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LLB Bulletin #4/2025 9 April 2025

CASE HIGHLIGHTS

LIM SZE KAI v. HKBN JOS (MALAYSIA) SDN BHD
INDUSTRIAL COURT, KUALA LUMPUR
SYED NOH SAID NAZIR
AWARD NO. 326 OF 2025 [CASE NO: 21-4-2304-20]
5 MARCH 2025

AbstractAn employer cannot unilaterally impose new, less favorable terms of employment, especially those that include illegal clauses, such as a non-competition clause that violates s. 28 of the Contracts Act 1950, as in this case. An employee’s refusal to accept such unlawful changes does not constitute a valid reason for termination.

LABOUR LAW: Employment – Termination – Employer sought to vary employee’s existing terms of employment – Variation less favourable to employee visà- vis original terms of employment – Employer unilaterally and arbitrarily inserted and added in new terms of employment which were not contained in original terms – Clauses on competition and non-solicitation – Employee reluctant to sign – Employer unilaterally interpreted employee’s non-signing as intention not to continue employment – Employee terminated from employment – Whether employee’s non-signing of revised terms and conditions amounted to intention to no longer be bound by his contract of employment – Whether gave rights to employer to terminate employee – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)

CONTRACT: Employment contract – Terms and condition – Variation – Restraints of trade – Employer sought to vary employee’s existing terms of employment – Variation less favourable to employee vis-à-vis original terms of employment – Employer unilaterally and arbitrarily inserted and added in new terms of employment which were not contained in original terms – Clauses on competition and non-solicitation – Employee reluctant to sign – Employer unilaterally interpreted employee’s non-signing as intention not to continue employment – Employee terminated from employment – Whether employee’s non-signing of revised terms and conditions amounted to intention to no longer be bound by his contract of employment – Whether gave rights to employer to terminate employee – Contracts Act 1950, s. 28

GOLDA FIONA P ARONY PEREIRA v. MCD BACK OFFICE SDN BHD
INDUSTRIAL COURT, SARAWAK
MOHD TAUFIK MOHD YUSOFF
AWARD NO. 349 OF 2025 [CASE NO: 8(5)-4-636-22]
10 MARCH 2025

AbstractIn cases of restructuring plan leading to termination, the employer must show how the restructuring was done, how many employees were affected by the exercise and whether there was a distribution of work to the remaining employees in order to demonstrate the employer was really in need of cutting down the number of employees to overcome financial strain.

LABOUR LAW: Employment – Dismissal – Restructuring plan – Employee terminated without prior discussion or formal meeting – Employer cited restructuring plan as reason for employee’s termination – Whether employer had demonstrated how restructuring exercise was done and how many employees were affected by exercise – Whether there was distribution of work to remaining employees – Whether employer had shown it was really in need of cutting down employees to overcome financial strain – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)

LABOUR LAW: Employment – Dismissal – Poor performance – Employee terminated due to poor performance – Employer gave choice to all staff to accept higher key performance index (‘KPI’) or end employment voluntarily – Employee chose to accept higher KPI but failed to perform or underperformed based on revised KPI – Whether poor performance established – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)

LABOUR LAW: Employment – Dismissal – Insubordination – Employee terminated due to insubordination – Allegations that employee disobedient and disregarded comments and advice from superiors to improve performance – Whether insubordination proven – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)

LATEST CASES (ILR Issue 3 of 2025)

Award Parties Citation Links
  Saharunzaman Barun v. Perodua Sales Sdn Bhd & Anor And Other Appeals
[Civil Appeal Nos: W-01(A)-473-08-2021, W-01(A)-477-08-2021 & W-01(A)-478-08-2021]
[2025] 1 ILR 449 cljlaw
labourlaw
  Masyur Mutiara Sdn Bhd lwn. PP
[Rayuan Jenayah Nos: KA-41S-13-11-2019 & KA-41S-15-11-2019]
[2025] 1 ILR 481 cljlaw
labourlaw
290/2025 Mohd Rizal Shaharudin lwn. Tekun Nasional
[No. Kes: 22(20)-4-329-22]
[2025] 1 ILR 497 cljlaw
labourlaw
304/2025 Abdul Kadir Hj Abdullah v. Sabah Oil & Gas Development Corporation Sdn Bhd
[Case No: 17-4-1021-23]
[2025] 1 ILR 515 cljlaw
labourlaw
322/2025 Mohammed Rishi Md Ross v. Petroliam Nasional Berhad (Petronas)
[Case No: 3-4-1417-21]
[2025] 1 ILR 530 cljlaw
labourlaw
326/2025 Lim Sze Kai v. HKBN JOS (Malaysia) Sdn Bhd
[Case No: 21-4-2304-20]
[2025] 1 ILR 556 cljlaw
labourlaw
349/2025 Golda Fiona P Arony Pereira v. MCD Back Office Sdn Bhd
[Case No: 8(5)-4-636-22]
[2025] 1 ILR 572 cljlaw
labourlaw
375/2025 Yap Cheng Hong v. Universal Corporate Services Sdn Bhd
[Case No: 4-4-1431-23]
[2025] 1 ILR 584 cljlaw
labourlaw
389/2025 Brando Paul Raj Pillai v. The Grace Academy Sdn Bhd
[Case No: 7/4- 1913-21]
[2025] 1 ILR 603 cljlaw
labourlaw
403/2025 Foo Tze Jin v. IPI Sendirian Berhad
[Case No: 12(5)-4-1211-23]
[2025] 1 ILR 619 cljlaw
labourlaw

SUBJECT INDEX

APPEAL/REVIEW UPDATES

1. Saharunzaman Barun v Perodua Sales Sdn Bhd & Anor And Other Appeals [2025] 1 ILR 449 (COA) overruling High Court decision in Perodua Sales Sdn Bhd v Mahkamah Perusahaan Malaysia & Anor [2022] CLJU 2371; [2022] 1 LNS 2371









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