Termination/dismissal of employment

1 1 Termination/dismissal of employmentDr. Zoharah OmarDCE 5643 Employee, Organization and Community RelationsIntroduction Securityoftenureinemploymentisimportantt oeveryemployeeashehasaneconomicinterestt oremaininthejobaslongasheiscapableofdoin ghisjoboruntilheattainsretirementage(Ash garAli,2007). Workisoneofthemostfundamentalaspectinape rson 'semploymentisanessentialcomponentofhiso rhersenseofidentity,self-worthandemotion alwell-being.(RePublicServiceEmployeeRel ationsAct[1987]1 SCR313citedbyAshgarAli2007) Therighttolivelihoodisconstitutionallygu aranteedunderArticle5(1)oftheFederalCons titution(GopalSriRam,2007)2 Safeguards of security of tenure in employment inMalaysia Privatesectoremployee: S20 IRA dismissalmustbewithjustcauseandexcuse. Thejustcauseandexcusemustbebasedonfactso feachcase,eitheramisconduct, [GreatWallShoppingSdnBhdvGanShangengAwar d241of1988] Publicsectoremployee: Art135 FederalConstitution: dismissal underart135(2),thecivilservantisentitled toareasonableopportunityofbeingheardBala nce betweenemployee security of tenureandemployer right to terminate/dismiss employees Private sector employees: S13(3) IRA termination and dismissal of employees are regarded asmanagement prerogatives which includes: thepromotionbyanemployer; thetransferbyanemployerofaworkmanwithint heorganizationofanemployer'sprofession,b usiness,tradeorwork,providedthatsuchtran sferdoesnotentailachangetothedetrimentof aworkmaninregardtohistermsofemployment; theemploymentbyanemployerofanypersonthat hemayappointintheeventofavacancyarisingi nhisestablishment.

2 Theterminationbyanemployeroftheserviceso faworkmanbyreasonofredundancyorbyreasono fthereorganizationofanemployer'sprofessi on,business,tradeorworkorthecriteriafors uchtermination; thedismissalandreinstatementofaworkmanby anemployer; S12 EmploymentAct1955 Terminationwithnotice ,onlyallowedforthefollowingreasons: theemployerhasceased,orintendstoceasetoc arryonthebusiness theemployerhasceasedorintendstoceasetoca rryonthebusinessintheplaceatwhichtheempl oyeewascontractedtowork therequirementsofthatbusinessfortheemplo yeetocarryoutworkofaparticularkindhavece asedordiminishedorareexpectedtoceaseordi minish therequirementsofthatbusinessfortheemplo yeetocarryoutworkofaparticularkindinthep laceatwhichhewascontractedtoworkhaveceas edordiminishedorareexpectedtoceaseordimi nish theemployeehasrefusedtoaccepthistransfer toanyotherplaceofemployment,unlesshiscon tractofservicerequireshimtoacceptsuchtra nsfer achangehasoccurredintheownershipofthebus inessforthepurposeofwhichanemployeeisemp loyedorofapartofsuchbusiness,regardlesso fwhetherthechangeoccursbyvirtueofasaleor otherdispositionorbyoperationoflaw, Section13,EA,1955-Terminationofcontractw ithoutnotice (1)

3 Eitherpartytoacontractofservicemaytermin atesuchcontractofservicewithoutnoticeor, ifnoticehasalreadybeengiveninaccordancew ithsection12,withoutwaitingfortheexpiryo fthatnotice,bypayingtotheotherpartyanind emnityofasumequaltotheamountofwages (2) Section14EA,1955 Anemployermay,onthegroundsofmisconductin consistentwiththefulfillmentoftheexpress orimpliedconditionsofhisservice,afterdue inquirydismisswithoutnoticetheemployee Section15EA,1955 An employee shall be deemed to have broken his contract ofservice with the employer if he has been continuously absentfrom work for >2 consecutive working days without prior leavefrom his employer, unless he has a) a reasonable excuse forsuch absence and b) has informed or attempted to inform hisemployer of such excuse prior to or at the earliest opportunityduring such absence Publicsectoremployees: Article132(2)oftheFederalConstitution Whoarepublicservants?

4 (a)thearmedforces;(b)thejudicialandlegal service;(c)thegeneralpublicserviceoftheF ederation;(d)thepoliceforce;(f)thejointp ublicservicesmentionedinArticle133;(g)th epublicserviceofeachState;and(h)theeduca tionservice. Article132(2A)Everypersonwhomentionedin( a),(b),(c),(d),(f)and(h)ofholdsofficedur ingthepleasureoftheYangdi-PertuanAgong,a nd,everypersonwhoisamemberofthepublicser viceofaStateholdsofficeduringthepleasure oftheRulerorYangdi-PertuaNegeri. Article135FC vs. Dismissal Private Sector employees Isthereanydifferencebetweenterminationof employment &dismissalforprivatesectorempl oyees? Termination=terminationoftheemploymentco ntracteitherbyemployerforspecificreasons suchasretrenchmentorbyemployeewhenheresi gns(Ayadurai,1998). Dismissal=anactofanemployertoterminateth econtractofserviceunilaterally(AhmadMir& Kamal,2003). Dismissalisaformofterminationofemploymen twhereanemployeeisdismissedduetomiscondu ct,negligenceorpoorperformance( ).

5 Employeeterminationordismissalmustbewith justcauseandexcuseandthecommonlawprincip leof terminationsimpliciter ( )isnotapplicableinviewofs20oftheIndustri alRelationsAct. TheFederalCourt,inthecaseofGoonKweePhoyv J&PCoats[1981]2 MJL129held: [1981]1 MLJ304held: .. Therefore, Public Sector Employees Madedistinctionbetweenterminationanddism issal: AppointmentatpleasureoftheYDPA/StateRule r governmentservantcanbeterminatedatpleasu rebygivingnoticeorpaymentinlieuofnoticet oendthecontract.[Doctrineofpleasure] Terminationofservicedifferedfromdismissa linthatitdidnotipsofactoentailforfeiture ofeligibilityforapension[MahanSinghvGovt ofMalaysia,1978 Appealno5of1976. Publicservantcanbeterminatedatanytimeatt hepleasureoftheCrownsubjecttorestriction sundertheFC Contractemployeesemployedbygovernmentcan beterminated[MahanSinghvGovtofMalaysia,1 978 Appealno5of1976. Onlyifdismissedrighttobeheardshouldbegiv en(Art135FC).]]

6 Dismissalcarriesapenalelement(asaformofp unishment). Termination of employment in consequence of a recommendation of a Disciplinary Authorityunder reg. 30(11) constitutes dismissal for the purposes of Article 135(2) of theConstitution Case: Government of Malaysia v Lionel[1974] 1 MLJ 3 (PC).6 Zakiah scaseTermination of the contract of employment underthe Malaysian Laws Death to employees Resignation Termination under S13(2), S12(1) EA 1955 Breach of contract under S15 EA Misconduct Poor performance Termination at the end of probation period Expiry of fixed term contract Frustration of contract Change of business ownership, closure of business Insolvency Redundancy & Retrenchment, VSS Retirement7 Death of employees Death to employees the employment will automaticallyterminate. Employer still responsible to pay salary/benefit earned but nutpaid to the deceased personal representatives.

7 [Kumpulan GuthrieSdnBhdvSukumariAmmaNMenonAward No. 33/73.] If claiming unjust dismissal under S20 IRA and thereafterdeceased the legal representative or administrator of estateof the deceased cannot continue with the action because onlyremedy under S20 IRA is reinstatement. Industrial Courtcannot reinstate a dead man (Netto, 2009;ThienThamSang v United StatesArmy Medical Research Unit &Anor(1983) 2 MLJ under S 13 & 12 EA TerminationunderS13(2) (eg:failuretopaywages) TerminationunderS12 givenoticetoterminateduetoreasonsstatedi nS12(3).Noticeofterminationmustbegiven8 Termination under S15 EA Absent for more than 2 consecutive working days Without valid reason Fail to or attempt to inform employerTermination for misconduct Definition of misconduct improper behavior, intentional wrong-doing or deliberateviolation of a rule or standard of conductinconsistent with the faithful discharged of his duties.)

8 [Holiday InnKuchingv Elizabeth CS Lee Award No. 255 of1990] An act or conduct that adversely affects employees dutiestowards the employer. The misconduct complained of musthave some relation with employees duties or the workentrusted to him by the employer. Any breach of an expressor implied duty on the part of an employee, unless it be oftrifling nature would amount to a misconduct [ No542/1995].9 Misconduct Misconduct can be either minor or major theclassification affects the penalty chosen Gross misconduct action that warrant summarydismissal or severe disciplinary action on one singleincident. A single act of misconduct may justify dismissal only where themisconduct is such that it goes to the root of the contractualrelation of master and servant (Transport Workers Union v Kartar &Sundar Singh Omnibus Co. Ltd (Award 7 of 1970). Minor misconduct offences that only warrants verbalwarning for single incident but progress to more severedisciplinary action and eventual dismissal for persistentoffender.)

9 Progressive DisciplineActs treated as misconduct Disobedience Theft, fraud Willful damage or loss of employer s goods Habitual absence Habitual late attendance Drunkenness, fighting Sleeping during working hours Habitual negligence Smoking in prohibited areas Failure to follow safety rules Sexual Harassment Resorting to industrial action in contravention of the provisions of theIndustrial Relation Act or otherlaws For Public Servant types of misconduct is stated in Article 4 18 of thegeneral Harassment is a misconduct Melewar Corporation Bhd lwn. Abu Osman (1994)2 ILR 807 Sexual harassment is a misconduct An employer owes a contractual obligation to his employees,female or otherwise to ensure that he provides a safe andconducive working environment in which they can function. In thecontext of the problem of sexual harassment in the workplace, itcannot be emphasized strongly enough that the employer would bein breach of a fundamental and essential term of the contracts ofemployment existing between the employer and his employees ifhe failed to take steps to put a stop to acts of sexual harassmentwhich had been duly brought to his attention.

10 Claim for constructive dismissal inJennico & Associates SdnBhd lwn. Lillian Theresa de Costa (1996), Sitt Tat Bhd Ganapragasam (2002) private in nature Iflegitimateinterestoftheemployerisjeopa rdizedorinjuredbytheemployeesprivatecond uctdisciplinaryactioncanbetaken[Subraman iam&SarathambalvMerlimauPegohLtdAward2of 1975] Foranemployeetobejustifiabledismissedont hegroundofhisprivateconduct,ithastobeofe xceptionalgravityorbecapableofdamagingth eemployer sbusiness.[TransportWorkersUnionvSyarika tPengangkutanKemajuanSriPerakBhdAward161 of1981]11 Example of cases Sellingsamsuto workers. Activities did not affect his performance. Nosuggestion that the productivity of various tapper has declined due tointoxication. However illegal sale ofsamsudid affect the legitimateinterest of the estate dismissal upheld. [Subramaniam&SarathambalvMerlimauPegohLt d Award 2 of 1975].