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LLB Bulletin #2/2026 4 February 2026

LATEST CASES (ILR Issue 1 of 2026)

SUBJECT INDEX

COMPANY LAW

Separate legal entity – Lifting of corporate veil – Parent and subsidiary companies – Employee retrenched following boardroom tussle involving her husband (director) and other shareholders – Parent company issued termination letter to employee of subsidiary company – Whether companies functioned as single economic entity – Whether companies intertwined – Whether suitable for court to lift corporate veil of companies
Chung Lee Chu v. Revenue Harvest Sdn Bhd & Anor
(Augustine Anthony) [2026] 1 ILR 210 cljprime labourlaw

CONSTITUTIONAL LAW

Fundamental liberties – Right to livelihood – Contract of service allegedly invalid due to lack of Board of Directors' approval – Contract of service terminated – Right to be engaged in lawful and gainful employment – Whether there was breach of right – Federal Constitution, art. 5
Mohd Fitri Ibrahim v. Yayasan Islam Pulau Pinang
(Jeyaseelen T Anthony) [2026] 1 ILR 89 cljprime labourlaw

CONTRACT

Employment contract – Breach – Constructive dismissal – Employee resigned eight days after reinstatement – Allegations of CCTV repositioning, denial of access to banking tokens and email, and restrictions on work functions – Whether employer committed fundamental breach going to root of employment contract
Kong Sow Kam v. Arah Dagang Sdn Bhd
(Ahmad Razif Mohd Sidek) [2026] 1 ILR 145 cljprime labourlaw

Employment contract – Breach – Wages – Allowance – Allowance of employees unilaterally reduced and rescinded by employer – Whether allowance formed part of wages – Whether there was unilateral reduction of wages by employer – Whether change to terms of agreement mutually agreed by parties – Whether reduction of wages constituted fundamental and repudiatory breach of contract of employment
Jetvalet Sdn Bhd v. Lukman Hakim Mohd Zaki & Anor
(Shahnaz Sulaiman J) [2026] 1 ILR 43 cljprime labourlaw

Employment contract – Contract of service – Fixed-term contract – Termination – Contract of service allegedly invalid due to lack of Board of Directors' approval – Contract of service terminated – Whether genuine or permanent contract disguised as fixed-term contract – Whether there was requirement for employee to re-apply for renewal – Whether contract valid – Whether elements of contract fulfilled – Whether contract validly terminated by effluxion of time – Whether termination premature, unilateral and mala fide – Contracts Act 1950, s. 10(1)
Mohd Fitri Ibrahim v. Yayasan Islam Pulau Pinang
(Jeyaseelen T Anthony) [2026] 1 ILR 89 cljprime labourlaw

COURTS

Industrial Court – Dismissal – Claim by employee against employer – Whether employer instrumentality or agency of Government – Whether Industrial Court seized with requisite threshold jurisdiction to entertain, inquire into or adjudicate upon claim – Whether claim ought to be struck out – Industrial Relations Act 1967, ss. 29(fa), 29(g) & 52(1)
Nor Fardzliah Jaafar v. Perbadanan Nasional Bhd
(Amrik Singh) [2026] 1 ILR 51 cljprime labourlaw

INTELLECTUAL PROPERTY

Copyright – Infringement – Former employee set up competing business – Use of former employer's confidential information and tools – Unauthorised reproduction of designs – Whether there was sufficient objective similarity – Whether there was causal connection – Whether there was infringement of copyright
Inhome Group Sdn Bhd v. Dream Home Structural Works Sdn Bhd & Anor
(Azlan Sulaiman J) [2026] 1 ILR 1 cljprime labourlaw

Trademark – Invalidation – Former employee set up competing business – Use of former employer's confidential information and tools – Whether there was similarity between marks used by companies – Use of descriptive words – Whether there was likelihood of confusion
Inhome Group Sdn Bhd v. Dream Home Structural Works Sdn Bhd & Anor
(Azlan Sulaiman J) [2026] 1 ILR 1 cljprime labourlaw

LABOUR LAW

Dismissal – Constructive dismissal – Employee resigned eight days after reinstatement – Allegations of CCTV repositioning, denial of access to banking tokens and email, and restrictions on work functions – Managerial prerogative – Right of employer to organise and re-organise business structure – Whether employer committed fundamental breach going to root of contract – Whether placement of CCTV for security purposes breach of privacy – Whether there was insubordination – Whether claimant had genuine intent to serve company – Industrial Relations Act 1967
Kong Sow Kam v. Arah Dagang Sdn Bhd
(Ahmad Razif Mohd Sidek) [2026] 1 ILR 145 cljprime labourlaw

Employment – Breach – Breaches of contract of employment and duties of fidelity and confidentiality – Former employee set up competing business – Use of former employer's confidential information and tools – Confidentiality and non-disclosure obligations contained in employment contract and non-disclosure agreement – Elements of each alleged breach – Whether breaches established
Inhome Group Sdn Bhd v. Dream Home Structural Works Sdn Bhd & Anor
(Azlan Sulaiman J) [2026] 1 ILR 1 cljprime labourlaw

Employment – Dismissal – Misconduct – Employee accepted substantial benefits from employer's contractor – Fundamental breach of integrity, loyalty and trust and employer's zero-tolerance policy on bribery and corruption – Employee dismissed from employment – Whether charges proven – Whether employee dismissed with just cause or excuse – Industrial Relations Act 1967, ss. 20(3) & 30(5)
Johnny Lau Kah Beng v. Petroliam Nasional Berhad (PETRONAS)
(Mohd Taufik Mohd Yusoff) [2026] 1 ILR 113 cljprime labourlaw

Employment – Dismissal – Probationer – Senior position – Misconduct – Abuse of power, conflict of interest, tardiness, absence without leave and usage of vulgar/inappropriate language – Employer decided not to confirm employment of probationer – Whether company justified in not confirming probationer – Whether misconduct proven on balance of probabilities – Whether misconduct constituted serious misconduct – Industrial Relations Act 1967, s. 20(3)
Salina Kamarudin v. UMPSA Holdings Sdn Bhd
(Paramalingam J Doraisamy) [2026] 1 ILR 64 cljprime labourlaw

Employment – Dismissal – Redundancy – Retrenchment – Employee retrenched following boardroom tussle involving her husband (director) and other shareholders – Whether redundancy sham to mask victimisation and unfair labour practices – Whether spousal relationship valid ground for garden leave or termination – Whether dismissal with just cause or excuse – Industrial Relations Act 1967
Chung Lee Chu v. Revenue Harvest Sdn Bhd & Anor
(Augustine Anthony) [2026] 1 ILR 210 cljprime labourlaw

Employment – Dismissal – Termination guised as non-renewal of fixed-term contract – Employee employed for specific project – Whether contract had expired – Whether project completed – Whether termination premature – Whether employer entitled to terminate employee before occurrence of specified event – Whether fixed-term employee entitled to same protection as permanent employee – Whether dismissal without just cause or excuse – Industrial Relations Act 1967, s. 20(3)
Wong Si Jing v. China Communications Construction Company (M) Sdn Bhd
(Andersen Ong Wai Leong) [2026] 1 ILR 169 cljprime labourlaw

Employment – Dismissal – Unfair dismissal – Termination of fixed-term service contract – Contract of service allegedly invalid due to lack of Board of Directors' approval – Whether irregularity provided just cause or excuse for dismissal – Whether termination premature, unilateral and mala fide – Industrial Relations Act 1967, ss. 20(3) & 30(5) Mohd Fitri Ibrahim v. Yayasan Islam Pulau Pinang
(Jeyaseelen T Anthony) [2026] 1 ILR 89 cljprime labourlaw

Industrial Court – Jurisdiction – Dismissal – Claim by employee against employer – Whether employer instrumentality or agency of Government – Whether Industrial Court seized with requisite threshold jurisdiction to entertain, inquire into or adjudicate upon claim – Industrial Relations Act 1967
Nor Fardzliah Jaafar v. Perbadanan Nasional Bhd
(Amrik Singh) [2026] 1 ILR 51 cljprime labourlaw

Wages – Allowance – Reduction – Appeal against decision of Labour Department – Allowance of employees unilaterally reduced and rescinded by employer – Whether allowance formed part of wages – Whether deduction made in accordance with Employment Act 1955 – Whether allowance could be rescinded – Whether employees agreed to deduction of allowance
Jetvalet Sdn Bhd v. Lukman Hakim Mohd Zaki & Anor
(Shahnaz Sulaiman J) [2026] 1 ILR 43 cljprime labourlaw

TORT

Passing off – Claim – Former employee setting up competing business – Use of former employer's confidential information and tools – Whether there was passing off – Whether goodwill and reputation established
Inhome Group Sdn Bhd v. Dream Home Structural Works Sdn Bhd & Anor
(Azlan Sulaiman J) [2026] 1 ILR 1 cljprime labourlaw

Unlawful interference with trade – Claim – Former employee set up competing business – Use of former employer's confidential information and tools – Whether liability arose from breaches of contract and intellectual property infringement – Whether unlawful interference with trade established
Inhome Group Sdn Bhd v. Dream Home Structural Works Sdn Bhd & Anor
(Azlan Sulaiman J) [2026] 1 ILR 1 cljprime labourlaw

WORDS & PHRASES

'laknat' – Meaning of – Curse word in Malay language – Claimant used curse word and inappropriate language targeted at superior in WhatsApp group with staff – Whether usage of inappropriate language towards superior constituted serious misconduct – Whether amounted to act of incitement towards hatred and insubordination
Salina Kamarudin v. UMPSA Holdings Sdn Bhd
(Paramalingam J Doraisamy) [2026] 1 ILR 64 cljprime labourlaw

INDEKS PERKARA

UNDANG-UNDANG BURUH

Perkhidmatan – Penamatan – Penamatan tidak adil – Guru lelaki memasuki bilik darjah sewaktu murid perempuan menukar pakaian – Guru lelaki dan murid perempuan mempunyai hubungan bapa dan anak – Tujuan masuk untuk menyapu krim ubat pada anak – Guru didapati melanggar polisi majikan dan ditamatkan perkhidmatan – Sama ada tindakan adalah salah laku yang mewajarkan pemecatan – Sama ada terdapat elemen niat jahat – Sama ada syarikat gagal mengambil kira penjelasan dalam jawapan surat tunjuk sebab – Sama ada penamatan dibuat atas sebab dan alasan yang adil – Akta Perhubungan Perusahaan 1967, ss. 20(3) & 30(5)
Timothy James Bottomley lwn. The Alice Smith Schools Association
(Mohd Zulbahrin Zainuddin) [2026] 1 ILR 185 cljprime labourlaw

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