Noramidah Binti Othman @ Anuar v 1. ) Perodua Sales Sdn Bhd 2. ) MAHKAMAH PERUSAHAAN MALAYSIA

w-01a-477-08-2021 Court of Appeal (Mahkamah Rayuan) 1 December 2024 • W-01(A)-477-08/2021 • 56 min read
17 cases cited (0 SG, 17 foreign)

Catchwords

Constructive Dismissal - sale of the business to a new associate company in which the employer has substantial shareholding - whether an employee has a equally valid option to remain with current employer instead of having to resign from their permanent position to join the new company for a 2-year fixed term employment contract when nothing is mentioned about the recognition by the new company of the years of service with their current employer - whether the requirement of “reasonableness” has been incorporated into the Transfer Clause as a term in the contract of employment - the 3 appellants who opted to remain with the employer were transferred from Rawang to Kota Kinabalu, Kuching and Kuala Trengganu -whether the transfer was “unreasonable” in the context and circumstances of the case - whether the appellants had been victimized for opting to remain and that the transfer amounted to a fundamental breach of the term of the contract requiring the employer to act reasonably - whether the employer should have acted reasonably in a secondment of employees to the new company as the employer had agreed to keep their positions vacant for them after the 2-year contract is over subject to availability- whether the transfer exercise was done mala fide with a 3-day Notice of Transfer to report for work in the new locations - whether the appellants had discharged their legal burden to prove constructive dismissal - whether the employer had discharged the evidential burden to prove that there was a need for the appellants’ services in the locations that they were being transferred to and whether there no vacancies for them in other nearby branches of the employer - whether the Court may take cognisance of illegality though not pleaded in that there was no work permit applied for and obtained when 2 of the appellants were required to report to work in East Malaysia.

Judges (3)

Counsel (6)

Parties (3)

Statutes Cited

Federal Constitution
Art 6

Cases Cited (17)

UK (6)
[1930] AC 271 [1939] 1 All ER 513 [1953] 1 All ER 645 [1969] 3 All ER 1126 [2009] EWCA Civ 156 [2014] UKSC 55
MY (11)
[1988] 1 CLJ 45 [1995] 1 MLJ 308 [1995] 2 AMR 1601 [1995] 2 CLJ 748 [1995] 2 MLJ 317 [2000] 3 AMR 3009 [2000] 3 CLJ 625 [2000] 3 MLJ 714 [2000] 4 CLJ 77 [2015] 5 MLJ 619 [2024] MLJU 840

Judgment

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Source: eJudgment (w-01a-477-08-2021)