ISSUE 1/2023 - CEO FAILS TO PROVE CONSTRUCTIVE DISMISSAL:
Court of Appeal case of MATRIX GLOBAL EDUCATION SDN BHD v. FELIX LEE ENG BOON.
The Court dealt with an alleged constructive dismissal before the Industrial Court where the employee claimant/respondent, a legally-qualified Chief Executive Officer of the appellant company, asserted that he had been dismissed without just cause and excuse by being forced to resign.
The Industrial Court believed him and made an award of back wages and compensation in lieu of reinstatement, an award the High Court affirmed.
The Court of Appeal held, inter alia, that the appellant did not commit any actions which were fundamental breaches. Therefore, the respondent’s claim of constructive dismissal (even if there were, the respondent’s delay and conduct of entering into negotiations had affirmed the said breaches) was not justifiable.
Further, the Court found that the respondent had resigned from his employment with the appellant on agreed terms, which the appellant had discharged.