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LLB Bulletin #7/2026 9 July 2026

LATEST CASES (ILR Issue 6 of 2026)

SUBJECT INDEX

CONTRACT

Employment contract – Breach – Constructive dismissal – Forced resignation – Transfer and salary reduction – Human Resource Manager transferred to Business Development Executive and basic salary unilaterally reduced – Whether transfer within managerial prerogative – Whether unilateral reduction of salary constituted fundamental breach going to root of employment contract
Oon Poh Yi v. Kolhub Sdn Bhd
(Amrik Singh) [2026] 2 ILR 585 cljprime labourlaw

COURTS

Industrial Court – Jurisdiction – Extra-territorial jurisdiction – Foreign employee employed by foreign entity and seconded to Malaysian company – Employment contract governed by laws of Bermuda and subject to exclusive jurisdiction of Bermuda Courts – Salary paid by foreign entity in foreign currency – No separate employment contract executed with local company – Termination of employment by foreign entity – Whether Industrial Court seized with jurisdiction to adjudicate dismissal by foreign entity not named as party to claim – Whether secondment created local employment relationship – Whether local company real employer
Geoffrey Loh Thien Yu v. Dowell Schlumberger (Malaysia) Sdn Bhd
(Zulhelmy Hasan) [2026] 2 ILR 605 cljprime labourlaw

LABOUR LAW

Employment – Dismissal – Constructive dismissal – Forced resignation – Transfer and salary reduction – Human Resource Manager transferred to Business Development Executive and basic salary unilaterally reduced – Whether transfer within managerial prerogative – Whether unilateral reduction of salary constituted fundamental breach going to root of employment contract – Whether employee gave employer sufficient notice and opportunity to remedy breach – Whether employee delayed in treating herself as constructively dismissed – Industrial Relations Act 1967, s. 20(3)
Oon Poh Yi v. Kolhub Sdn Bhd
(Amrik Singh) [2026] 2 ILR 585 cljprime labourlaw

Employment – Dismissal – Defence – Employee asserted he lacked computer literacy, was deficient in English, and merely carried out data manipulation on explicit operational directives of immediate superiors – Failure to produce corroborative evidence or witness to support contentions – System and forms operated at factory fully in English – Whether defence sustainable – Whether employee duty-bound to obey dubious and plainly unlawful directives
Ngooi Chee Wen v. Desa Cargill Sdn Bhd
(Indra Ayub) [2026] 2 ILR 541 cljprime labourlaw

Employment – Dismissal – Employee escalated unresolved workplace harassment grievance to international headquarters – Immediate issuance of show cause letter and subsequent summary dismissal by local management – Whether disciplinary action manoeuvre for damage control – Whether there were malice and retaliation – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, s. 20(3)
Kuhendran Rajan v. American Express (Malaysia) Sdn Bhd
(Augustine Anthony) [2026] 2 ILR 456 cljprime labourlaw

Employment – Dismissal – Misconduct – Misrepresentation – Material non-disclosure and misrepresentation during job interview – Employee failed to disclose active disciplinary complaint and highly strained relationship with former employer – Express representations made during interview that parties were on good terms – Honesty and loyalty core values of employer – Employee dismissed from employment – Whether non-disclosure deliberate act to secure employment – Whether dismissal with just cause and excuse – Industrial Relations Act 1967
Jamie Iskandar Tang v. Jerald Gomez & Associates
(Augustine Anthony) [2026] 2 ILR 568 cljprime labourlaw

Employment – Dismissal – Misconduct – Negligence – Careless attitude in discharging duties – Failure to exercise proper supervision, identify staffing shortages and reallocate manpower effectively – Declining work performance causing damage to company's business relationships and reputation – Whether negligence in duty constitutes serious misconduct – Whether warranting summary dismissal
Loganathan Rajendra v. Carsem (M) Sdn Bhd
(Rusita Md Lazim) [2026] 2 ILR 517 cljprime labourlaw

Employment – Dismissal – Misconduct – Stealing or taking company property without permission – Whether charge vague and ambiguous – Whether conflation of distinct offences prejudiced employee – Whether dishonest intention proved – Industrial Relations Act 1967, s. 30(5)
Lee Ee Chai v. Kansai Paint Asia Pacific Sdn Bhd
(Azizul Azmi Adnan, Ahmad Fairuz Zainol Abidin & Evrol Mariette Peters JJCA) [2026] 2 ILR 447 cljprime labourlaw

Employment – Dismissal – Misconduct – Systemic manipulation of computerised inventory records – Entry of 'phantom stock' and unauthorised negative recounts to artificially deflated apparent shrinkage to meet key performance indicators (KPI) – Breach of corporate code of conduct and cybersecurity protocols via sharing of login credentials – Employee dismissed from employment – Whether misconduct proven on balance of probabilities – Whether dismissal with just cause or excuse
Ngooi Chee Wen v. Desa Cargill Sdn Bhd
(Indra Ayub) [2026] 2 ILR 541 cljprime labourlaw

Employment – Dismissal – Poor performance – Allegations of persistent poor performance and minor operational errors – Employee dismissed from employment – Whether minor lapses sufficient to justify summary dismissal – Whether employee placed on performance improvement plan (PIP) – Whether there was failure by employer to set clear improvement goals and monitor progress – Whether poor performance established – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, s. 20(3)
Kuhendran Rajan v. American Express (Malaysia) Sdn Bhd
(Augustine Anthony) [2026] 2 ILR 456 cljprime labourlaw

Employment – Dismissal – Probationer – Performance – Failure to meet key deliverables, operational targets and performance expectations – Poor performance resulting in customer escalations, severe quality deficiencies and cancellation of orders from loyal clients – Excessive use of sick leave during probationary period – High-ranking employee receiving high salary – Whether higher standard of performance and accountability expected – Whether termination bona fide exercise – Industrial Relations Act 1967, s. 20(3)
Loganathan Rajendra v. Carsem (M) Sdn Bhd
(Rusita Md Lazim) [2026] 2 ILR 517 cljprime labourlaw

Employment – Dismissal – Retrenchment – Redundancy arising from corporate reorganisation and relocation – Allegations of actual structural integration and surplus labour – Failure to adduce documentary evidence of rationalisation plan or objective selection criteria – Whether there was bona fide exercise of managerial prerogative – Whether there was compliance with last in first out (LIFO) principle – Whether cost-cutting measures taken prior to termination of employees – Whether retrenchment measure of last resort – Whether severance compensation adequate – Whether dismissal with just cause or excuse – Industrial Relations Act 1967
Wan Norizan Ahmad v. Autov Mando Sdn Bhd
(Selva Rani Thiyagarajan) [2026] 2 ILR 479 cljprime labourlaw

Employment – Environment of workplace – Employee subjected to bullying, intimidation and severe harassment by team leader – Failure of employer to investigate or resolve internal grievances – Employer shielded perpetrator and nitpicked employee – Whether employer breached implied duty of mutual trust and confidence
Kuhendran Rajan v. American Express (Malaysia) Sdn Bhd
(Augustine Anthony) [2026] 2 ILR 456 cljprime labourlaw

Industrial Court – Dismissal – Employee dismissed from employment due to misconduct of stealing or taking company property without permission – Whether Industrial Court applied correct standard of proof – Whether reference to elements in Penal Code constituted misdirection – Whether High Court substituted own assessment of facts for that of Industrial Court – Whether High Court erred in interfering with findings of fact by Industrial Court
Lee Ee Chai v. Kansai Paint Asia Pacific Sdn Bhd
(Azizul Azmi Adnan, Ahmad Fairuz Zainol Abidin & Evrol Mariette Peters JJCA) [2026] 2 ILR 447 cljprime labourlaw

Industrial Court – Jurisdiction – Foreign employee employed by foreign entity and seconded to Malaysian company – Employment contract governed by laws of Bermuda and subject to exclusive jurisdiction of Bermuda Courts – Salary paid by foreign entity in foreign currency – No separate employment contract executed with local company – Termination of employment by foreign entity – Whether Industrial Court seized with jurisdiction to adjudicate dismissal by foreign entity not named as party to claim – Whether secondment created local employment relationship – Whether local company real employer
Geoffrey Loh Thien Yu v. Dowell Schlumberger (Malaysia) Sdn Bhd
(Zulhelmy Hasan) [2026] 2 ILR 605 cljprime labourlaw

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