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LLB Bulletin #7/2024 10 July 2024

LATEST CASES (ILR Issue 6 of 2024)

SUBJECT INDEX

CIVIL PROCEDURE

Judgments and orders – Restraining order – Parties entered into amicable settlement by recording consent award – Non-compliance of award by company – Complaint by complainant on non-compliance of consent award – Allegation by company that restraining order granted by High Court restrained non-compliance application by complainant – Whether restraining order relevant and applicable – Companies Act 2016, s. 368
Dalton Wen Fong Anak Simon Awang v. KNM Exotic Equipment Sdn Bhd
(Wan Jeffry Kassim) [2024] 2 ILR 648 cljlaw labourlaw

COMPANY LAW

Indoor management rule – Principle – Parties entered into amicable settlement by recording consent award – Non-compliance of award by company – Allegation by company that consent award not obtained properly since representative acted ultra vires when agreeing to award – Whether internal matter of company's management – Whether complainant entitled to rely on principle under Turquand rule
Dalton Wen Fong Anak Simon Awang v. KNM Exotic Equipment Sdn Bhd
(Wan Jeffry Kassim) [2024] 2 ILR 648 cljlaw labourlaw

CONTRACT

Contract of employment – Breach – Clause in agreement provides contract 'extendable for another two years on mutual agreement' – Whether failure by any party to agree to extension would render extension of contract impossible to implement – Whether company to write to employee at end of term for purpose of agreed extension – Whether company's unilateral decision not to extend employment contract contravened clause in agreement – Whether constituted breach of contract of employment
Terry Chan Kong Ngee v. Sabah Air Aviation Sdn Bhd
(Faridz Gohim Abdullah JC) [2024] 2 ILR 555 cljlaw labourlaw

Employment contract – Acquiescence – Employee terminated from employment due to allegations of intimidation, altercation and refusal to do work – Allegation by employee that he did not understand terms of contract – Length of time spent by employee working in company – Whether employee acquiesced to contract – Whether claimant bound by terms of employment contract
Balu Renganathan v. Asli Mechanical Sdn Bhd
(Salahudin Hidayat Shariff) [2024] 2 ILR 740 cljlaw labourlaw

Employment contract – Breach – Constructive dismissal – Applicable test – Employee expatriated to Thailand before repatriated to Malaysia – Employee claimed constructive dismissal – Applicable test in determining constructive dismissal – Whether contract test or reasonable test – Difference between tests
Tan Lay Peng v. RHB Bank Bhd & Anor
(Harmindar Singh Dhaliwal, Rhodzariah Bujang & Nordin Hassan FCJ) [2024] 2 ILR 535 cljlaw labourlaw

Employment contract – Fixed term contract – Employee enjoyed automatic renewals of employment contract without making any application of renewals – Employer issued with letter captioned 'Expiry of Contract Service' to employee after 32 years of service – Allegation of effluxion of time – Whether fixed term contracts of employment genuine fixed term contracts – Whether employee had legitimate expectation to be in employment until retirement age – Whether employee permanent employee – Whether permanent contract of employment disguised as fixed term contracts of employment
Muhamad Fawaid Daud v. Airod Sdn Bhd
(Augustine Anthony) [2024] 2 ILR 710 cljlaw labourlaw

EVIDENCE

Adverse inference – Non-calling of material witnesses – Employee charged for misconduct of negligence in discharging duties – Failure to produce relevant witnesses by the employers – Whether adverse inference ought to be invoked – Evidence Act 1950, s. 114(g)
Azmil Abu Samah v. Syarikat Perumahan Negara Bhd
(Vanithamany Sivalingam) [2024] 2 ILR 580 cljlaw labourlaw

INDUSTRIAL COURT

Award – Non-compliance – Parties entered into amicable settlement by recording consent award – Non-compliance of award by company – Whether there were special circumstances for Industrial Court to vary or set aside award – Whether consent award properly obtained – Whether financial incapability of company proven and constituted special circumstance – Industrial Relations Act 1967, s. 56(2)(a)
Dalton Wen Fong Anak Simon Awang v. KNM Exotic Equipment Sdn Bhd
(Wan Jeffry Kassim) [2024] 2 ILR 648 cljlaw labourlaw

JURISDICTION

Proper forum – Civil court – Cause of action – Breach of contract of employment – Whether claim relating to employment – Whether claim under constructive dismissal or breach of contract – Whether Industrial Court proper forum – Whether to be distinguished from case of 7-Eleven Malaysia Sdn Bhd v. Ashvine Hari Krishnan – Whether claim for breach of contract properly commenced in civil court
Terry Chan Kong Ngee v. Sabah Air Aviation Sdn Bhd
(Faridz Gohim Abdullah JC) [2024] 2 ILR 555 cljlaw labourlaw

LABOUR LAW

Employment – Dismissal – Constructive dismissal – Applicable test – Employee expatriated to Thailand before repatriated to Malaysia – Employee claimed constructive dismissal – Applicable test in determining constructive dismissal – Whether contract test or reasonable test – Difference between tests – Industrial Relations Act 1967, s. 20
Tan Lay Peng v. RHB Bank Bhd & Anor
(Harmindar Singh Dhaliwal, Rhodzariah Bujang & Nordin Hassan FCJ) [2024] 2 ILR 535 cljlaw labourlaw

Employment – Dismissal – Employment contract – Fixed term contract – Employee enjoyed automatic renewals of employment contract without making any application of renewals – Employer issued with letter captioned 'Expiry of Contract Service' to employee after 32 years of service – Allegation of effluxion of time – Whether fixed term contracts of employment genuine fixed term contracts – Whether employee permanent employee – Whether dismissal malicious and unlawful – Whether there were acts of victimisation and unfair labour practice – Whether dismissal without just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Muhamad Fawaid Daud v. Airod Sdn Bhd
(Augustine Anthony) [2024] 2 ILR 710 cljlaw labourlaw

Employment – Dismissal – Misconduct – Absenteeism – Employee scolded with vulgar language and threatened by superior – Employee upset with situation and took few days of leave – Allegation by employer that leave applications were irregular – Employee terminated from employment due to absenteeism – Whether employee complied with procedure for applying leave – Whether absenteeism genuine reason for termination – Whether employee victimised – Whether dismissal actuated by mala fide, bad labour practice and without just cause or excuse – Employment Act 1955, s. 15(2)
Sandy Subramaniam v. Esther Anuradha Health Care Services
(Rusita Md Lazim) [2024] 2 ILR 689 cljlaw labourlaw

Employment – Dismissal – Misconduct – Employee terminated from employment due to allegations of intimidation, altercation and refusal to do work – Whether allegations successfully established by employer – Whether termination with just cause and excuse – Industrial Relations Act 1976, s. 20
Balu Renganathan v. Asli Mechanical Sdn Bhd
(Salahudin Hidayat Shariff) [2024] 2 ILR 740 cljlaw labourlaw

Employment – Dismissal – Misconduct – Punishment – Proportionality – Claimant was alleged negligent in discharging duties – Claimant dismissed from employment – Whether dismissal with just cause or excuse Whether punishment too severe – Whether punishment proportionate to the alleged misconduct – Whether reinstatement proper remedy – Industrial Relations Act 1967, ss. 20(3), 30(5), 30(6A)
Azmil Abu Samah v. Syarikat Perumahan Negara Bhd
(Vanithamany Sivalingam) [2024] 2 ILR 580 cljlaw labourlaw

Employment – Employee – Independent non-executive director of companies – Whether independent non-executive director employee – Whether there was master-servant relationship – Whether received monthly salary and common employees' benefits from companies – Income Tax Act 1967, ss. 2 & 4(b)
Datuk Oh Chong Peng v. Ketua Pengarah Hasil Dalam Negeri
(Ahmad Kamal Md Shahid J) [2024] 2 ILR 509 cljlaw labourlaw

Employment – Probationer – Allegation of wrongful dismissal – Probationer served with employer before being retrenched on ground of redundancy – Status of probationer – Whether probationer remained probationer until retrenched – Whether there was absolute confirmation by company – Whether there was wrongful dismissal – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Chong Poh Lum v. Pastel Glove Sdn Bhd
(Zulhelmy Hasan) [2024] 2 ILR 662 cljlaw labourlaw

Employment – Resignation – Forced resignation – Hostile behaviour of superior towards subordinate – Subordinate told by superior to tender resignation – Superior dictated terms of resignation and threatened subordinate's replacement and non-payment of salary – Subordinate relented and resigned – Whether subordinate forced to resign from employment – Whether dismissal done with just cause or excuse – Industrial Relations Act 1967, s. 20(3)
Nizatul Asmar Chek Umar v. Petaling Jaya Dairy Sdn Bhd
(Paramalingam J Doraisamy) [2024] 2 ILR 624 cljlaw labourlaw

Employment – Retrenchment – Allegation of wrongful dismissal – Probationer served with employer before being retrenched on ground of redundancy – Whether there was genuine need for re-organisation exercise by employer – Whether genuine redundancy situation had arisen which led to retrenchment of probationer – Whether company had complied with accepted standards and procedures when selecting and retrenching probationer – Whether there was wrongful dismissal – Whether employer acted mala fide – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Chong Poh Lum v. Pastel Glove Sdn Bhd
(Zulhelmy Hasan) [2024] 2 ILR 662 cljlaw labourlaw

Trade union – Trade dispute – Dispute on work schedule – Employer unilaterally changed working shift pattern, causing rest days to be reduced from 85 days to 52 days per year – Employees/members of Union deprived of 33 days of rest days per year – Whether in line with articles of collective agreement – Whether breached memorandum of understanding entered into between parties – Whether change fair, reasonable and equitable – Employment Act 1995, ss. 7, 7A & 59
Continental Tyre PJ Malaysia Sdn Bhd Employees Union v. Continental Tyre PJ Malaysia Sdn Bhd
(Zalina Awang) [2024] 2 ILR 595 cljlaw labourlaw

REVENUE LAW

Income tax – Assessment – Notices of additional assessments raised against taxpayer – Taxpayer independent non-executive director – Whether taxpayer employee of companies – Whether director fees, allowances and consultancy fees should be subject to income tax as employment income – Whether taxpayer acted negligently and filed incorrect tax returns – Whether assessments time-barred – Whether penalty imposed on taxpayer correct – Income Tax Act 1967, ss. 2, 4(b) & 91(3)
Datuk Oh Chong Peng v. Ketua Pengarah Hasil Dalam Negeri
(Ahmad Kamal Md Shahid J) [2024] 2 ILR 509 cljlaw labourlaw

STATUTORY INTERPRETATION

Definition – 'Employee' – Income Tax Act 1967, s. 2 – Whether independent non-executive director of companies employee
Datuk Oh Chong Peng v. Ketua Pengarah Hasil Dalam Negeri
(Ahmad Kamal Md Shahid J) [2024] 2 ILR 509 cljlaw labourlaw

TRADE DISPUTE

Collective agreement – Dispute on work schedule – Employer unilaterally changed working shift pattern, causing rest days to be reduced from 85 days to 52 days per year – Employees/members of Union deprived of 33 days of rest days per year – Whether in line with articles of collective agreement – Whether breached memorandum of understanding entered into between parties – Whether change fair, reasonable and equitable – Employment Act 1995, ss. 7, 7A & 59
Continental Tyre PJ Malaysia Sdn Bhd Employees Union v. Continental Tyre PJ Malaysia Sdn Bhd
(Zalina Awang) [2024] 2 ILR 595 cljlaw labourlaw

WORDS & PHRASES

'extendable for another two years on mutual agreement' – Meaning of – Whether requires agreement of both parties – Whether failure by any party to agree to extension would render extension of contract impossible to implement – Whether subject to process and procedure agreed by parties
Terry Chan Kong Ngee v. Sabah Air Aviation Sdn Bhd
(Faridz Gohim Abdullah JC) [2024] 2 ILR 555 cljlaw labourlaw

INDEKS PERKARA

UNDANG-UNDANG BURUH

Pekerjaan – Pihak menuntut diarahkan untuk melakukan kerja-kerja tidak berpadanan dengan jawatan – Syarikat menamatkan perkhidmatan pihak menuntut atas alasan kemerosotan prestasi – Sama ada tindakan-tindakan syarikat menyokong pengataan bahawa prestasi pihak menuntut merosot – Sama ada penamatan kerja pihak menuntut adalah atas sebab dan alasan yang munasabah – Sama ada penamatan perkhidmatan adil – Akta Perhubungan Perusahaan 1967, s. 20(3) & 30(5)
Goh Simin lwn. Batch Technologies Sdn Bhd
(Azwarnida Affandi) [2024] 2 ILR 610 cljlaw labourlaw

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