GAN SOON HUAT 1. SANBOS (MALAYSIA) SDN BHD 2. MAHKAMAH PERUSAHAAN MALAYSIA

GAN SOON HUAT 1. SANBOS (MALAYSIA) SDN BHD 2. MAHKAMAH PERUSAHAAN MALAYSIA

The High Court held the Industrial Court had jurisdiction to hear the applicant's constructive dismissal claim even though reinstatement was not claimed; the unilateral implementation of the Third Commission Scheme together with the removal of territory constituted a breach going to the root of the employment contract; the applicant's delay in leaving for about nine months was reasonably explained and did not amount to waiver; accordingly the Industrial Court's award was unlawful and irrational and was set aside and remitted for rehearing.

Citation
WA-25-260-06/2019 (Mahkamah Tinggi)
Parties
Applicant: Gan Soon Huat; 1st Respondent: Sanbos (Malaysia) Sdn. Bhd.; 2nd Respondent: Mahkamah Perusahaan Malaysia
Court
High Court
Jurisdiction
Malaysia
Judgment Date
12 November 2019
Case Number
WA-25-260-06/2019 (Mahkamah Tinggi)
Procedural Posture
Application for Judicial Review / High Court Judgment Allowing Application and Remitting Matter to Industrial Court
Outcome
Application for judicial review allowed; Industrial Court award dated 29 March 2019 set aside; matter remitted to the Industrial Court to be heard before another chairman; costs awarded to applicant RM5,000.00.
Legal Topics
Constructive Dismissal, Jurisdiction of Industrial Court, Contractual Variation, Judicial Review Grounds (illegality, Irrationality, Procedural Impropriety)
Source Language
Malay/English
Labour and Employment Law Administrative Law Industrial Relations Constructive Dismissal Jurisdiction of Industrial Court Contractual Variation Judicial Review Grounds (illegality, Irrationality, Procedural Impropriety)

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Parties

Gan Soon Huat

Applicant

Sanbos (Malaysia) Sdn. Bhd.

1st Respondent

Mahkamah Perusahaan Malaysia

2nd Respondent

Procedural Posture

Application for Judicial Review / High Court Judgment Allowing Application and Remitting Matter to Industrial Court

Legal Issues

  1. 1 Whether the Industrial Court has jurisdiction to hear a constructive dismissal claim where reinstatement is not claimed
  2. 2 Whether unilateral changes to commission scheme and removal of territory amounted to a breach going to the root of the employment contract (constructive dismissal)
  3. 3 Whether the employee's delay in leaving the employer amounted to waiver of the breach

Ratio Decidendi

The High Court held the Industrial Court had jurisdiction to hear the applicant's constructive dismissal claim even though reinstatement was not claimed; the unilateral implementation of the Third Commission Scheme together with the removal of territory constituted a breach going to the root of the employment contract; the applicant's delay in leaving for about nine months was reasonably explained and did not amount to waiver; accordingly the Industrial Court's award was unlawful and irrational and was set aside and remitted for rehearing.

Court Disposition

Application for judicial review allowed; Industrial Court award dated 29 March 2019 set aside; matter remitted to the Industrial Court to be heard before another chairman; costs awarded to applicant RM5,000.00.

Orders

  • Set aside Award No.1083 of 2019 dated 29 March 2019 of the Industrial Court
  • Remit the case to the Industrial Court to be heard before another Chairman to determine remedies in accordance with law