayne Selsor
(N Rajasegaran) [2006] 3 ILR 1507

Retrenchment - Redundancy - Whether company needs to be in financial dire straits - Selection for redundancy - LIFO principles - Applicability of - Reorganization of company - Another person employed to fill position earlier held by claimant - Bona fides of dismissal - Whether reasonable under circumstances - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, s. 20(3)
Lilly Industries (M) Sdn Bhd v. Billy Wayne Selsor
(N Rajasegaran) [2006] 3 ILR 1507

Sexual misconduct - Close proximity/khalwat - Legal definition - Refusal by bank to answer questions posed - Seeking determination on substantive aspects anly - Whether proper - Industrial Relations Act 1967, s. 33A
Aziz Yaakob v. Bank Muamalat Malaysia Bhd
(Franklin Goonting) [2006] 3 ILR 1561

DOMESTIC INQUIRY

Absence of - Whether necessary - Whether defect in proceedings - Criminal conviction in court - Effect of
Celcom (M) Bhd v. Afandi Mohamed Mukry
(Amelia Tee Hong Geok Abdullah) [2006] 3 ILR 1649

EVIDENCE

Adverse inference - Non-production of material witness - No rebuttal of allegations - Effect of - Evidence Act 1950, s. 114(g)
Lifeline Laboratories v. Tan Gi Bee
(Syed Ahmad Radzi Syed Omar) [2006] 3 ILR 1637

Burden of proof - Allegation of financial difficulty being faced by company - Whether company has successfully discharged the burden
Autoways (M) Sdn Bhd v. National Union Of Employees In Companies Manufacturing Rubber Products
(Yamuna Menon) [2006] 3 ILR 1672

Burden of proof - Whether burden of proof shifts with interrogatories - Industrial Relations Act 1967, s. 20(1)
Yano Electronics (M) Sdn Bhd v. Fazila Bahadin
(Tan Yeak Hui) [2006] 3 ILR 1570

Documentary evidence - Domestic Inquiry findings - Usage and reliance on - Improperly held Domestic Inquiry - Effect of
Jul Arshad v. Sabah Forest Industries Sdn Bhd
(P Iruthayaraj D Pappusamy) [2006] 3 ILR 1689

Standard of proof for criminal misconduct - Balance of probabilities - Test to be applied to employers
Jul Arshad v. Sabah Forest Industries Sdn Bhd
(P Iruthayaraj D Pappusamy) [2006] 3 ILR 1689

Witnesses testimony - Conflicting evidence - Evasive testimony - Credibility of witnesses for the company - Convenient memory of witnesses
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

INDUSTRIAL COURT

Ex parte proceedings - Two limbs of s. 29(1) - Failure to satisfy both limbs - Whether court can proceed ex parte regardless - Industrial Relations Act 1967, s. 29(d)
Quality Bakers (M) Sdn Bhd & Ors v. Terence Philip Bridewell
(Yeoh Wee Siam) [2006] 3 ILR 1457

Jurisdiction - Islamic/Syariah Law - Bank seeking to switch to an all muslim panel - Whether entitled - Correctness of - Intention of bank - Disqualification of current bench, seeking - Industrial Relations Act 1967, s. 33A, Syariah Court Evidence (Federal Territories) Act 1997, s. 83
Aziz Yaakob v. Bank Muamalat Malaysia Bhd
(Franklin Goonting) [2006] 3 ILR 1561

Jurisdiction - Territorial jurisdiction - Overseas Employer - Industrial Relations Act 1967
Quality Bakers (M) Sdn Bhd & Ors v. Terence Philip Bridewell
(Yeoh Wee Siam) [2006] 3 ILR 1457

Jurisdiction - Whether within - Not specifically provided for in Industrial Relations Act 1967 - Four corners of the statute - Interpretation of - Industrial Relations Act 1967, ss. 28, 29(c), 29(g) & Rules of the High Court 1980 Order 26
Yano Electronics (M) Sdn Bhd v. Fazila Bahadin
(Tan Yeak Hui) [2006] 3 ILR 1570

Procedure - Interrogatories - Application for - Court of equity - Not subject to legal form and technicalities - Saving of time and costs to disputants - Industrial Relations Act 1967, ss. 20(3), 28, 29(c), 29(g)  & Rules of the High Court 1980 O. 26
Yano Electronics (M) Sdn Bhd v. Fazila Bahadin
(Tan Yeak Hui) [2006] 3 ILR 1570

Procedure - Locus standi of company solicitors - Objection to - Right of company to representation - Issues of law - Rules of natural justice - Permission of court - Preliminary objection - Industrial Relations Act 1967, ss. 20(3), 27(1)(d) & Industrial Court Rules 1967 r. 3
Manjit Kaur Gurbachan Singh v. Dergahayu Sendirian Berhad
(Yamuna Menon) [2006] 3 ILR 1488

Procedure - Parties - Disjoinder - Nexus - Unity of group enterprise - Jurisdiction of Industrial Court - Industrial Relations Act 1967, s. 20(3)
Norazah Abdul Rashid v. Anjur Dinamik Sdn Bhd & Anor
(Susila Sithamparam) [2006] 3 ILR 1551

Procedure - Parties - Disjoinder - Nexus - Assumption of liabilities - Effective when - Conflicting clauses in agreement - Intention of parties - Contra proferentum rule - Interpretation of - Saving clause - Industrial Relations Act 1967, s. 20(3)
Pih Marco Shoe Manufacturing Sdn Bhd & Ors v. Balasingam Arumugam
(Tan Yeak Hui) [2006] 3 ILR 1665

Procedure - Pleadings - Amendment of - Oral amendment - Application made on morning of trial - Whether an afterthought - Taking claimant by surprise - Unrepresented claimant - Failure to cross-examine on issue not to be held against claimant.
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Procedure - Reference to High Court - Qualification of - Questions of Syariah Law - Matter of discretion not right - Industrial Relations Act 1967, s. 33A, Syariah Court Evidence (Federal Territories) Act 1997, s. 83
Aziz Yaakob v. Bank Muamalat Malaysia Bhd
(Franklin Goonting) [2006] 3 ILR 1561

Remedies - Compensation - Fixed-term contract
Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

Remedies - Compensation - Quantum of damages - Assessment of - Limitation to claim for backwages - Practise direction 1/87 - Effect of - Compensation in lieu of reinstatement - Who Entitled - Industrial Relations Act 1967, s. 20(3)
Tsuritani (M) Sdn Bhd, Melaka v. Sha’ari Sahat & Ors
(Sauffee Afandi Mohamad) [2006] 3 ILR 1554

Remedies - Fixed term contract - What constitutes a suitable remedy - Compensation awarded - Computation of - Industrial Relations Act 1967, ss. 20(3)
Lilly Industries (M) Sdn Bhd v. Billy Wayne Selsor
(N Rajasegaran) [2006] 3 ILR 1507

Remedies - Quantum of payment - Whether benefits - in - kind part of salary package - Computation of monthly wages
Lilly Industries (M) Sdn Bhd v. Billy Wayne Selsor
(N Rajasegaran) [2006] 3 ILR 1507

Remedies - Reinstatement - Not suitable - Industrial Harmony - Compensation awarded - Industrial Relations Act 1967, s. 20(3)
AK Mohd Kassim Pg Mohd Tajudin v. Sabah Forest Industries Sdn Bhd
(Yamuna Menon) [2006] 3 ILR 1587

Remedies - Restitution - Whether proven - Failure of company to rebut convincingly
Malaysian Airline System Bhd v. Karthigesu V Chinnasamy
(N Rajasegaran) [2006] 3 ILR 1478

INTERPRETATION

Collective agreement - Inclusive or exclusionary interpretation - Past practice - Intention of parties - Distinction between retirement and dismissal - Article on retirement benefits payable - Who can claim - Industrial Relations Act 1967, s. 33(1)
Consolidated Plantation Sdn Bhd v. National Union Of Commercial Workers
(Chew Soo Ho) [2006] 3 ILR 1542

NON-COMPLIANCE

Collective agreement - Interpretation of articles - Expiry of duration of collective agreement - Effect of - Saving clause -Company still paying bonuses after expiry - Implications - Industrial Relations Act 1967, s 56(1)
Autoways (M) Sdn Bhd v. National Union Of Employees In Companies Manufacturing Rubber Products
(Yamuna Menon) [2006] 3 ILR 1672

REMEDIES

Compensation most suitable as company wound up - Global compensation - How computed - Period of service of claimant brief - Post dismissal income of claimant - Industrial Relations Act 1967
Leo Fasteners Sdn Bhd v. Ridzuan Jusoh
(Chew Soo Ho) [2006] 3 ILR 1683

TRADE DISPUTE

Collective Agreement - Terms and conditions of service - Interpretation of articles on annual leave and bonus payments - Industrial Relations Act 1967, s. 26(2) and Employment Act 1955 s. 60E(1)(c)
All Malayan Estates Staff Union (AMESU) v. Nova Scotia Palm Oil Mill
(Soo Ai Lin) [2006] 3 ILR 1577

CASE OF THE WEEK

CHANDRA SEKARAN MURUGESU v. MENTAKAB VENEER & PLYWOOD SDN BHD

DISMISSAL: Victimisation and harassment - Multiple acts - Whether proven - Effect of - Whether dismissal without just cause or excuse - Industrial Relations Act 1967, ss. 20(3)

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