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LLB Bulletin #8/2026 10 August 2026

LATEST CASES (ILR Issue 6 of 2026)

SUBJECT INDEX

CONTRACT

Breach of confidence – Confidential information – Customer ecosystem and relational capital – Facebook group acting as concentrated body of niche consumers with demonstrated purchasing behaviour – Whether accumulated customer-related and business-related data in social media group constituted protectable confidential information – Test for establishing commercial value and legal protection
Sapelo Management Sdn Bhd v. Feezal Shazlee Rahmat & Anor
(Muhammad Adam Abdullah JC) [2026] 3 ILR 17 cljprime labourlaw

Employment contract – Breach – Constructive dismissal – Employee subjected to workplace aggression and intimidation by superior – Employer treated grievance as performance issue and work miscommunication – Failure of employer to conduct focused investigation into superior's conduct – Whether breach of obligation to provide safe and respectful working environment – Whether there was breach of implied term of mutual trust and confidence – Whether there was constructive dismissal
Sofiah Yusof v. M7 Valley Berhad
(Pravin Kaur Jessy) [2026] 3 ILR 138 cljprime labourlaw

Employment contract – Breach – Constructive dismissal – Issuance of warning letter for late notification of absence – Employee diagnosed with acute depression and medically certified unfit for work – Medical certificates delivered to employer prior to issuance of warning letter – Conversion of certified medical leave into unpaid leave – Whether employer's actions punitive, oppressive and retaliatory – Whether there was breach of employment contract – Whether there was constructive dismissal
Sofiah Yusof v. M7 Valley Berhad
(Pravin Kaur Jessy) [2026] 3 ILR 138 cljprime labourlaw

Employment contract – Terms and conditions – Express policies – Islamic banking institution – Obligation to adhere strictly to Shariah guidelines and governance policies – Breach – Senior officer allowing non-compliant activities – Senior officer dismissed from employment – Whether senior status imposed higher duty of care and accountability – Whether punishment of dismissal commensurate with gravity of misconduct
Yap Tee Kuong v. AL Rajhi Banking & Investment Corporation (Malaysia) Bhd
(Ahmad Razif Mohd Sidek) [2026] 3 ILR 171 cljprime labourlaw

DAMAGES

Remedies – Assessment – Assessment of gravity of employee's actions – Proof of sufficient causal nexus between employee's secret competition and commercial harm – Whether employer entitled to account of secret profits made during employment and unauthorised profits made via post-resignation misuse of business platform
Sapelo Management Sdn Bhd v. Feezal Shazlee Rahmat & Anor
(Muhammad Adam Abdullah JC) [2026] 3 ILR 17 cljprime labourlaw

INTELLECTUAL PROPERTY

Digital business assets – Ownership of social media platforms – Facebook group created and managed by employee using personal login – Whether digital assets created in course of employment belong beneficially and commercially to employer
Sapelo Management Sdn Bhd v. Feezal Shazlee Rahmat & Anor
(Muhammad Adam Abdullah JC) [2026] 3 ILR 17 cljprime labourlaw

LABOUR LAW

Dismissal – Constructive dismissal – Remedies – Compensation – Calculation for compensation in lieu of reinstatement and backwages – Employee unlawfully retrenched, reinstated via settlement agreement and subsequently constructively dismissed – Whether earlier dismissal broke continuity of service – Whether duration of employment calculated continuously from original date of commencement of employment – Industrial Relations Act 1967
Elangoh Arunachalam v. Beyen Sales & Services (M) Sdn Bhd
(Amrik Singh) [2026] 3 ILR 78 cljprime labourlaw

Domestic Inquiry – Procedural fairness – Failure to issue show-cause letter or conduct internal investigation – Whether breach of principles of natural justice and fundamental rights – Whether dismissal valid
Nurdiyana Izzati Hayadi v. Sonobee Ultrasound Sdn Bhd
(Rusita Md Lazim) [2026] 3 ILR 45 cljprime labourlaw

Employment – Dismissal – Constructive dismissal – Employee subjected to workplace aggression and intimidation by superior – Employer treated grievance as performance issue and work miscommunication – Failure of employer to conduct focused investigation into superior's conduct – Whether employer passive bystander to workplace hostility – Whether breach of obligation to provide safe and respectful working environment – Whether there was breach of implied term of mutual trust and confidence – Whether there was constructive dismissal – Industrial Relations Act 1967
Sofiah Yusof v. M7 Valley Berhad
(Pravin Kaur Jessy) [2026] 3 ILR 138 cljprime labourlaw

Employment – Dismissal – Constructive dismissal – Reinstatement – Employee reinstated pursuant to settlement agreement – Employer unilaterally altered employee's established job scope and core duties upon return – Failure to pay agreed salary arrears within stipulated timeline – Whether settlement agreement superseded original contract of employment – Whether contractual relationship governed concurrently by original letters of appointment and confirmation – Whether employer's conduct evinced intention no longer to be bound by essential terms of contract – Whether amounted to repudiatory breach justifying constructive dismissal – Industrial Relations Act 1967
Elangoh Arunachalam v. Beyen Sales & Services (M) Sdn Bhd
(Amrik Singh) [2026] 3 ILR 78 cljprime labourlaw

Employment – Dismissal – Employee suffered from work-related stress and hospitalised in psychiatric ward – Employee on continuous medical leave issued by Government hospital – Dismissal executed while employee on valid medical leave – Proper recourse where employer doubts health status of employee – Whether employee ought to be referred to medical board or panel doctor – Whether prolonged sick leave automatically justified summary termination – Whether there was frustration of contract
Nurdiyana Izzati Hayadi v. Sonobee Ultrasound Sdn Bhd
(Rusita Md Lazim) [2026] 3 ILR 45 cljprime labourlaw

Employment – Dismissal – Misconduct – Non-compliance with Islamic bank policies and failure to uphold Shariah governance standards – Employee senior officer in Islamic bank – Misconducts of consuming alcoholic beverages during company-sponsored event, billing personal spa treatment to bank, charging personal expenses of family members to vendor and failing to prevent subordinates from drinking alcohol – Employee dismissed from employment – Whether dismissal proportionate to misconducts committed – Whether dismissal with just cause or excuse – Industrial Relations Act 1967, s. 20(3)
Yap Tee Kuong v. AL Rajhi Banking & Investment Corporation (Malaysia) Bhd
(Ahmad Razif Mohd Sidek) [2026] 3 ILR 171 cljprime labourlaw

Employment – Dismissal – Termination of fixed term contract prior to expiry – Allegations of poor customer service, public complaints via negative online reviews, attendance discrepancies and insubordination – Employee suffered from work-related stress and hospitalised in psychiatric ward – Dismissal executed while employee on valid medical leave – Whether allegations proven by employer – Whether dismissal carried out with just cause and excuse – Industrial Relations Act 1967
Nurdiyana Izzati Hayadi v. Sonobee Ultrasound Sdn Bhd
(Rusita Md Lazim) [2026] 3 ILR 45 cljprime labourlaw

Employment – Implied duties of loyalty and fidelity – Breach of duty – Fiduciary obligations – Active competition during employment – Employee setting up rival business and selling competing products while still employed – Leveraging employer's business ecosystem, market, and customer base – Recruiting and drawing employer's brand ambassadors into rival orbit – Distinction between permissible future planning and unlawful operative steps to compete during subsistence of employment – Employee removing employer's personnel as administrators, blocking access, and renaming corporate social media group upon resignation – Whether conduct constituted neutral departure or calculated act of nefarious seizure – Whether there was misuse and commercial exploitation of employer's business platform to promote competing products post-employment – Whether breach of duties established
Sapelo Management Sdn Bhd v. Feezal Shazlee Rahmat & Anor
(Muhammad Adam Abdullah JC) [2026] 3 ILR 17 cljprime labourlaw

Employment – Remuneration – Salary deduction – Unilateral and retrospective conversion of approved annual leave during company closure into unpaid leave – Whether remuneration fundamental term going to root of employment contract – Whether employer entitled to retrospectively alter approved paid leave entitlements
Sofiah Yusof v. M7 Valley Berhad
(Pravin Kaur Jessy) [2026] 3 ILR 138 cljprime labourlaw

Employment – Retrenchment – Redundancy – Financial distress – COVID- 19 pandemic – Selection criteria – Departure from 'last in, first out' (LIFO) principle and application of best fit rule in retrenchment exercise – Whether financial distress established – Whether financial difficulties of parent company automatically attributable to subsidiary – Whether distinct legal entities – Whether contemporaneous financial reports produced to establish financial distress – Whether selection criteria reasonable and just – Whether alternative measures genuinely sought and conscientiously considered in good faith – Whether retrenchment carried out bona fide
How Zheng Hong v. Air Asia Bhd & Anor
(Azmi Ariffin, Ahmad Fairuz Zainol Abidin & Evrol Mariette Peters JJCA) [2026] 3 ILR 1 cljprime labourlaw

Retrenchment – Redundancy – Principle of last-in, first-out ('LIFO') principle – Senior employee terminated on grounds of redundancy and financial stability – Whether there was failure to adhere to LIFO principles – Whether retrenchment exercise bona fide
Elangoh Arunachalam v. Beyen Sales & Services (M) Sdn Bhd
(Amrik Singh) [2026] 3 ILR 78 cljprime labourlaw

INDEKS PERKARA

PERBANKAN

Bank dan perniagaan bank – Pembiayaan peribadi – Kelulusan dan pengeluaran pembiayaan – Salah laku dan kecuaian serius pegawai kanan – Pengesahan dokumen sokongan pemohon – Kegagalan mengesan dokumen palsu dan mematuhi pekeliling dalaman – Kewujudan tanda amaran – Standard fidusiari pegawai bank – Sama ada liabiliti boleh dialihkan pada pegawai bawahan
Mohd Hasri Saidin lwn. Koperasi Co-Opbank Pertama Malaysia Bhd
(Paramalingam J Doraisamy) [2026] 3 ILR 99 cljprime labourlaw

UNDANG-UNDANG BURUH

Pekerjaan – Pemecatan – Salah laku – Pegawai kanan koperasi bank ditamatkan perkhidmatan akibat kecuaian serius – Kelulusan dan pengeluaran permohonan pembiayaan peribadi melibatkan dokumen palsu – Kegagalan memastikan pematuhan ketat terhadap pekeliling dalaman – Sama ada kegagalan sekadar kecuaian prosedur tanpa niat jahat atau keuntungan peribadi – Sama ada pemecatan dilakukan atas sebab dan alasan adil
Mohd Hasri Saidin lwn. Koperasi Co-Opbank Pertama Malaysia Bhd
(Paramalingam J Doraisamy) [2026] 3 ILR 99 cljprime labourlaw

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