No unfair dismissal as HR manager’s fixed-term contract expired, Industrial Court rules

A person signing one of several documents spread across a dark table

The Industrial Court has dismissed a former human resources manager’s claim of unfair dismissal against technology consulting firm VDart Malaysia Sdn Bhd, ruling that her employment ended when her fixed-term contract expired.

Industrial Court chairman Augustine Anthony said D Elizebeth had failed to establish that the company had promised to make her a permanent employee, or that she had been dismissed without just cause or excuse.

Elizebeth joined VDart in September 2023 as its human resources and administration manager on a one-year contract, earning RM7,300 a month, which was raised to RM7,500 upon confirmation. As the contract neared its expiry in September 2024, the company offered her a three-month extension until Dec 13, 2024, which she accepted and signed. VDart declined to renew her contract when the extension expired.

Elizebeth claimed she had been assured of permanent employment and that the company had asked her to prepare a letter of appointment reflecting her new status. She argued that the fixed-term arrangement was a disguise for permanent employment and sought reinstatement, back wages and other benefits.

In his 28-page award, Anthony found that the documentary evidence did not support her claim. He noted that her emails acknowledged the expiry of the original contract and of the extension, and that she had accepted the extension even though the company rejected her request for a salary increase. He added that VDart’s status as a start-up with project-based operations also supported its decision to employ her on a fixed-term basis.

Anthony ruled that the contracts were genuine fixed-term contracts that had ended through the passage of time. As there had been no dismissal, the question of whether it was without just cause or excuse did not arise, and the claim was dismissed.

This article is general information, not legal advice. For advice on your own situation, speak to a lawyer.

Scroll to Top