You are using an older browser version. Please use a supported version for the best MSN experience.

Federal Court upholds decision on exec’s constructive dismissal

Free Malaysia Today logo Free Malaysia Today 20/1/2022 V Anbalagan
a person standing in front of Baiturrahman Grand Mosque: The Federal Court says the three questions framed by the former employer of insurance company executive Ng Teck Fay failed to fulfil the requirement under Section 96 of the Courts of Judicature Act. © Provided by Free Malaysia Today The Federal Court says the three questions framed by the former employer of insurance company executive Ng Teck Fay failed to fulfil the requirement under Section 96 of the Courts of Judicature Act.

PUTRAJAYA: The Federal Court today affirmed the findings of the Court of Appeal last year that a former insurance company executive was constructively dismissed after he was downgraded in ranking.

In turning down the application by Syarikat Takaful Malaysia Bhd for leave to appeal the case, it said the three legal questions framed by the company failed to fulfil the requirement under Section 96 of the Courts of Judicature Act.

The bench comprised chairman Abdul Rahman Sebli, Zaleha Yusof and Rhodzariah Bujang.

It awarded RM30,000 in costs to the respondent, Ng Teck Fay, in a virtual proceeding.

Lawyer J Shamesh, who represented Ng, told FMT the parties would return to the Industrial Court to assess compensation and other benefits due to him for a maximum of 24 months

In September last year, Court of Appeal judge Lee Heng Cheong said the bench was of the opinion that Syarikat Takaful’s move to “regrade” Ng from his post as assistant general manager (Grade 3) to senior manager (Grade 4) in a restructuring exercise amounted to a breach of his employment contract.

He said this entitled Ng to deem himself constructively dismissed despite his acceptance of the company’s decision.

Lee said that as the assistant general manager, Ng was the head of the Business Unit, Family, Group and Medical Claims.

When Ng was regraded, he said, the employer took away the medical claims administration from his original scope of responsibilities and gave it to Sharon Ang, who had just been employed.

“This resulted in the appellant (Ng) having lesser responsibilities. Further, when the appellant was demoted to senior manager, the company took away one deputy manager and one assistant manager who were reporting to him,” he had said in his judgment.

Judges Lau Bee Lan and Mohd Sofian Abdul Razak were the other two judges who heard the appeal with Lee.

Lee said the benefits enjoyed by Ng were also reduced because of his demotion.

He said the Industrial Court chairman and the High Court had failed to consider that an employee cannot be demoted, regraded “or whatever name it is called”, to a post which

he never held before.

Ng started his employment as an assistant general manager on April 11, 2008 and his last-drawn monthly salary was RM17,150.

More from Free Malaysia Today

Free Malaysia Today
Free Malaysia Today
image beaconimage beaconimage beacon