CHANG HENG KEONG 1. ) ACEXIDE TECHNOLOGY SDN BHD 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

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

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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

  1. 1 Whether executive directors could simultaneously be employees/workmen under s 2 IRA
  2. 2 Whether EPF, SOCSO and PCB deductions and EA forms constitute strong indicia of employment not rebutted by employer
  3. 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)