RIMAKMUR SDN. BHD. 1. ) MAHKAMAH PERUSAHAAN MALAYSIA 2. ) NEERAJ CHHABRA A/L ASHOK KUMAR CHHABRA (NRIC NO: 780202-14-5997)

RIMAKMUR SDN. BHD. 1. ) MAHKAMAH PERUSAHAAN MALAYSIA 2. ) NEERAJ CHHABRA A/L ASHOK KUMAR CHHABRA (NRIC NO: 780202-14-5997)

The High Court held the Industrial Court's finding that non-payment of the disputed commission amounted to constructive dismissal was perverse and irrational: commission payments were governed by a management-determined Sales Commission Structure requiring collection within 180 days and a contemporaneous memo to deviate; the claimant failed to discharge the burden of proof for any managerial waiver; Section 30(5) IRA does not justify overriding management prerogative; commission is not salary and non-payment did not constitute a fundamental breach; accordingly the Industrial Court Award was quashed.

Citation
WA-25-339-11-2018 (Mahkamah Tinggi)
Parties
Applicant (wa 25 339 11/2018): Rimakmur Sdn. Bhd.; 1st Respondent: Mahkamah Perusahaan Malaysia; 2nd Respondent (and Applicant in WA 25 331 11/2018): Neeraj Chhabra a/l Ashok Kumar Chhabra
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 February 2020
Case Number
WA-25-339-11-2018 (Mahkamah Tinggi)
Procedural Posture
Judicial Review (certiorari and Mandamus) / Judgment
Outcome
High Court allowed Rimakmur's judicial review, quashed Industrial Court Award No.1917/2018 dated 13.8.2018; dismissed related Neeraj application.
Legal Topics
Constructive Dismissal, Commission Dispute, Industrial Court Award, Section 30(5) Industrial Relations Act, Burden of Proof
Source Language
Malay/English
Employment Law Industrial Relations Administrative Law Contract Law Judicial Review Constructive Dismissal Commission Dispute Industrial Court Award +2 more

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Parties

Rimakmur Sdn. Bhd.

Applicant (wa 25 339 11/2018)

Mahkamah Perusahaan Malaysia

1st Respondent

Neeraj Chhabra a/l Ashok Kumar Chhabra

2nd Respondent (and Applicant in WA 25 331 11/2018)

Procedural Posture

Judicial Review (certiorari and Mandamus) / Judgment

Legal Issues

  1. 1 Whether failure to pay disputed commission amounted to a fundamental breach going to the root of the employment contract
  2. 2 Whether the Industrial Court erred in applying Section 30(5) IRA 1967 to override the employer's management prerogative and dispensed with contemporaneous documentary proof
  3. 3 Whether the claimant waived or abandoned his right by delay and premature resignation

Ratio Decidendi

The High Court held the Industrial Court's finding that non-payment of the disputed commission amounted to constructive dismissal was perverse and irrational: commission payments were governed by a management-determined Sales Commission Structure requiring collection within 180 days and a contemporaneous memo to deviate; the claimant failed to discharge the burden of proof for any managerial waiver; Section 30(5) IRA does not justify overriding management prerogative; commission is not salary and non-payment did not constitute a fundamental breach; accordingly the Industrial Court Award was quashed.

Court Disposition

High Court allowed Rimakmur's judicial review, quashed Industrial Court Award No.1917/2018 dated 13.8.2018; dismissed related Neeraj application.

Orders

  • Order of certiorari quashing Award No.1917 of 2018 dated 13.8.2018 (Kuala Lumpur Industrial Court Case No.23(14)/4-777/16).
  • Applicant's (Rimakmur Sdn. Bhd.) judicial review application allowed.