“Whether the employee’s employment was wrongfully terminated, entitling him to salary in lieu of notice, termination benefits, and unlawfully deducted wages”
CASE:
BRIEF FACTS:
- Lim Hwa Tian [ Lim] was employed as a salesman by Simple Farm Sdn Bhd [the Company] since 2012, with no written contract. His last drawn salary was RM2,300.00 plus allowances and commissions.
- On 20.12.2022, Mr. Lim claims he was directed by the Company’s director to cease work; the Company denies this.
- Lim sent a written notice on 10.2.2023, requesting clarification of his employment status, stating that if no response was received within 14 days, he would consider himself terminated.
- The Company claims not to have received the notice. The Company further claims that the AR Card was acknowledged received by their Associate Company.
- The Labour Court found that Mr. Lim had voluntarily terminated his employment by not returning to work and thus was not entitled to salary in lieu of notice or termination benefits.
- Mr. Lim also claimed unlawful deductions of RM16,000, which the Labour Court dismissed, stating deductions were lawful because they related to recovery of monies owed by the Company’s customers.
- Lim being unhappy appealed to the High Court.
THE DECISION OF THE HIGH COURT
- The High Court confirmed that Mr. Lim voluntarily resigned by his absence after the incident on 20 December 2022, and had no entitlement to salary in lieu of notice or termination benefits.
- The Court reasoned that the 52-day delay in seeking confirmation indicated the notice was an afterthought. The Court held that if he was unsure whether he was indeed terminated then why send a notice 52 days later seeking confirmation whether he was indeed terminated.
- Further, Mr. Lim’s absence for more than two days without prior leave was a breach under Section 15 EA 1955, indicating voluntary termination.
- However, the Court found the deductions of RM500 per month for 32 months were unlawful because they did not fit within the permissible deductions under Section 24 EA 1955. The deductions were not authorized by law nor supported by proper documentation.
- The Court granted judgment in favor of Mr.Lim for RM16,000 plus interest, noting the errors in the Labour Court’s decision.
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