Mohd Razif Bin Zainal Abidin 1. ) Perodua Sales Sdn Bhd 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

Mohd Razif Bin Zainal Abidin 1. ) Perodua Sales Sdn Bhd 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

The Court of Appeal held that where a transfer clause expressly requires transfers to be 'reasonably directed by the Company' that reasonableness is an express contractual term to be applied within the contract test for constructive dismissal; applying that test to the facts, the Company’s conduct (mandatory resignations to join NAM, abrupt 3‑day transfer notices to distant posts, failure to secure work permits, and lack of transparency about vacancies) evidenced mala fides and a repudiatory breach so the Industrial Court’s awards for constructive dismissal were reinstated and the High Court’s quashing of those awards set aside.

Citation
W-01(A)-478-08/2021 (Mahkamah Rayuan)
Parties
Appellant/perayu: Saharunzaman bin Barun; Appellant/perayu: Noramidah bt Othman @ Anuar; Appellant/perayu: Mohd Razif bin Zainal Abidin; Respondent/pemohon: Perodua Sales Sdn Bhd; Respondent/second Respondent: Mahkamah Perusahaan Malaysia
Court
A
Jurisdiction
Malaysia
Judgment Date
2 December 2024
Case Number
W-01(A)-478-08/2021 (Mahkamah Rayuan)
Procedural Posture
Civil Appeals From High Court Quashing Industrial Court Awards (industrial Relations/constructive Dismissal) / Court of Appeal Decision on Appeal (judgment)
Outcome
Appeals allowed. High Court orders quashing Industrial Court Awards set aside. Industrial Court Awards reinstated for each appellant. Costs awarded.
Legal Topics
Constructive Dismissal, Transfer of Employment, Managerial Prerogative, Contract Test Vs Reasonableness, Illegality (work Permit), Burden of Proof
Source Language
Malay/English
Employment Law Industrial Relations Administrative Law Immigration Law Contract Law Constructive Dismissal Transfer of Employment Managerial Prerogative +3 more

Case Brief

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Parties

Saharunzaman bin Barun

Appellant/perayu

Noramidah bt Othman @ Anuar

Appellant/perayu

Mohd Razif bin Zainal Abidin

Appellant/perayu

Perodua Sales Sdn Bhd

Respondent/pemohon

Mahkamah Perusahaan Malaysia

Respondent/second Respondent

Procedural Posture

Civil Appeals From High Court Quashing Industrial Court Awards (industrial Relations/constructive Dismissal) / Court of Appeal Decision on Appeal (judgment)

Legal Issues

  1. 1 Whether a transfer clause containing 'reasonably directed by the Company' incorporates a contractual reasonableness requirement to be applied within the contract test for constructive dismissal
  2. 2 Whether the Company’s conduct in the transfer exercise was mala fide or for a collateral purpose evincing intention not to be bound by the contract
  3. 3 Whether absence of required work permits renders the transfer exercise illegal and vitiates the Company’s disciplinary response

Ratio Decidendi

The Court of Appeal held that where a transfer clause expressly requires transfers to be 'reasonably directed by the Company' that reasonableness is an express contractual term to be applied within the contract test for constructive dismissal; applying that test to the facts, the Company’s conduct (mandatory resignations to join NAM, abrupt 3‑day transfer notices to distant posts, failure to secure work permits, and lack of transparency about vacancies) evidenced mala fides and a repudiatory breach so the Industrial Court’s awards for constructive dismissal were reinstated and the High Court’s quashing of those awards set aside.

Court Disposition

Appeals allowed. High Court orders quashing Industrial Court Awards set aside. Industrial Court Awards reinstated for each appellant. Costs awarded.

Orders

  • Set aside High Court judgments that quashed the Industrial Court Awards
  • Reinstate the Industrial Court Awards in favour of Saharunzaman bin Barun, Noramidah bt Othman @ Anuar and Mohd Razif bin Zainal Abidin