EMPLOYMENT LAWS RELATING TO EMPLOYER–EMPLOYEES RELATIONSHIP

EMPLOYER'S RIGHTS

The Rights to Terminate an Employee’s Services

In Award No. 34 made in the case of Majlis Amanah Rakyat (MARA) Kedah and Transport Workers’ Union, Federation of Malaya (Industrial Arbitration Tribunal Case No. 2 of 1967), the learned Chariman stated as follows:-

“It has been stated in the field of industrial relations that just as an employer’s right to exercise his option to terminate an employee’s services in terms of his contract has to be recognised, so is the employee’s right to expect security of tenure to be taken into account.”

It follows, therefore, that an employer is at liberty at any time to terminate the services of his employee by contractual notice, but if such termination is in reality for misconduct, natural justice requires that the employees should not be condemned unheard and that the misconduct must be sufficiently, serious to warrant the grave penalty of dismissal.

It has been held that, where the discharge of a workman though ostensibly in pursuance of terms of his contract of service was in reality for an alleged act of misconduct, and not enquiry had been held, nor opportunity was given to the workman to offer his explanation to defend himself, the action of the management in discharging the workman could not be upheld”.

The Court agree with the views expressed in the above dispute and hold that the action of the Company in terminating the services of the Claimant cannot be upheld in the above circumstances.

Sime Darby Plantations Berhad v. Thomas Cheryan.

IC Award No. 64/75

Maintaining good Industrial Relations

Industrial relationship is nothing else but constant communication at all levels. It is strange to find that a large enterprise like tha A.I.A. has no Personnel Manager appointed until recently.  It is not surprising therefore that there was no guidance to understand job gradings, a matter which is now sub-judice.  Besides there must be job-definition to indicate what the workers are expected to do.  There must also be training facilities for better prospects to give workers job-satisfaction.  Again staff-appraisal should show the standard expected, so that the workers would know how they are rated for the job i.e. on what basis and by what criterion they are to be judged.  There could be differences between  jobs  by  job-evaluation.     All   these  matters  come  under  the  purview  of  the

Personnel Manager, in effect to maintain the right relationship of mutual respect between “personnel” and “management”.

American International Assurance v. National Union of Commercial Workers.

IC Award No: 89/75

Employer’s right to take disciplinary action

The Court agrees with the Company that, irrespective of the purported settlement which is denied, the management had a right to proceed with discliplinary action against the Claimant.  And in view of the Court’s earlier findings on the question of misconduct and the inquiry itself, the issue of the warning letter was properly made to place on record the management’s decision on the incident.

American Internation Assurance Co. Ltd. v. National Union of Commercial Workers.

IC Award No. 25/76