industrial court malaysia - Malaysian Legal and Tax Information Centre

The principle in Han Chiang appears to be that there must be clear facts to
establish permanency of employment and to rebut the outward appearance of
the fixed term nature of the contract. The Han Chiang situation is the exception
to the rule.
The Han Chiang case was distinguished in M Vasagam case. The Industrial
Court in M Vasagam case upon examining the facts of the case found that
there was a genuine fixed term contract.
Fixed Term -The Arguments
Burden of Proof
The Company submitted that it was the Claimant's burden to prove that his
contract was permanent and not a genuine fixed-term contract.
The Claimant submitted that the burden was on the Company to adduce
evidence to show that it was a genuine fixed-term contract.
The Court is of the view that it is the duty of the Court to ascertain from the
facts before it whether the case comes within the exceptional situation as
in Han Chiang case. There must be clear facts to establish permanency of
employment and to rebut the outward appearance of the fixed term
nature of the contract.
The Claimant's Arguments
It was submitted on behalf of the Claimant that it was not the intention of the
parties that the Claimant's employment with the Company was to be only for a 2
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