“Redundancy refers to a surplus of labour and is normally the result of the reorganization of the business of an employer, and its usual consequence is retrenchment, i.e., the termination by the employer of those employees found to be surplus to his requirements after the reorganization. Thus, there must first be redundancy or surplus of labour before there can be retrenchment or termination of the surplus.”DunstonAyadurai in Industrial Relations in Malaysia: Law and Practice.
The Industrial Court plays a vital role in any representation filed for unfair dismissal which is premised on retrenchment due to redundancy. For clarity, retrenchment is the act of dismissal which is a result of redundancy. Redundancy is when a company has a surplus of labour.
Company may pursuant to its plan for reorganization, rightsizing, merger and costs cutting during the financial downturn, may make decisions that would inevitably lead to situations that there would be an overlap of job function or excess of the employee or phasing out of job function.
“implementation of a reorganizing scheme adopted for reasons of economy and better management of the business, the services of some of the employees become excess of the requirement of the business, the employer is entitled to discharge such excess.” – Firex Sdn Bhd v. Cik Ng Shoo Waa; [1990] 1 ILR 226
There is no restriction that such exercises can only be undertaken at times of financial turmoil, these exercises can be undertaken at any time by the company and originate from a genuine business decision. When any employer undertake such measures it has to be one exercised fairly, genuinely and without ulterior motive
In William Jacks & Co (M) Bhd v. S. Balasingam; [1997] 3 CLJ 235 wherein the Court of Appeal held “whether the retrenchment exercises in a particular case is bona fide or otherwise, is a question of fact and of degree depending for its resolution upon the peculiar facts and circumstances of each case. It is well-settled that an employer is entitled to organize his business in the manner he considers best. So long as that managerial power is exercised bona fide, the decision is immune from examination even by the Industrial Court. However, the Industrial Court is empowered, and indeed duty-bound, to investigate the facts and circumstances of a particular case to determine whether that exercise of power was in fact bona fide.”
What are the basic questions that will be asked in justifying whether any exercise of retrenchment is made fairly, genuinely and without ulterior motive are as follows:-
- Whether the retrenchment was justified by the circumstances of the case;
- Whether the grounds for the retrenchment given by employer are true, that is, whether there had in fact occurred a reduction in the business of the company due to circumstances such as scarcity of raw material on the availability of which the running of the factory depends or stoppage of work under the orders of the government, or changes in economy, which made it impossible to continue the business except at a loss or on meagre profits; and
- Whether the order of retrenchment was motivated by bad faith and a desire to victimize or harass the workman whom for some ulterior reasons the employer wanted to discharge or dismiss”.
There are numerous cases whether the Industrial Court and the superior court have both affirmed and/or rejected retrenchment exercises and apart from the related principles of law to be adhered, each representation of unfair dismissal must be evaluated and confined to its own facts.
Employers before undertaking such action are required to ensure that all formal legal consideration are taken first and make the statutory notification as required. Failure to do so can attract liability in the form of representation for unfair dismissal.
Employers that have a valid justification by way of internal reports, by conducting analysis of the impact of such an exercise and have undertaken the best effort possible to avoid retrenchment stands in a strong position to defend itself if confronted with any representation of unfair dismissal.
Premjit Singh is the Managing Partner of Prem & Associates and he can be contacted at 012-5236755 or email to prem@premlaw.com
On this site, you can discover a wide range of online casinos.
Searching for traditional options or modern slots, there’s a choice for any taste.
The listed platforms checked thoroughly for trustworthiness, allowing users to gamble with confidence.
free spins
Moreover, the platform unique promotions along with offers to welcome beginners and loyal customers.
Thanks to user-friendly browsing, discovering a suitable site happens in no time, enhancing your experience.
Stay updated on recent updates with frequent visits, as fresh options appear consistently.
Here, you can find a great variety of online slots from top providers.
Visitors can experience classic slots as well as feature-packed games with high-quality visuals and interactive gameplay.
Whether you’re a beginner or an experienced player, there’s something for everyone.
play bonanza
The games are available anytime and compatible with PCs and smartphones alike.
All games run in your browser, so you can start playing instantly.
Site navigation is user-friendly, making it convenient to find your favorite slot.
Join the fun, and discover the world of online slots!
This website, you can discover a great variety of slot machines from top providers.
Visitors can try out classic slots as well as feature-packed games with stunning graphics and exciting features.
Even if you’re new or a casino enthusiast, there’s a game that fits your style.
money casino
Each title are available anytime and optimized for desktop computers and mobile devices alike.
No download is required, so you can jump into the action right away.
Site navigation is intuitive, making it convenient to explore new games.
Register now, and discover the excitement of spinning reels!
On this platform, you can find lots of online slots from top providers.
Users can try out traditional machines as well as new-generation slots with high-quality visuals and bonus rounds.
Even if you’re new or an experienced player, there’s something for everyone.
slots
All slot machines are ready to play 24/7 and compatible with desktop computers and smartphones alike.
No download is required, so you can start playing instantly.
Site navigation is intuitive, making it convenient to find your favorite slot.
Join the fun, and dive into the excitement of spinning reels!
Within this platform, explore an extensive selection virtual gambling platforms.
Searching for classic games new slot machines, there’s something for any taste.
All featured casinos are verified for trustworthiness, enabling gamers to bet peace of mind.
casino
Moreover, the platform unique promotions along with offers targeted at first-timers and loyal customers.
Thanks to user-friendly browsing, finding your favorite casino takes just moments, making it convenient.
Stay updated on recent updates by visiting frequently, because updated platforms are added regularly.
Looking for latest 1xBet promo codes? Our platform offers working promotional offers like GIFT25 for new users in 2025. Claim €1500 + 150 FS as a welcome bonus.
Activate official promo codes during registration to boost your bonuses. Enjoy risk-free bets and exclusive deals tailored for casino games.
Discover daily updated codes for 1xBet Kazakhstan with guaranteed payouts.
All voucher is tested for validity.
Grab exclusive bonuses like 1x_12121 to double your funds.
Valid for new accounts only.
https://zbookmarkhub.com/story19797734/unlocking-1xbet-promo-codes-for-enhanced-betting-in-multiple-countriesKeep updated with top bonuses – apply codes like 1x_12121 at checkout.
Enjoy seamless benefits with instant activation.