Court upholds manager's dismissal over RM2.52 million rental arrears

The Industrial Court has ruled in favour of Encorp Must's decision to dismiss a manager over rental arrears totalling RM2.52 million, rejecting the employee's argument that his submitted resignation notice should have halted disciplinary proceedings.

Industrial Court chairman Andersen Ong determined that the company retained the right to pursue disciplinary action against the manager even after he had tendered his notice of resignation. The court found that the seriousness of the financial breach justified the termination decision.

The ruling clarifies that an employee's resignation notice does not automatically prevent an employer from taking disciplinary action for grave misconduct or financial irregularities. The court's decision emphasizes that companies may proceed with disciplinary measures when substantial breaches of duty or contractual obligations are involved.

The case underscores the importance of financial accountability in management positions and sets a precedent for how Malaysian employers may handle disciplinary matters when significant monetary liabilities are at stake. The decision reinforces that resignation notifications alone cannot shield employees from consequences of serious breaches incurred during their tenure.