Court orders company to pay RM301,750 over constructive dismissal of cancer-stricken manager

The Federal Court has directed Tasek Corporation Bhd to pay RM301,750 to Teh Chang Khoon following a determination that he was constructively dismissed from his position. The ruling came after the company's appeal against the decision was unsuccessful, upholding the lower court's finding that the termination was unlawful.

Constructive dismissal occurs when an employer creates working conditions so intolerable that an employee is forced to resign. In this case, the dismissal of Teh, who was undergoing treatment for cancer at the time, was deemed to constitute such circumstances by the court.

The compensation awarded reflects the court's assessment of damages owed to Teh for the unlawful termination of his employment. The case underscores Malaysia's employment protections for workers facing serious health challenges and the legal consequences companies may face for mishandling such situations.

The decision reinforces the principle that employers have a duty of care toward employees dealing with significant medical conditions and cannot use illness as grounds for termination or create circumstances leading to forced resignation.