Industrial Court backs company's dismissal of manager over rent arrears

The Industrial Court has ruled that Encorp Must Sdn Bhd was entitled to proceed with dismissing a manager over unpaid rent amounting to RM2.52 million, even after the employee had submitted his resignation.

Chairman Andersen Ong determined that the company's disciplinary action was warranted in the circumstances, rejecting arguments that the resignation negated the employer's right to pursue the termination process.

The decision establishes that an employee's resignation does not automatically prevent an employer from implementing disciplinary measures for alleged misconduct or financial breaches. The court found that the severity of the outstanding rent arrears constituted grounds for the company to proceed with formal dismissal proceedings.

The ruling provides clarity on employer rights in Malaysia's industrial relations framework, particularly regarding the interplay between employee resignations and ongoing disciplinary processes. The decision underscores that companies retain the authority to address serious financial or conduct matters regardless of whether an employee has tendered notice to leave.