The Court of Appeal has upheld a High Court decision recognising a former production director as an employee of his company and ruling that he was unfairly dismissed.
A three-member panel chaired by Justice Azhahari Kamal Ramli unanimously upheld the High Court’s award of RM492,000 in back wages, equal to 24 months of the late V Rajkumar’s salary and allowances. The final sum payable is RM472,000 after a deduction of RM20,000.
The panel, which included Justices Ahmad Kamal Shahid and Latifah Tahar, allowed an appeal by the company, Suntech Engineering Korea Co Ltd, to set aside an additional RM50,000 awarded as punitive compensation.
Azhahari said Rajkumar’s evidence about his appointment had not been rebutted, as the company had failed to call its material witness to testify, and that the evidence was enough to establish the company’s liability.
Rajkumar was appointed director of production in May 2019 at a monthly salary of RM20,000 plus a RM500 petrol allowance, but was denied access to his workplace at the Lumut shipyard on Oct 1, 2019. The Industrial Court dismissed his unfair dismissal claim in August 2024, finding he had not established an employment relationship, but the High Court overturned that ruling on judicial review last year.
Rajkumar died four months ago while the company’s appeal was pending, and his widow was appointed to continue the proceedings on his behalf.
This article is general information, not legal advice. For advice on your own situation, speak to a lawyer.