Tan Lay Peng (Wakil Harta Pusaka Sebelum Ini Iaitu Tan Leong Huat Si Mati Yang Telah Meninggal Dunia Pada 15.03.2022 Bagi Maksud Prosiding Ini Melalui Surat Kuasa Mentadbir Pa-31ncvc-446-05/2022 Bertarikh 21.06.2022) 1. ) RHB BANK BERHAD 2.

Tan Lay Peng (Wakil Harta Pusaka Sebelum Ini Iaitu Tan Leong Huat Si Mati Yang Telah Meninggal Dunia Pada 15.03.2022 Bagi Maksud Prosiding Ini Melalui Surat Kuasa Mentadbir Pa-31ncvc-446-05/2022 Bertarikh 21.06.2022) 1. ) RHB BANK BERHAD 2.

The applicable legal test for constructive dismissal is the contract test: an employee must prove the employer's conduct amounted to a repudiatory breach or evinced an intention not to be bound by the employment contract; reasonableness may inform factual assessment but is not a separate legal test. The Industrial Court erred by applying the reasonableness/bona fide test rather than the contract test, and the Court of Appeal's quashing of the Industrial Court award is affirmed.

Citation
01(f)-10-04/2023(P) (Mahkamah Persekutuan)
Parties
Appellant (administrator of Estate of Deceased): Tan Lay Peng; Respondent: RHB Bank Berhad; Respondent: Mahkamah Perusahaan, Malaysia
Court
f
Jurisdiction
Malaysia
Judgment Date
9 February 2024
Case Number
01(f)-10-04/2023(P) (Mahkamah Persekutuan)
Procedural Posture
Civil Appeal / Final Appellate Judgment (federal Court)
Outcome
Appeal dismissed; Court of Appeal decision affirmed; no order as to costs
Legal Topics
Constructive Dismissal, Contract Test, Reasonableness Test, Implied Duty of Mutual Trust and Confidence, Repatriation/transfer, Judicial Review (certiorari)
Source Language
Malay/English
Employment Law Industrial Relations Contract Law Administrative Law Constructive Dismissal Contract Test Reasonableness Test Implied Duty of Mutual Trust and Confidence +2 more

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Parties

Tan Lay Peng

Appellant (administrator of Estate of Deceased)

RHB Bank Berhad

Respondent

Mahkamah Perusahaan, Malaysia

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment (federal Court)

Legal Issues

  1. 1 Whether the correct legal test for constructive dismissal is the contract test or the reasonableness test
  2. 2 Whether the Industrial Court applied the correct test in finding constructive dismissal in respect of the employee's repatriation/transfer
  3. 3 Whether the employee's transfer/repatriation amounted to a repudiatory breach of contract or breach of implied terms such as mutual trust and confidence

Ratio Decidendi

The applicable legal test for constructive dismissal is the contract test: an employee must prove the employer's conduct amounted to a repudiatory breach or evinced an intention not to be bound by the employment contract; reasonableness may inform factual assessment but is not a separate legal test. The Industrial Court erred by applying the reasonableness/bona fide test rather than the contract test, and the Court of Appeal's quashing of the Industrial Court award is affirmed.

Court Disposition

Appeal dismissed; Court of Appeal decision affirmed; no order as to costs

Orders

  • Appeal dismissed
  • Court of Appeal decision affirmed