PUTRAJAYA: The Federal Court here yesterday allowed a freight forwarding company to appeal against a court decision that it (the company) pay RM222,000 in back wages and compensation to a former general manager who was constructively dismissed.
A five-member panel led by Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum granted leave to Bax Global (Malaysia) Sdn Bhd to appeal against the Industrial Court decision to award Sukhdev Singh Pritam Singh back wages and compensation in lieu of reinstatement after accepting his claim that he was constructively dismissed from the company.
Justice Malanjum allowed Bax Global’s application for leave to appeal on one legal question to be determined by the Federal Court.
The legal question is whether an employee claiming constructive dismissal needs to expressly inform the employer orally or in writing before he deems himself constructively dismissed.
Malanjum said there was no decision from the apex court on that issue.
Sukhdev Singh, who formerly worked as the general manager of the Facilities, Securities and Risk Management department at Bax Global, deemed himself constructively dismissed on June 10, 2002.
This was after he received a letter from the company stating that he was redundant and an offer of an alternative demotion position.
Sukhdev Singh then orally informed the company that he refused to accept the demoted position, and walked out of the job.
He then filed a complaint under Section 20 (1) of the Industrial Relations Act 1967 and the human resource minister referred his case to the Industrial Court.
On March 24, 2009, the Industrial Court allowed Sukhdev’s claim and held that he was constructively dismissed by the company. The Industrial Court ordered Bax Global to pay him RM252,000 in back wages and compensation in lieu of reinstatement.
Bax Global filed a judicial review at the High Court to quash the Industrial Court decision and on Nov 26, 2010, the High Court ruled in favour of Bax Global.
Sukhdev Singh appealed to the Court of Appeal which reinstated the Industrial Court award on April 12 this year.
The Court of Appeal held that Sukhdev Singh, having informed the company of his refusal to accept the demoted position, constituted sufficient notice that he was constructively dismissed.
However, it held that RM30,000 should be deducted from the RM252,000 award because Sukhdev was employed. — Bernama