Labourlaw Bulletin

LABOURLAW BULLETIN #6/2025


WHAT'S NEW
Case Highlight

NOOR ERDAWATI SALLEH v. NS SENG SDN BHD
INDUSTRIAL COURT, PENANG
JEYASEELEN T ANTHONY
AWARD NO. 594 OF 2025 [CASE NO: 18-4-353-24]
24 APRIL 2025

AbstractAn employer retains the right to dismiss a probationer for unsatisfactory work performance, provided that the employer has genuinely assessed the probationer’s performance against the company’s requirements and expectations, and the dismissal is not carried out capriciously, arbitrarily, or with mala fide intention. Serious dereliction of duty and failure to meet the expected standards for the role, even after a probationary extension, constitutes just cause and excuse for dismissal.

LABOUR LAW: Employment – Dismissal – Probationer – Unsatisfactory work performance – Probationer failed to pass probationary period and dismissed from employment – Whether unsatisfactory work performance established – Whether probationer’s performance met employer’s requirements and expectations – Whether there was dereliction of duty – Whether probationer dismissed with just cause and excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)


JALIMIN MAMPUR v. EMPADA SDN BHD
INDUSTRIAL COURT, SABAH
INDRA AYUB
AWARD NO. 735 OF 2025 [CASE NO: 17/4-1594-22]
8 MAY 2025

AbstractAn employer facing genuine financial difficulties that necessitate a business reorganisation, including redundancy, is justified in terminating an employee’s service. Furthermore, the employer is not obligated to provide prior warning of the retrenchment or offer alternative employment within the company.

LABOUR LAW: Employment – Dismissal – Retrenchment – Redundancy – Employee dismissed from employment due to redundancy – Allegation by employer that there were financial difficulties – Whether employer facing financial difficulties – Whether there was redundancy – Whether termination with just cause or excuse – Whether retrenchment justified – Industrial Relations Act 1967, ss. 20(3) & 30(5) – Labour (Termination and Layoff Benefits) (Sabah) Rules 2008 – Sabah Labour Ordinance


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