Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Redundancy/retrenchment

Legal area

Court

22 Oct 2024

CHAIRIL BAHARI BIN IBRAHIM 1. ) MMSB CONSULT SDN BHD 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

Citation

W-01(A)-608-11/2023 (Mahkamah Rayuan)
Court

A
Case number

W-01(A)-608-11/2023 (Mahkamah Rayuan)

The Court held the Industrial Court erred in law by construing clause 14 restrictively and failing to apply the correct legal test for redundancy; the Ministry of Finance cost-optimization and project restructuring legitimately reduced the employer's workforce needs such that bona fide redundancy arose and the High Court was correct to quash the Industrial Court Awards.
14 Jun 2023

MELIPOLY ENTERPRISE SDN BHD 1. ) Ong Hong Yeok 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

Citation

W-01(A)-736-12/2021 (Mahkamah Rayuan)
Court

A
Case number

W-01(A)-736-12/2021 (Mahkamah Rayuan)

The Court held the employer was limited to the reasons in the termination letter (economic recession and poor sales); although financial losses were evidenced, the employer failed to prove bona fide redundancy because the employee's functions continued (reduced but not eliminated); therefore the dismissal was without just cause or excuse. The Industrial Court retained jurisdiction following the Ministerial reference under s.20 IRA even though the respondent did not seek reinstatement. Appeal dismissed and costs awarded.