WONG THIN CHEONG (RAYMOND) v. ACMAR JAYA (M) SDN BHD
INDUSTRIAL COURT, KUALA LUMPUR
ANNA NG FUI CHOO
AWARD NO. 509 OF 2013 [CASE NO: 3(28)(3)(2)(3)/4-179/05]
22 MARCH 2013

CONTRACT OF EMPLOYMENT: Terms and conditions - Retirement age - Employment contract silent on issue - Whether the company had intentionally tried to drive the claimant out of his employment after he reached retirement age - Evidence adduced - Evaluation of - Conduct of the company - Effect of - Whether proven by the claimant - Whether dismissal without just cause and excuse - Industrial Relations Act 1967, ss. 20(3) & 30(5)

CONDUCTING A RETRENCHMENT EXERCISE

No human resource practitioner enjoys terminating the services of an employee. Retrenchments are particularly unpleasant because the workers affected are blameless, yet they lose both their income and their status in society until such time as they can find another job.

Retrenchments need to be carefully planned and strategized, failing which they may actually backfire on the employer. A badly handled retrenchment exercise can cause an organisation to be sucked into a downward spiral from which it may never fully recover.

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