A. GILBERT D’CRUZ 1. SAPURAACERGY SDN BHD 2. MAHKAMAH PERUSAHAAN MALAYSIA

A. GILBERT D’CRUZ 1. SAPURAACERGY SDN BHD 2. MAHKAMAH PERUSAHAAN MALAYSIA

Given undisputed continuous automatic renewals without breaks and considering the parties' intention, employer's conduct and nature of the work per the Federal Court test, the Court of Appeal concluded the contracts were not genuine fixed-term contracts but amounted to permanent employment; the Industrial Court erred by relying on the appellant's stated understanding of contractual wording and unsubstantiated project-based reasoning, therefore the Industrial Court Award was quashed and the matter remitted for assessment of damages.

Citation
W-01(A)-277-06/2020 (Mahkamah Rayuan)
Parties
Appellant: A. Gilbert D’Cruz; Respondent: Sapuraacergy Sdn Bhd; Respondent: Mahkamah Perusahaan Malaysia
Court
A
Jurisdiction
Malaysia
Judgment Date
13 August 2021
Case Number
W-01(A)-277-06/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (judicial Review of Industrial Court Award) / Court of Appeal Judgment
Outcome
Appeal allowed. High Court order set aside. Industrial Court Award quashed. Matter remitted to the Industrial Court for assessment of damages.
Legal Topics
Fixed Term Contract, Permanent Employment, Contract Renewal, Judicial Review, Remittal for Damages, Stare Decisis
Source Language
Malay/English
Employment Law Industrial Relations Administrative Law (judicial Review) Fixed Term Contract Permanent Employment Contract Renewal Judicial Review Remittal for Damages +1 more

Case Brief

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Parties

A. Gilbert D’Cruz

Appellant

Sapuraacergy Sdn Bhd

Respondent

Mahkamah Perusahaan Malaysia

Respondent

Procedural Posture

Civil Appeal (judicial Review of Industrial Court Award) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the appellant's contract was a genuine fixed term contract or in reality permanent employment
  2. 2 Whether successive automatic renewals without breaks convert fixed term contract into permanent employment
  3. 3 Whether the Industrial Court considered the correct and relevant factors in determining genuineness of fixed term contract

Ratio Decidendi

Given undisputed continuous automatic renewals without breaks and considering the parties' intention, employer's conduct and nature of the work per the Federal Court test, the Court of Appeal concluded the contracts were not genuine fixed-term contracts but amounted to permanent employment; the Industrial Court erred by relying on the appellant's stated understanding of contractual wording and unsubstantiated project-based reasoning, therefore the Industrial Court Award was quashed and the matter remitted for assessment of damages.

Court Disposition

Appeal allowed. High Court order set aside. Industrial Court Award quashed. Matter remitted to the Industrial Court for assessment of damages.

Orders

  • Set aside the High Court order dated 20.5.2020
  • Quash Industrial Court Award No.76 of 2019 dated 7.1.2019