World · Malaysia Bureau
Court upholds RM402,000 compensation award for former HR manager
A Malaysian court has upheld a substantial compensation payout to a former human resources manager dismissed by Tasek Corporation Bhd, finding the termination was made in bad faith. The company continued to assign the executive's duties after firing him, the court determined.
LSN Malaysia ·
The court's decision reinforces protections for wrongful dismissal cases in Malaysia's employment sector. Tasek Corporation Bhd terminated Cha Poh Onn from his position as an HR manager, yet evidence showed the company continued to perform his job functions following his departure, indicating the dismissal lacked legitimate grounds.
The court found that the manner and timing of Cha's termination demonstrated bad faith on the part of the employer. By maintaining the HR responsibilities that were attributed to the terminated employee, Tasek Corporation effectively contradicted its own justification for the separation.
The RM402,000 compensation award addresses both the financial impact of the wrongful dismissal and the circumstances surrounding Cha's removal from his post. The court's decision sends a signal to employers regarding compliance with fair employment practices and the documentation required to support termination decisions.
The ruling underscores judicial scrutiny of dismissal procedures, particularly when employers' post-termination actions contradict the stated reasons for separation. Employment law experts note such cases highlight the importance of maintaining consistency between termination rationales and subsequent operational decisions.