CHANG HENG KEONG 1. ) ACEXIDE TECHNOLOGY SDN BHD 2. ) MAHKAMAH PERUSAHAAN MALAYSIA
The Court held that on the totality of evidence (employee register, salary nomenclature in financials, EPF/SOCSO contributions, PCB/EA forms, roles and remuneration) the appellants qualified as 'workman' under s 2 IRA despite being directors; the Industrial Court erred in law by finding lack of jurisdiction; the High Court's affirmation was set aside; the Court awarded compensation in lieu of reinstatement and backwages and ordered interest and costs as appropriate.
- Citation
- W-01(A)-199-03/2024 (Mahkamah Rayuan)
- Parties
- Appellant: Woon Kim Choy; Appellant: Chang Heng Keong; Respondent: Acexide Technology Sdn Bhd; Respondent: Mahkamah Perusahaan Malaysia
- Court
- A
- Jurisdiction
- Malaysia
- Judgment Date
- 12 November 2024
- Case Number
- W-01(A)-199-03/2024 (Mahkamah Rayuan)
- Procedural Posture
- Appeal (civil) / Court of Appeal Judgment on Consolidated Appeals From High Court Judicial Review of Industrial Court Awards
- Outcome
- Appeals allowed. Industrial Court awards quashed to extent they dismissed claims for unlawful dismissal; High Court orders set aside; Court substituted findings and awarded compensation, backwages, interest and costs.
- Legal Topics
- Definition of Workman Under IRA, Directors as Employees (dual Capacity), Unlawful Dismissal, Minority Oppression Vs Employment Remedies, Judicial Review of Tribunal Awards, Compensation in Lieu of Reinstatement
- Source Language
- Malay/English
Case Brief
Summary, issues, holding and outcome
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Parties
Woon Kim Choy
Appellant
Chang Heng Keong
Appellant
Acexide Technology Sdn Bhd
Respondent
Mahkamah Perusahaan Malaysia
Respondent
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Consolidated Appeals From High Court Judicial Review of Industrial Court Awards
Legal Issues
- 1 Whether executive directors could simultaneously be employees/workmen under s 2 IRA
- 2 Whether EPF, SOCSO and PCB deductions and EA forms constitute strong indicia of employment not rebutted by employer
- 3 Whether pursuing minority oppression remedies as shareholders precludes an unlawful dismissal claim under the IRA
Ratio Decidendi
The Court held that on the totality of evidence (employee register, salary nomenclature in financials, EPF/SOCSO contributions, PCB/EA forms, roles and remuneration) the appellants qualified as 'workman' under s 2 IRA despite being directors; the Industrial Court erred in law by finding lack of jurisdiction; the High Court's affirmation was set aside; the Court awarded compensation in lieu of reinstatement and backwages and ordered interest and costs as appropriate.
Court Disposition
Appeals allowed. Industrial Court awards quashed to extent they dismissed claims for unlawful dismissal; High Court orders set aside; Court substituted findings and awarded compensation, backwages, interest and costs.
Orders
- Quash the Industrial Court awards to the extent they found the appellants were not 'workmen' and dismissing their claims; set aside the High Court judgment dismissing judicial review applications
- For Woon Kim Choy: compensation in lieu of reinstatement RM437,000.00 (RM14,500 salary + RM4,500 allowance x 23 months)
Full Case Text
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