Former Consultant Awarded RM221,250 For Constructive Dismissal

A former company consultant was awarded RM221,250 by the Industrial Court. This comes after he was found to have been constructively dismissed from his employment.

Tribunal chairman D Paramalingam ordered the company to pay K Theva Pragash RM30,000 compensation in lieu of reinstatement.

The chairman also ordered backwages amounting to RM191,250 after subtracting 15% as Theva worked elsewhere after the dismissal.

In his 39-page award, Paramalingam stated that sending Theva to return working for his previous employer was inappropriate as there has been a total breakdown of trust between them.

The Industrial Court awarded  RM221,250 to the former company consultant for constructive dismissal.

He said the court found that Theva prevailed in establishing that there had been a fundamental violation of the employment contract allowing him to claim constructive dismissal. He also said the company failed to rebut Theva’s contention when revealed there was constructive dismissal.

Paramaligam said the court determined the company had delayed in remitting the claimant’s EPF and Socso contributions and the income tax deductions.

The chairman said the company also failed to pay his salaries from February to May 15 2018.

“The court finds that there had been a serious fundamental breach of the claimant’s employment contract when the company delayed in paying the outstanding amount of RM40,152.25 at the time the claimant justifiably issued his notice of constructive dismissal on Aug 20, 2018,” the chairman said.

Paramalingam said the court found that the company had deleted the claimant’s official email account and failed to provide him with a workplace. “Such an act evinces an intention by the company to refuse the claimant further employment,” he said.

He said the company had also planned to eliminate the claimant’s status as a permanent employee but made a backdated offer of a one-year contract as a consultant.

Theva, who was represented by S Muhendaran and Chong Wan Lo, was appointed as consultant for two years from Feb 1, 2016 and was subsequently offered the position of CEO for a subsidiary of the company. 

Source: Free Malaysia Today

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