Day: September 29, 2022

  • Domestic Inquiry is not a MUST

    Domestic Inquiry is not a MUST

    Leave cannot be claimed as of Right; the Employer reserves the Discretion to Refuse or Revoke the Leave
    Photo: 金老大

    M Company v. IBS

    • Industrial Court, Kuala Lumpur
    • [Case No: 4/4-334/94 (15 August 1994)]
    • 27 September 1995

    The Claimant contends that

    • he had been dismissed without just cause or excuse on 1 December 1993;
    • the company’s failure to hold a Domestic Inquiry before dismissing him, and this was a gross violation of natural justice.

    The Company contends that

    Photo: 李馨怡

    • the claimant’s absence from work from 27 November 1993 to 1 December 1993, although he had alleged, he had important personal matters to attend to
    • the claimant’s services as a lorry driver were terminated by himself for being absent from work for more than two days without informing or attempting to inform of the excuse before or at the earliest opportunity during such absence.
    • the claimant was not dismissed but had contravened s. 15 of the Employment Act and had terminated his own contract of employment as a lorry driver.

    Reason of the Claimant for absence:

    • had to be in Jengka, Pahang, from 27 November to 1 December 1993 to attend to his school-going children’s needs.

    Leave Application Procedures

    Photo: Tahir Khan

    • Before taking a leave of absence, any employee who is planning to do so is required to fill out an application for leave and acquire approval for their time off.
    • The leave needed to be reviewed and approved by the appropriate authorities before taking it.

    The claimant was aware of the procedure as he had previously put in a proper application for leave.

    Employment Act 1955

    Section 15(2) of the Employment Act 1955 provides inter alia:

    An employee shall be deemed to have broken his contract of service with the employer if he has been continuously absent from work for more than two consecutive working days without prior leave from his employer unless he has a reasonable excuse for such absence and has informed or attempted to inform his employer of such excuse prior to or at the earliest opportunity during such absence.

    The Law

    The employment contract binds the employee, and as part of that contract, he is required to report to work each and every day unless he was authorised not to do so (on approved leave or rest day).

    The Evaluation Of Evidence And Findings

    The claimant, in his testimony, under cross-examination, admitted he did not contact the company anytime between 27 November 1993 to 1 December 1993.

    The Conclusion

    1. On Domestic Inquiry

    On the need to hold a domestic inquiry, the Court reminded itself on the decision of the highest Court that it is now not necessary to hold an inquiry before dismissing the employee.

    For a breach under s. 15, the Court was of the view that there is no need for an inquiry.

    2. On Dismissal Without Just Cause or Excuse

    The Court holds that the claimant’s reason for absence to attend to his domestic needs may be a reasonable excuse but finds that the claimant failed to inform or attempt to inform the company at the earliest opportunity before or during his absence.

    The Court further finds as a fact the claimant had not applied for leave before his absence.

    Employers can refuse or revoke leave at their discretion

    It cannot be denied a workman’s leave is granted according to the exigencies of his service. Leave cannot be claimed as of right, and the employer reserves the discretion to refuse or revoke leave.

    It, therefore, connotes the necessity of obtaining permission from his employer, relieving him from the obligation of attending his work.

    Unless the permission or leave required is granted, the workman seeking leave cannot absent himself from work. Until and unless a workman’s leave is approved by the proper approving authority, he runs the risk of being absent without leave and in breach of the statutory provision in the Employment Act.

    The Court found that the claimant had committed a fundamental breach of his employment contract by absenting himself from work for more than two days from November 27, 1993, without reasonable excuse and without proper leave.

    Award

    The claimant’s claim is dismissed.

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

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  • Breach of Contract of Service and Termination of Employment is 2 Different Things

    Breach of Contract of Service and Termination of Employment is 2 Different Things

    There is no such thing as statutory termination.

    G Company

    v

    Nationam Union of Plantation Workers

    • Industrial Court, Kuala Lumpur
    • Award No. 55 Of 1982 [Case No. 250/81]
    • 24 February 1982

    Employment Act 1955

    Section 15 of the Employment Act 1955 reads:

    1. An employer shall be deemed to have broken his contract of service with the employee if he fails to pay wages per Part III.
    2. An employee shall be deemed to have broken his contract of service with the employer if he has been continuously absent from work for more than two consecutive days:-
      1. without prior leave from his employer or without reasonable excuse; or
      2. without informing or attempting to inform his employer of the excuse before or at the earliest opportunity during such absence.”

    The word “consecutive” has been defined in the Oxford Advanced Learner’s Dictionary of Current English (Fifth Edition) as “coming one after the other without interruption or following continuously”.

    The Facts

    The Claimant was first employed on the 410-acre rubber estate as a rubber tapper in 1954.

    In November 1977, the Claimant informed the Estate Manager verbally that he proposed to take 35 days’ leave to go to India to visit his sick mother-in-law.

    He was only entitled to 14 days’ leave at the time. the Estate Manager told him to put his request in writing.

    On 1.12.1978, the Claimant did not report for work. The following day, he left for India by air and returned on 4.1.1979.

    He reported for work on 5.1.1979, but as it was raining heavily that day, there was no work on the estate.

    On the same day, however, the Estate Manager addressed a letter to the Claimant terminating his service with the Company with effect from that day because he had been absent from work without leave for 35 days.

    The Claimant contends that

    • he had been dismissed without just cause or excuse on January 5, 1979;

    The Company contends that

    • the Claimant never applied for leave in writing.
    • the Estate Manager did not grant the leave verbally either.
    • in any event, the Estate Manager had no authority to grant leave exceeding 14 days.

    The Union contends that

    • The written application for leave was made on 22.11.1978 and handed in on 23.11.1978.
    • Further, the Estate Manager granted verbal approval of the leave before the Claimant left for India.

    The Law

    It is obvious that an absent workman misconducted himself if he was absent from work without reasonable excuse or, if he had such reasonable excuse, fails to inform or attempt to inform his employer of such excuse before or at the earliest possible opportunity during his absence.

    The Evaluation Of Evidence And Findings

    The Claimant knew he had to apply for leave in writing.

    He did not do so, but even if he did, he did not wait for the approval.

    He was only entitled to 14 days of leave at the time, and the Estate Manager did not have the authority to grant more than 14 days. Approval had to come from the Company’s head office in Melaka.

    In its Statement of Case, the Union said that the Claimant waited until 1.12.1978, and as his leave application had not been rejected, he proceeded to India.

    Three days after his departure, the Company made enquiries regarding his absence.

    On 30.12.1978, the Estate Manager reported his absence to the Director of Labour and the Company’s decision to terminate his service.

    On 5.1.1979, the Estate Manager, by letter addressed to the Claimant, terminated his services from that day.

    The Conclusion

    The Court made no specific reference to Section 15 (2) of the EA 1955 as there is no such thing as statutory termination.

    Breach of contract of service and termination of employment are two different things.

    A breach of contract of service may or may not lead to termination of employment.

    Section 15 of the Act is only a deeming provision.

    It cannot be the intention of the legislature that employees automatically lose their jobs whenever an employer fails to pay their wages under s 15(1). Nor do we foresee employees terminating their contracts of service every time an employer delays paying their salaries for more than seven days after the due date.

    In such instances, the employer commits an offence and may be dealt with under Section 91 of the Act.

    However, unlike the employer, there is no penalty clause in the Act against the employee if he breaches his service contract.

    The consequence of any such breach depends on the conditions of employment and the provisions of the Act.

    Absence without prior leave for more than two consecutive days is deemed a breach of the contract of service by Section 15 (2) of the Act.

    If the circumstances of the breach are such that it justifies termination of service, then the employer may terminate the contract of service under Section 13 (2) of the Act, which provides:-

    "Either party to a contract of service may terminate such contract of service without notice in the event of any wilful breach by the other party of a condition of the contract of service." 

    It follows that the act of termination is a separate process though consequential, following a breach of the contract of service.

    The question NOW is, did the Company properly terminate the Claimant’s services?

    There was, therefore, sufficient evidence to show that by absenting himself from work without prior leave of his employer for 35 days, the Claimant committed a wilful breach of a condition of his contract of service.

    The facts clearly show that his services were terminated under Section 13 (2) of the Act.

    Award

    The claimant’s claim is dismissed.

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Any reliance on such information is therefore strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新,请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

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