Case Update: Federal Court rules that an employer cannot use reasons discovered post-dismissal to justify an employee dismissal

In this Case Update series, I share summaries of recent Malaysian court decisions to explore the current approach taken by the courts when deciding on employment-related issues. You can find all the posts in the series by clicking here, including case updates on other legal areas by TheMalaysianLawyer co-founder Lee Shih.

It is not uncommon, in instances where an employee has been dismissed, for new facts or circumstances to be discovered post-termination which are then treated as “justifying” the dismissal in the eyes of the employer.

For example, where an employee has been dismissed for poor performance, the employee or employees who then take on the dismissed employee’s responsibilities may discover a trail of errors or negligence that ran deeper than was known at the point of termination. In other cases, the employee may have been dismissed for one reason, but the employer later uncovers evidence of other misbehaviour or misconduct which the employer then takes as further proof that the dismissal was “the right decision”.

While these post-dismissal discoveries may make an employer rest more easily, convinced that dismissal was the correct option, what would happen if the employee brings an unfair dismissal claim? Would an employer who dismissed an employee because of Reason A be then able to justify the dismissal by later saying that, after the termination, they also discovered Reason X, Y, and Z, and that therefore even if Reason A was weak and insufficient to justify termination, the court should also consider Reasons X, Y, and Z?

This was the issue that went all the way to the Federal Court recently, in Maritime Intelligence Sdn Bhd v Tan Ah Gek [2021] 4 ILR 417.

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Case Update: Court of Appeal rules that employee demotion amounts to constructive dismissal

In this Case Update series, I share summaries of recent Malaysian court decisions to explore the current approach taken by the courts when deciding on employment-related issues. You can find all the posts in the series by clicking here, including case updates on other legal areas by TheMalaysianLawyer co-founder Lee Shih.

It is recognised that it is a management prerogative for companies to decide on the best way to run their business, and that the courts will be slow to interfere with such management decisions. However, we do still see the courts stepping in when the decisions made by employers are deemed to be unfair, or in breach of the employment contract. I previously wrote about a case where an employee transfer was deemed by the Industrial Court to constitute a constructive dismissal (Case Update: When an employee transfer can amount to a constructive dismissal).

In this case update, I consider the Court of Appeal (“CoA”) case of Ng Teck Fay v. Mahkamah Perusahaan Malaysia & Anor. [2021] 10 CLJ 73, where the CoA found that an employee demotion or re-grading amounted to a constructive dismissal.

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Employment law: 2021 review and 2022 forecast

I am kicking off 2022 by looking back for a quick recap of the 2021 Malaysian employment law and industrial relations highlights, and a brief outline of what I expect to be the key developments in the coming year.

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Top 5 Most-Read Articles on The Malaysian Lawyer 2021

We look back at the year 2021 and with a countdown of the top 5 most-read articles on The Malaysian Lawyer this year. We look forward to having our readers continue to frequent this blog in the year 2022.

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Top 5 Tax Cases in Malaysia 2021

Our guest writer, Khong Siong Sie, writes on the top 5 tax cases in Malaysia for the year 2021.

Siong Sie returns with his review of the top 5 tax cases in Malaysia in 2021. This follows the earlier 2020 review of the top 5 tax cases.

The commentary covers the determination of a real property company, release of Bumiputra quota, the director’s liability for tax, personal data protection versus the tax authority, and the solicitor-client privilege versus the tax authority.

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Top 5 Restructuring and Insolvency Cases in Malaysia 2021

Our guest writer, Nathalie Ker, writes on the top 5 restructuring and insolvency cases in 2021.

We continue the Top 5 cases series with the top five restructuring and insolvency cases in Malaysia for the year 2021. You can also read last year’s 2020 edition.

This year’s cases cover schemes of arrangement, judicial management and winding up.

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