industrial court malaysia - Malaysian Legal and Tax Information Centre

was only reasonable that the first respondent be awarded backwages for
the remainder of the unexpired term of his fixed term contract, which was
what the chairman of the Industrial Court did.”
b) In the case of Shapadu Energy & Engineering SB b. Stuart Ashley
Eban [1999] MLJ 250, the High Court affirmed the decision of the
Industrial Court as follows:
“The Court holds that it is a breach of the Company to disallow the
Claimant to work out of the unexpired duration of the twelve months fixed
term contract.
Therefore, the Claimant's remedy in this dispute is the
unexpired period of his fixed term contract. There is no question of
reinstatement. This Court will only make an order of compensation of loss
of employment from the date of termination to the expiry date of the twelve
months' contract.”
The Company has submitted (paragraphs 48 to 57, Company's Submission) that
the Claimant should only be awarded 10 months back-wages (i.e the balance of
his unexpired contract period). Their reasoning is that it's fixed-term contract
(Exh 3, SOC), which contract, on the face of it, stipulates “Your employment
shall start on 1 May 2008 and shall be for a period of two (2) years from the
start date”.
Payment of 3 months salary
When the Claimant's employment was terminated he was paid a payment of 3
month's salary in lieu of 3 months notice, which will be deducted.
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