Award 39128
Award 39128
Award 39128
BETWEEN
AND
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REFERENCE
This is a reference under Section 20(3) of the Industrial Relations Act 1967 (1967 Act)
by the Honourable Minister of Human Resources, emanates from the dismissal of
Tsung Foong Cheong @ Margaret (“the Claimant”) by Axiata Group Berhad
(“the Company”) on 24.07.2019.
AWARD
PREAMBLE
[1] This Court considered all the notes of proceedings, pleadings, the relevant oral
and documentary evidences and the cause papers in handing down this Award. The
following documents were filed before this Court:-
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[2] The dispute before this Court is the claim by the Claimant that she had been
dismissed from her employment without just cause or excuse by the Company on
24.07.2019. In this case the Claimant alleges that she was constructively dismissed
by the Company.
[4] At the time of the constructive dismissal, the Claimant was holding the position
of Contract Management Lead, which is a Level 20 designation, with a last drawn
salary of RM21,480.00 per month and fixed allowance of RM300.00 per month.
[5] The job scope of the Claimant as the Contract Management Lead included, but
were not limited to, the following:-
(i) developing and obtaining approval from the Company’s legal department
for category-specific contract templates and alternative clauses;
(ii) liaising with Legal to ensure that all contract templates are up to date;
(iii) liaising with Operating Company (OpCo) Legal to ensure that OpCo
Contracts of Adherence and Group Master Agreements are aligned;
(iv) supporting sourcing managers;
(v) developing and delivering training to sourcing managers;
(vi) acting as Master User for Ariba Contract Manager to manage access to
the system and ensure that users in the Company understand the
system; and
(vii) preparing management reports on Ariba Contract Manager.
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[6] On 22.06.2017, COW-1 had emailed the Claimant to inform her about the
change in her job scope in view of the internal restructuring of APC. As a result, the
Claimant would be reporting to COW-2, the Head of APC at the material time, instead
of Mr. Peter Chen, the Head of Capabilities & Enablement. With respect to the changes
to the Claimant’s job scope as the Contract Management Lead, her new redesigned
role will be comprised of:-
All other terms and conditions of the Claimant’s employment with the
Company remained unchanged.
[7] On 05.07.2017, the Claimant had emailed COW-1 and COW-2 to confirm her
acceptance to her redesigned role as Contract Management Lead. The Claimant was
to begin reporting to COW-2 from 01.08.2017 onwards.
[8] In or around May 2018, COW-2 had informed the Claimant that her reporting
line would be changed to Saravanan Moorthy (Saran). COW-2 also informed the
Claimant that he had delegated his authority to Saran to approve the Claimant’s leaves
and mobility at work.
[9] On 22.01.2019, the Claimant had submitted her 2018 EPP to Saran for his
review and received his review thereafter on 20.02.2019. For the Claimant’s overall
performance and behaviour, Saran had given the Claimant a rating of ‘Well Done’.
[10] On 19.04.2019, the Claimant was caught by surprise when COW-2 met with
her to provide her with the 2018 Ignite Performance Profile and bonus payout letter
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dated 18.04.2019 (Bonus Payout Letter). In the Bonus Payout Letter, the Claimant’s
overall EPP had been rated as ‘Need Improvement’.
[12] On 10.05.2019, the Claimant met with Linden, to discuss the unfair appraisal
of her 2018 EPP by Saran and COW-2 (APC Management). Linden subsequently
arranged for a meeting with the Claimant and the APC Management on 29.05.2019.
The issues discussed during the said meeting were summarised by the Claimant in her
email to Linden and COW-4 on 03.06.2019.
[14] On 27.06.2019, Saran had emailed the Claimant for the purpose of setting the
2019 KPI.
[15] On 02.07.2019, the Claimant had responded to Saran’s email, stating that the
2019 KPI is unachievable for her. The Claimant was still being ousted from her job
functions and did not have new projects and/or contracts coming in, which would
prevent her from performing her duties and fulfilling the 2019 KPI. As such, the
Claimant would not be able to finalise the 2019 KPI.
[16] On 08.07.2019, a meeting was held between the Claimant, the APC
Management and Linden to discuss the 2019 KPI. During the meeting, the Claimant
again explained that she would not be able to achieve the 2019 KPI in view of her
circumstances as detailed above.
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[17] There was no conclusion nor agreement to the 2019 KPI as the Claimant had
maintained that she would not be able to agree to something which is unrealistic and
unachievable as it would mean inevitable failure in meeting the 2019 KPI on the
Claimant’s part.
[19] The Claimant had been pushed out of her job functions as Contract
Management Lead for four (4) consecutive months and continuing.
[20] By setting the 2019 KPI which was unachievable and unrealistic, the Company
set the Claimant up to fail in the performance of her 2019 duties, making it a certainty
that she would be put on PIP.
[21] During the 2019 KPI discussion held on 08.07.2019, the Claimant requested for
her job and her Level 20 work to be restored and for the APC Management to stop
ousting her from her job. In response, Saran stated that the Claimant would only be
restored to her original job if she accepted the Company’s 2019 KPI set for her. The
Claimant contends that the Company had oppressed, imposed undue pressure and
duress for her to accept the unachievable 2019 KPI.
[22] Due to the Company’s failure to respond to the Claimant by 23.07.2019, the
Claimant had subsequently emailed her Letter of Resignation and Notice of
Constructive Dismissal (Notice of Constructive Dismissal) to COW-4 on 24.07.2019 at
1.17 pm.
[23] The Claimant first commenced employment with Axiata Management Services
as Contract Management Manager on 01.11.2012.
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[25] The Claimant was informed on 13.03.2015 that her position title had been
confirmed as Contract Management Lead.
[26] The Claimant was then promoted from Job Grade “E19” to “E20” effective
01.04.2015 as Contract Management Lead.
[27] Based on her job description, the Claimant’s scope of work as Contract
Management Lead included the following:-
(i) Developing and obtaining approval from the Legal Department (“Legal”)
for category-specific contract templates;
(ii) Liaising with Legal to ensure that all templates are kept up to date;
(iii) Working with the legal department of the Operating Companies
(“OpCo”) to ensure that the OpCo Contracts of Adherence and Group
Master Agreements are aligned;
(iv) Supporting sourcing managers;
(v) Developing and deliver training for sourcing managers;
(vi) Acting as the Master User for Ariba Contract Manager; and
(vii) Preparing management reports.
[28] Sometime in January 2017, there was a disagreement between the Claimant
and her then superior, Mr. Peter Chen pertaining to the behaviour assessment in her
performance appraisal for the year 2016.
[29] In an email dated 12.01.2017 Mr. Peter Chen had observed several areas for
the Claimant to improve on, namely: (page 17 of COB-1)
(i) The Claimant’s reluctance to take on crucial tasks which were within her
capability/competence,
(ii) The Claimant’s insistence on having her job description updated before
considering taking up an additional task,
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(iii) The Claimant’s repeated claims that she was unable to adequately
accomplish her tasks due to purportedly being kept out of the loop, lack
of transparency and withheld information,
(iv) Hands-off approach in the final stage of the closure of the Ncell LTE
SOW discussions.
[30] After several discussions between the Claimant, Mr. Peter Chen and COW-2, it
was agreed that the Claimant would report to COW-2 based on a “redesigned” role.
[31] During a meeting on 15.06.2017, it was explained to the Claimant that her role
as Contract Management Lead would be changed and redesigned to cater to the needs
of the business due to an internal restructuring of the Axiata Procurement Centre
(APC). The Claimant’s redesigned role, which she agreed to, was as follows:-
[33] Following the year-end performance appraisal for the Financial Year 2018
(“FY2018”), the Claimant was given a performance rating of “Needs Improvement”
[34] Dissatisfied with the rating she had received, the Claimant escalated her
grievances to COW-4 on 23.04.2019.
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[35] After discussions between the Claimant, Mr. Saran and COW-2 which were
facilitated by the Human Resources Department to ensure that all parties were duly
given the opportunity to be heard, the Company’s Senior Management decided to
maintain the Claimant’s “Needs Improvement” rating.
[36] On 09.07.2019, the Claimant submitted Notice of Grievance dated the same
day wherein she raised various issues pertaining to her FY2018 rating, purportedly
being ousted from her job function and given unachievable KPIs for 2019.
[37] On 24.07.2019, the Claimant submitted her resignation letter and claimed
constructive dismissal vide Notice of Constructive Dismissal dated 24.07.2019. The
Company addressed the Claimant’s Notice of Grievance vide an email dated
24.07.2019.
[39] The Claimant however maintained that she was allegedly constructively
dismissed and informed the Company on 25.07.2019 that she would not report back
to work.
THE LAW
[41] The role of the Industrial Court under Section 20 of the Industrial Relations Act
1967 is succinctly explained in the case Milan Auto Sdn Bhd v. Wong Seh Yen
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[1995] 4 CLJ 449. His lordship Justice Mohd Azmi bin Kamaruddin FCJ delivering the
judgment of the Federal Court had the occasion to state the following:
[42] In Wong Chee Hong v. Cathay Organization Malaysia Sdn Bhd [1988]
1 CLJ 45; [1988] 1 CLJ (Rep) 298 His Lordship Tun Salleh Abas, LP delivering the
judgment of the Court had this to say:-
[43] In a constructive dismissal case it must be shown by the employee that the
employer:-
(i) By his conduct had significantly breached the very essence or root of the
contract of employment; or
(ii) That the employer no longer intends to be bound by one or more the
essential terms of the contract.
[44] And if the employer demonstrates the above, then the employee is entitled to
treat himself/herself as discharged from further performance of the contract. The
termination of the contract is then for reason of the employer's conduct thereby
allowing the employee to claim constructive dismissal.
[45] In the case of Anwar Abdul Rahim v. Bayer (M) Sdn Bhd [1998] 2 CLJ
197, the Court of Appeal further explained the ingredients of the constructive
dismissal where His Lordship Justice Mahadev Shanker, JCA opined:-
[46] It must be further stated here that the Claimant's case being one of constructive
dismissal, the Claimant must give sufficient notice to his employer of his complaints
that the conduct of the employer was such that the employer was guilty of a breach
going to the root of the contract or whether the employer has evinced an intention no
longer to be bound by the contract as stated in the case of Anwar Abdul Rahim
(supra). The sufficient notice is to enable the Company to remedy the defect if any.
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[47] In the case of Sahabudin U Noor Muhammad & Yang Lain v. Westports
Malaysia Sdn Bhd/Kelang Multi Terminal Sdn Bhd [2014] 4 ILR 80 (Award
No. 943 of 2014) the Industrial Court held:-
(a) That the company, by its conduct, had breached one or more of
the terms of the employment contract;
(b) That the terms which had been breached goes to the foundation
of the contract;
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[50] If any of the above conditions are not established, then the Claimant’s claim
must, in law, fail.
[51] Once the prerequisites for constructive dismissal have been established by the
Claimant in a reference to a dismissal under Section 20 of the 1967 Act, the Court
moves into the second limb of inquiry to determine whether the Company had just
cause or excuse for the dismissal. Here the burden shifts upon the employer to do so.
(See Pelangi Enterprises Sdn Bhd v Oh Swee Choo & Anor [2004] 6 CLJ 157).
[52] Having taken cognizance of the law as it is set out above, this Court will now
move to the facts of this case for its determination. In doing so, this Court will now
move to the conduct of the Claimant, Company and the series of events that had led
the Claimant to now treat herself as constructively dismissed.
[53] The Claimant treated herself as constructively dismissed by the Company vide
the notice of constructive dismissal dated 24.07.2019.
[54] At the outset, this Court will refer to the case of Sanbos (Malaysia) Sdn Bhd
v. Gan Soon Huat [2021] 6 CLJ 700;[2021] 3 ILR 11 wherein the Court of
Appeal explained that in determining a claim of constructive dismissal, the Industrial
Court need to only consider the reasons stated in the letter of resignation and/or
constructive dismissal and any reasons not stated in the letter are irrelevant as
follows:-
[55] Based on the Claimant’s notice of constructive dismissal dated 24.07.2019, the
reasons/grounds stated by the Claimant in treating herself as constructive dismissed
by the Company can be summarized as follows:-
(i) 1st Ground – The Company’s failure to allow the Claimant to enjoy the
flexibility to work from home (WFH) and that the Claimant is not obliged
to attend all meetings which was invited to and non-attendance of the
meetings that are not relevant to her role not be factored into her KPI
performance and behaviour ratings.
(ii) 2nd Ground – The Company’s failure to grant the Claimant a fair
appraisal, failure to give the Claimant a clear description of her
performance and behavior shortcomings and failure to revise the
Claimant’s performance rating from “Needs Improvement” to “Well
Done” or “Outstanding” for FY2018.
(iii) 3rd Ground – The Company’s failure to reinstate the Claimant to perform
the leadership and supervisory role of a Level 20 employee and failure
to cease assigning tasks suited for a Level 18 employee.
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[56] I will also be cautious in adopting a wide interpretation of what conduct by the
employer that would constitute constructive dismissal wherein the Court of Appeal in
the case of Southern Investment Bank Bhd/Southern Bank & Anor v. Yap Fat
& Anor [2017] 3 ILR 433; [2017] MLJU 279, decided as follows:-
(i) 1st Ground – The Company’s failure to allow the Claimant to enjoy the flexibility
to work from home (WFH) and that the Claimant is not obliged to attend all meetings
which was invited to and non-attendance of the meetings that are not relevant to her
role not be factored into her KPI performance and behaviour ratings.
[57] This Court finds that the Claimant had relied upon the 1st limb of the ground
merely based on what was allegedly told by COW-2 to her while handing over the
Bonus Payout Letter on 19.04.2019 but there was no documentary proof whatsoever
was produced by the Claimant to substantiate her contention. In fact, she did not raise
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the issue of she will not be allowed to WFH in her email dated 23.04.2019 in response
to the Company’s Bonus Payout Letter.
[58] Furthermore, it is apparent from the evidence tendered before this court that
the Claimant had never been banned from applying for WFH and COW-2 had
confirmed that he did not inform the Claimant that she was not entitled to WFH but
merely that she had to comply in accordance with the WFH policy.
[59] It is also obvious to this Court that the WFH flexibility was not a contractual
entitlement of the Claimant. The Claimant had confirmed during cross-examination
that her employment contract is silent as to WFH. For ease of reference, the Claimant’s
evidence in this regard is reproduced as follows:-
[60] The Claimant in fact went on to confirm that based on the Company’s WFH
policy, the WFH flexibility was discretionary to the Company when she admitted during
her cross-examination as follows:-
[61] This Court finds that based on the Claimant’s admissions alone, it is patently
clear that the WFH flexibility was a discretionary privilege bestowed by the Company
and not a contractual entitlement.
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[62] It is also to be noted according to the Company’s WFH policy which applied to
all Axiata employees, only SLT and SLT-1 were authorised to approve WFH requests
and the Claimant had duly confirmed this during her cross-examination. It was further
admitted by the Claimant that Mr. Saran was neither SLT or SLT-1 and therefore,
COW-2 who was a SLT-1, was rightfully authorized to approve the Claimant’s WFH
requests.
[63] COW-2 had explained before this Court that although Mr. Saran had mistakenly
been approving WFH requests prior to 09.04.2019, Mr. Saran had informed the team
(which included the Claimant) to direct their WFH requests to the right person after
learning from the Human Resource Department that he was not authorized to approve
the Claimant’s WFH request.
[64] While the Claimant had failed to adduce any cogent evidence to prove her
contention above, the Company had led documentary evidence in trial which clearly
showed that the Claimant was merely informed by Mr. Saran as to whom her WFH
applications should have been directed to.
[65] In the circumstances, the only conclusion to be made is that the Claimant was
never victimized or singled out from applying for the WFH flexibility and that the same
policy, in particular the authorised approvers, applied to everyone in the team.
[66] Under the 1st Ground, the Claimant also contends that she was prevented from
performing her role if she was required to attend meetings which were not within her
scope of work and non-attendance of the meetings that are not relevant to her role
not be factored into her KPI performance and behaviour ratings.
[67] The Court finds that the requirement for the Claimant to attend the meetings
she had been invited to was part and parcel of her duties as Contract Management
Lead. According to the Claimant’s job description, one of the “Purpose of Role” of the
Contract Management Lead position was to “assist the strategic sourcing team during
all phases of sourcing and in particular provides expertise during contract
negotiations”. The Claimant also confirmed that her duties and responsibilities as
Contract Management Lead included the following:-
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(i) Partner with legal to ensure that all templates are kept current with
regard to legal developments and legislative changes;
(ii) Work with OpCo legal to ensure that all OpCo contracts of adherence
and group master agreements are aligned; and
(iii) Support sourcing managers during sourcing activity and in particular
during RFx development and negotiations.
[68] The Claimant however contended that her role as Contract Management Lead
was re-designed following the change in her reporting line from her former superior,
Mr. Peter Chen to COW-2 which took effect on 01.08.2017. According to the re-
designed role, the Claimant’s duties and responsibilities were as follows:-
[69] During the Claimant’s cross-examination, the Claimant was brought through
both job descriptions to compare her role before and after the “redesignation”, and
she eventually admitted to the following:-
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work remain the same. The substance. Because, if not you would
have walked out on constructive dismissal already, right? I’m
saying the substance of your work role remain the same.
A : Substance, yes.
…
Q : Ok, I’m suggesting to you that the requirement for you to attend
meetings, because I’ve highlighted to you all these clauses there,
the requirement for you to attend meetings was necessary for the
fulfilment of your redesigned role as contract manager lead. It
was necessary.
A : It depends.
Q : So, your answer it depends. Now, I suggest to you that in fact,
the requirement for you to attend meetings was already part of
your duties as contract manager lead, it was already part of your
contract even from the start, to attend meetings.
A : Depending on what meetings.
…
Q : No, ok, so, you’re making qualification. You’re saying yes, I have
to attend meetings but depending. It is not a meeting to discuss
the political activities of the country and so on, correct? It has to
be work related, am I correct?
A : It has to be relevant, yes, to the job function, yes.
Q : But you agree you had to attend meetings?
A : Yes, I do have to attend meetings.
Q : Ok. So, I suggest to you, Margaret, that the requirement for you
to attend meetings was not a fundamental breach of your
employment contract. For them to ask you to come to meetings
was not a fundamental breach of your employment contract. The
fact that the Company asked you to attend meetings is not a
fundamental breach of your contract. Agree or disagree? By
asking–
A : It is not a fundamental breach.”
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[70] In furtherance to the above, COW-2 had explained during cross examination
the necessity for the Claimant to attend meetings that she was invited to, including
meetings on technical matters as follows:-
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[72] COW-2 explained further during his re-examination as to the necessity for the
Claimant to attend meetings which she had been invited to as follows:-
“Q : And you were referred to all these paragraphs, and the questions
that were put to you were, “Do you agree that the Company did
not agree to these resolutions proposed by the Claimant?” And
you said, “Yes, the Company did not agree.”
Now, can you take us through each, because the Claimant’s
counsel took you through one by one. Can you tell us for each
point why is it that the Company had not accepted the Claimant’s
proposition? So, starting with point No.1.
A : The Company encouraged flexibility in our work. However,
working from home need approval from the SLT or SLT minus 1.
And, same, referring to the resolution No.1 as well, since we are
part of the organisation who deal with the technical thing on a
daily basis, if you are invited, that mean there is a need, then
everybody need to attend the meeting.”
[73] Based on the evidence tendered by the Claimant and COW-2 it is apparent to
the Court that the requirement for the Claimant to attend meetings that she had been
invited to was essential to the performance of her role as Contract Management Lead
which included preparing contract templates, negotiating/drafting contracts with
suppliers and obtaining final signature of the contracts. Hence, it is only proper for the
Company to take into consideration the Claimant’s non-attendance of such meetings
as relevant factor into her KPI performance and/or behaviour ratings. Furthermore,
the Claimant had also admitted that the requirement to attend meetings was not a
fundamental breach of her employment contract.
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(ii) 2nd Ground – Failure to grant the Claimant a fair appraisal, failure to give the
her a clear description of her performance and behavior shortcomings and
failure to revise the Claimant’s performance rating from “Needs Improvement”
to “Well Done” or “Outstanding” for FY2018.
[74] Based on the evidence tendered by the Claimant and the submissions, this
Court can safely conclude that the Claimant under this ground disputes that she had
been rated unfairly in FY2018 and demanded that her performance rating be revised
from “Needs Improvement” to “Well Done” or “Outstanding”.
[75] The Claimant had submitted in length with regard to this ground, namely the
Claimant was rated “Well done” by her superior Mr. Saran (whom the Claimant
reported to only with effect from May 2018) and that the subsequent rating of “Needs
Improvement” is unfair.
[76] At this juncture, this Court will refer to the Bonus Payment Letter (page 32 of
CLB-1) wherein the Claimant was informed that her overall performance has been
established as “Needs Improvement” (out of 3 categories – “Needs Improvement”,
‘Well Done’ and ‘Outstanding’), among others, the Company had expressly stated as
follows:-
In arriving at your Performance Profile for the year, you had performance
`conversations with your manager/myself to review your 2018 KPIs and
assessment of behaviours. The outcomes form the basis of your overall
performance, which was then evaluated and mapped into a People Review
Framework (taking into considerations your sustained performance and
potential) by Heads of Department and for the higher levels by the Senior
Leadership Team. A calibration exercise was conducted to set standards
and to ensure consistency across the company. This time though, under
the Ignite philosophy, with very few exceptions the functional heads/SLT
member will have the final say. The calibration exercise is primarily used
for discussions and guidance to ensure some consistency across the
company but not to force fit to any ‘Bell Curve” as before.
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[77] The fact that the Company’s performance appraisal process included a
calibration stage by the Senior Leadership Team (SLT) together with the Heads of
Department was as stated in the aforesaid letter was undisputed by the Claimant.
[79] As stated in the said Bonus Payout Letter, the performance rating given after
calibration by the SLT together with the Head of Department is final, i.e. they have
the final say.
[80] Based on the Claimant’s evidence before this Court, at all material time she was
fully aware of the calibration conducted by the SLT and the Heads of Department as
it had been part of the Company’s performance appraisal process which the Claimant
had been subject to even before FY2018. As such, the Claimant may not now dispute
the calibration conducted by the SLT and the Heads of Department
[81] Even thought it was expressly stated in the Bonus Payout Letter that the SLT
and Heads of Department say is final, It was also evident before this Court that the
Claimant had raised her grievance with regard to this issue of she being rated as
“Needs Improvement” at the calibration level and the Company had duly addressed
her grievance and finally maintained their stand of the rating of “Needs Improvement”.
As pleaded by the Claimant, on 23.04.2019, she relay her grievance relating to the
issue of being rated “Needs Improvement”, on 29.04.2019 COW-4 met with the
Claimant to discuss her grievance, after that COW-4 delegated the grievance to Ku
Farihan Ku Jaafar and then to Linden. Linden met the Claimant on 10.05.2019 for a
discussion and subsequently a meeting was arranged with APC Management on
29.05.2019. Finally, Linden had duly informed the Claimant, vide email dated
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07.06.2019 among others, that the Claimant’s 2018 EPP rating of ‘Need Improvement’
was maintained.
[82] Hence, the Company had duly considered the Claimant’s grievance and upon
being given all the avenues available, the Company had maintained its stand.
[83] Even though the Claimant’s personal views of her performance for FY2018
differs from the Company’s final rating of “Needs Improvement”, it is the Company’s
assessment of the Claimant’s performance that should take precedence over the
Claimant’s based on the principle that an employer is the best judge of an employee’s
performance.
[84] In the case of KDE Recreation Bhd v. Glen Fernandez [1998] 2 ILR 733
wherein the learned Industrial Chairman held, inter alia, as follows:-
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“[70] In the events described above this Court cannot help but
to observe that the Company had not conducted itself in
anyway adverse to how a reasonable employer would
have done when faced with similar circumstances.
Surely, Performance Reviews’ of its employees fall within
the clear and unambiguous ambit of its managerial
prerogative, where this Court is on all fours with the
Company when it states that it was neither necessary nor
desirable for this Court to conduct a critical examination
of the Company’s assessment; absent clear and cogent
evidence of mala fides. In the circumstances of this case,
the Claimant has been unable to show any element of
mala fides; and so be it the finding of this Court.”
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[86] This principle was upheld in Abdul Malek Mohamed v. MISC Berhad
[2020] 2 LNS 0840 wherein it was held, inter alia, as follows:-
“[60] It is trite that the employer is the best person and is well
within its prerogative to assess the performance of the
claimant and other employees of the company. By mere
assessing, the bank cannot be said to have breached the
claimant's contract of employment which goes to the root
of the contract. It is similarly irrelevant for the claimant
to claim that the bank had purportedly applied the new
mechanism approved in 2019 retrospectively to
performance year 2018 and that the new mechanism
should be applied for the year 2019 onwards.
…
[62] This court is not in the business of interfering in an
employer's assessment of an employee. Having said so,
dissatisfaction of an employer's assessment certainly is
not a ground to claim constructive dismissal. In the case
of Hewlett Packard (M) Sdn Bhd v. Thangasamy Brown
Gnanayutham [2000] 1 ILR 198 (Award No. 52 of 2000),
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[88] The Court took a similar stance in Hamdan Rasid Hj A Manan v. Telekom
Malaysia Berhad [2019] 1 ILR 325 wherein the learned Chairman held, inter alia,
as follows:-
[89] The Company also refers to Wasudevan Shridathan v. The New Straits
Times Press (Malaysia) Berhad [2018] 2 LNS 1872, wherein the Industrial Court
opined, inter alia, as follows:-
“[69] … The witnesses for both sides agreed that the HOD has
the final say on the review. I am of the view that even
with him consulting with the immediate superior and
appraise, the final say is still with the HOD. The Company
then had wanted to put him on a performance-coaching
list to monitor his performance for 2014 with the hope
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[90] Bearing in mind the authorities above, the Claimant eventually agreed under
cross-examination that the final decision in respect of her performance rating was a
managerial prerogative and further admitted as follows:-
[91] On the issue of whether the Claimant’s appraisal was conducted in a bona fide
manner, based on the evidence tendered before this Court by the Claimant and the
witnesses for the Company, it is apparent to the Court that the “Needs Improvement”
rating she had received for FY2018 post-calibration by SLT and the Heads of
Department was justified. COW-2 had clearly explained the reasons as to why the
Claimant had received a rating of “Needs Improvement” post-calibration as follows:-
“Q10. : What was the justification for the Claimant’s “Needs Improvement”
rating?
The decision of the APC management was based on the following
considerations:
The negative feedback from the CC/APC team;
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[93] COW-2 had also concurred that the comments/feedback collated from the
Claimant’s former colleagues (page 80 of COB-1) which contributed to her “Needs
Improvement” rating was prepared by Mr. Saran (who was not called as a witness due
to his passing) and that there was no documentary evidence to support the said
comments/feedback.
[94] Despite there being no documentary evidence, this Court refers to the evidence
of COW-3 and COW-6 pertaining to their observations of the Claimant’s work
performance and behaviour at work. COW-3 and COW-6 who were both former
colleagues of the Claimant and who have since left the Company, had come forward
and attended the hearing to confirm that they had indeed provided their respective
feedback of the Claimant to Mr. Saran verbally (page 80 of COB-1). With respect, the
Company refers to the evidence-in-chief of both COW-3 and COW-6 pertaining to their
observations of the Claimant’s work performance and behaviour at work.
[95] As regards the Claimant’s attendance records, COW-2 had given evidence from
the Company’s records that the Claimant had claimed to be on medical leave for
eighteen (18) days in 2018 but only applied for ten (10) days, and had been absent
from work without leave for four (4) days. Similarly, in 2019, the Claimant had claimed
to be on medical leave for eight (8) days but only applied for five (5) days only.
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[96] Furthermore, when the Claimant was referred to the Company’s records of her
attendance for the years 2018 and 2019, she did not dispute the above and further
confirmed that the Company did not take any disciplinary actions against her for her
failure to apply for annual leave and medical leave. Even though there was no
disciplinary action taken against the Claimant, nothing stops the Company from relying
on these issues during the calibration in deciding the rating of the Claimant for 2018
EPP.
[97] Although the Claimant denied having been given any guidance and/or advice
by COW-2 and Mr. Saran throughout FY2018, COW-2 had testified that verbal
counselling had been given to the Claimant to improve her behaviour and work ethics.
[98] COW-2 had also testified that the Claimant’s shortcomings/areas for
improvement and a Performance Improvement Plan were explained to her, as
follows:-
Q : COB-1, Yang Arif. Right? Because… Right. So, I just want you to
have this in the backdrop and answer this question. My learned
friend had put a series of questions to you in respect of lack of
evidence. Because you said, oh, you did not put it in writing to
her, you did not put it in writing to her. And you did say, yes, I
did not, I did not, I did not. You didn’t even say I don’t know. I
did not. So, now, if you look at page 87, can you look at what you
have said here? After No.4.
A : Yes.
Q : Could you read out to the Court?
A : “While she was defensive in my discussion, I have clearly
explained with examples of areas of improvement and how we
can help via PIP”.
Q : So, does this confirm what you said earlier, that you had
discussions with her?
A : Yes.”
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[99] In fact in the email dated 24.07.2019 from Linden to the Claimant (pages 1 and
2 of COB-2) the Company had expressly stated that despite the fact that the Claimant
was holding a senior position, COW-2 had given you feedback on various issues
pertaining to your duties and responsibilities e.g., attending business meeting to
support CC colleagues, driving contract and to-end.
[100] Based on the all the foregoing, it is apparent to the Court that the Company
had not at any material time breach any fundamental term of the employment contract
and that it had at all material times acted and exercised its discretions, particularly in
respect of the performance appraisal process, in a bona fide manner.
(iii) 3rd Ground – Failure to reinstate the Claimant to perform the leadership and
supervisory role of a Level 20 employee and Failure to cease assigning tasks
suited for a Level 18 employee.
(iv) 4th Ground – Failure to reinstate the Claimant’s supervisory function, managing
and leading high value, complex contracts and participating in Group wide
special projects.
[101] These grounds relate to the Company allegedly assigning tasks which were
either beneath her level, specifically having to take on a more hands-on management
of contracts including “administrative and clerical task” or failing to assign her the
leadership and supervisory role of a Level 20 employee.
[102] On these grounds, it is apparent to the Court that the Claimant’s job
description under the “redesigned” she was required to have a hands-on management
of contracts in order to perform her duties such as preparing contract templates,
negotiating/drafting contracts with suppliers and obtaining final signature of the
contracts.
[103] Furthermore, the Claimant had admitted under cross-examination that her
employment contract did not provide that her role as Contract Management Lead was
to perform supervisory functions only, or that her role was only limited to projects of
a certain value or more.
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[104] This Court also agrees with the Company that there was no evidence
whatsoever to prove that she was not able to perform the tasks of a Level 18 role or
“administrative and clerical tasks”, it is pertinent to note that the Claimant had also
stated as follows under cross-examination:-
“Q : Agreed. So, can I please refer to the terms and conditions of your
employment? Can I, Yang Arif, go back to page 4 of COB1? In
particular, page 4, Clause 4 under the heading “Business
requirement”.
A : Clause 6.
Q : Sorry, 6. Page 4, Clause 6. Sorry, I have to amend 73, there is a
typo there. So, do you agree that Clause 6 especially states as
follows, “Business requirement. In order to ensure that our
continued progress meets our overall business objectives, we
may need to re-allocate available resources from time to time.
Consequently, you acknowledged and accept that we may need
to vary your designation and/or your work responsibilities from
time to time as may be necessary due to the nature of your work”.
Agree it’s stated there? In the contract.
A : Agree, it’s stated here.
Q : Stated. 72A, Yang Arif. Can I ask you this question? Did you
object to this clause when you signed it?
A : No.
A : No. So, do you also agree that Clause 6 states that if we decide
on any of the above, you must comply with our instructions? It’s
stated here, right
A : Yes.”
[105] Upon being cross examined further, the Claimant admitted that the Company
did indeed have the managerial prerogative to assign her additional tasks, and further
stated as follows: -
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[106] The Court also finds that the Claimant’s propensity to dismiss work as
“beneath” her and her hands-off approach were not new to the Company. The
evidence before this Court show that the Claimant had been warned of similar issues
in the year 2017. The Claimant testified as follows during cross-examination:-
“Q : They changed your reporting line because you had an issue with
Peter vis-à-vis your rating for the financial year 2016, correct?
A : That was one of the grounds, yes.
Q : Ok, yes, it was one of the ground. Alright, take down what she
said, yes. Yes, it was one of the grounds. Can I now, Yang Arif,
Question 79, can I now refer to page 17 of COB-1? Do you agree
that you received this email on 12.01.2017 from Peter?
A : Page?
Q : 17.
A : 17?
…
Q : So, you received this email, correct, 79. Now, do you agree, you
just look at this email, I know you have the document with you
but look at this email. I am just going to extract some of the
pertinent points here. Do you agree that some of the comments
he had provided you in respect of your 2016 appraisal included
the following? No. 1, I am taking it from the email, “Reluctance
to take on crucial tasks which are deemed to be within your
capability and competence. Repeated claims that you are unable
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[107] It is also apparent to the Court that the Claimant’s true motivations were not
the Company’s best interest and needs, but her personal career aspirations and
ambitions and this would best explain her attitude and hands-off approach at work.
The Claimant’s evidence in this regard are as follows:-
[108] In fact, as early as in 2017, the Claimant’s superior at the material time, Mr.
Peter Chen had advised the that, “… as employees, we are contracted first to serve
the needs of the business and develop ourselves in the course of doing so. The
company does not exist to fulfil our career aspirations.”
[109] In the circumstances, it is apparent to this Court that the tasks assigned to
the Claimant, including the requirement for her to have a more hands-on approach,
were well within her scope of work as Contract Management Lead and that the
requirement to perform any administrative and clerical tasks were within the
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(v) 5th Ground – Failure to cease singling the Claimant out, bypassing her role and
excluding her from performing her job functions.
[110] As regards this ground, there is no cogent evidence adduced by the Claimant
to prove that she had purportedly been ousted by the APC and CC team. In this regard,
the COW-2’s response to the allegations that the Claimant had been ousted from her
job function was as follows:-
“This is no true, Margaret has been informed that she is one of the
pillar for CC team and she should be able to approach the team and
support them in her role as a contract manager…”
[111] Having denied the said allegations, COW-2 had also explained that the
purported reduction in the Claimant’s work, duties and responsibilities was attributable
to herself and her lack of initiative to be involved in client meetings/discussions and
frequent absences.
[112] In fact, COW-2’s evidence is consistent with the behaviour and work ethics
observed by COW-3 and COW-6, and further corroborated by the Claimant’s own
evidence wherein she had repeatedly demanded for the Company to “reinstate her
to perform the leadership and supervisory role of a Level 20 employee” and
“to reinstate the Claimant’s supervisory function, managing and leading
high value, complex contracts and participating in Group wide special
projects”.
[113] Based on the totally of evidence tendered before this Court, the Claimant had
failed to prove that the Company had intention to oust the Claimant from performing
her job functions. In fact, it was evident that it was the Claimant who refused work
which she deemed to be beneath her job grade, such as having to take on a more
hands-on management of contracts including “administrative and clerical task”.
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(vi) 6th Ground – Failure to waive the Claimant’s Performance and Behaviour ratings
for the Financial Year 2019 (“FY2019”) KPIs from January 2019 to the date her
duties and responsibilities are fully restored to normal.
[114] This ground raised by the Claimant was that the Company had purportedly
failed to waive the Claimant’s Performance and Behaviour ratings for FY2019 KPIs.
[115] With regard to this ground it is pertinent to note that the Company had taken
steps to resolve the Claimant’s concerns regarding her FY2019 KPIs. The Claimant had
confirmed that a meeting on 08.07.2019 was held with her, Mr. Saran, COW-2 to
discuss her KPIs for FY2019.
[116] The Claimant also confirmed that during the said meeting, the Company had
presented her with the following options to allay her concerns:-
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[117] Although COW-2 had given evidence that the Claimant had opted for Option
2 i.e. to evaluate and close the first half of 2019 and move on with the new KPIs for
the second half of FY2019, the Claimant denied agreeing to any of the options
presented to her as they purportedly did not allay her concerns. The Court also finds
that COW-2’s evidence that the Claimant had opted to Option 2 is corroborated
wherein in the email dated 24.07.2019 to the Claimant, Linden had expressly stated
that:- [please see page 2 of COB-2]
“Further to the above and in relation to your claim that the KPIs for
the Financial Year 2019 are “unachievable and unrealistic”, we wish
to place on record that during a discussion on 08.07.2019 between
you and your line manager Saravanan Moorthy, Ramakrishnan
Potharaju, Head of APC and Linden Leong, HR, you had on your own
volition elected to proceed with the option presented to you by the
Company that your performance for the first half of Financial Year
2019 will be evaluated and closed in order to move forward with the
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new KPIs for the second half of the year 2019. As such, your dispute
in respect of your KPIs for the Financial Year 2019 is merely an
afterthought”
[118] Hence, it is apparent that the Claimant did indeed agree to Option 2,
otherwise it would not make have made sense for the Company to state the above in
its email dated 24.07.2019 and for there to be another meeting scheduled on
12.07.2019 to discuss the list of projects including performance evaluation, which the
Claimant had admitted.
[119] Before the meeting on 12.07.2019 took place however, the Claimant issued
the Notice of Grievance on 09.07.2019.
[120] The only conclusion to be made by this Court with regard to this grounds is
that the Claimant’s FY2019 KPIs had yet to be finalized and the Claimant had jumped
the gun and walked out on constructive dismissal prematurely without even finalizing
her FY2019 KPIs.
[121] Based on the following evidence tendered before this Court, it is the finding
of this Court that the Company did not have any intention not to bound by the contract
of employment it has with the Claimant:-
(i) The Claimant’s grievance with her former superior, Mr. Peter Chen
pertaining to the behavior assessment in her performance appraisal for
the year 2016, the Company took measures to resolve her grievance and
although it had no obligations, the Claimant’s reporting line was changed
from Mr. Peter Chen to COW-2.
(ii) The Claimant had admitted under cross-examination that she had
expressed her gratitude to the Company as follows:-
(iii) The Claimant also confirmed that the Company did not take any
disciplinary action against the Claimant for her failure to apply for annual
leave and medical leave in the years 2018 and 2019 which were clearly
act of misconduct.
(iv) Following the Claimant’s FY2018 performance appraisal where the
Claimant had received a “Needs Improvement” rating, the Claimant had
agreed during cross-examination that the Company did not place her on
a performance improvement plan and further admitted that she was in
fact paid a bonus.
(v) The Company had also taken steps to resolve the Claimant’s grievance
in respect of her FY2018 rating, including meetings and discussions on
various occasions with Mr. Saran, Linden and COW-2 to explain the basis
for her “Needs Improvement” rating.
(vi) As the Claimant was dissatisfied with the outcome of the discussions on
29.05.2019, it was escalated to the Senior Management for their
deliberation. Upon due consideration of all the relevant information and
feedback however, COW-4 confirmed that the Senior Management had
decided to maintain the Claimant’s rating which was communicated to
the Claimant vide email dated 07.06.2019.
(vii) The Company had also gone to great lengths to resolve the Claimant’s
grievance in respect of her FY2019 KPIs, including offering her options
which the Claimant initially accepted but denied before this Court.
[122] This Court also considered the fact that following the Company’s rebuttal (the
Company’s email dated 24.07.2019) of her Notice of Grievance, it had repeatedly
requested for the Claimant to report back to work. With this regard, in the case of
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Tan Siew Bueh v. Measat Broadcast Network Systems Sdn Bhd [2019] 2 LNS
0118 the Court opined, inter alia, as follows: -
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[123] Having analysed all the evidence in this Court, this Court is unable to find
anything that can show that the Company had conducted itself in a manner that
amounted to a severe breach of both express and implied terms of the Claimant's
employment contract. In this whole episode, this Court having analysed all the facts
and evidence only found facts and evidence that had shown that the Company had
attempted to ensure that the Claimant continued in the service of the Company. There
is no evidence before this Court that the Company had breached any of the essential
or fundamental terms of employment of the Claimant or had evinced an intention no
longer to be bound by the essential terms of the Claimant's contract of employment
with the Company. This Court cannot allow the Claimant to seize any minor
shortcomings or failings of the Company (if there is) and turn it into or interpret it as
though they form the breach of essential or fundamental terms of the contract of
employment of the Claimant with the Company.
[124] This Court is mindful that the circumstances giving rise to a constructive
dismissal depends on the facts and circumstances of each case. However, this Court
would also ask questions regarding the conduct of the Company and whether such
conduct of the Company was a deliberate design to drive the employee out of the
Company by making the employee's continued presence in the Company unbearable
or intolerable. In this regard, this court finds the judgment of the Court of Appeal in
the case of Quah Swee Khoon v. Sime Darby Bhd [2001] 1 CLJ 9 instructive
wherein the Court of Appeal opined as follows:-
A reading of the pleaded case for the parties resolved the issue
that fell for adjudication before the Industrial Court into what
the profession has come to call as a ‘constructive dismissal’.
There is no magic in the phrase. It simply means this.
[125] The complete analysis of the facts and evidence in this case does not show
that the Company had engaged in any acts or conducts that is designed to make the
Claimant's working experience in the Company unbearable that had the likely result
of driving the Claimant out of employment from the Company. This Court finds that
the Claimant's allegations of that the Company had breached the express and/or
implied terms of her employment contract with the Company are unproven. Contrary
to the Claimant's allegation, this Court is of the view that the Company had acted fairly
without engaging in any acts that is or can be deemed as breaches of the fundamental
or essential terms of the contract of employment of the Claimant with the Company.
CONCLUSION
[126] Pursuant to Section 30(5) of the 1967 Act and guided by the principles of
equity, good conscience and substantial merits of the case without regard to
technicalities and legal form and after having considered the totality of the facts of the
case, all the evidence adduced in this Court and by reasons of the established
principles of Industrial Relations and disputes as stated above, this Court finds that
the Claimant had failed to prove to the satisfaction of this Court on the balance of
probabilities that she was dismissed from her employment by the Company. Since the
Court finds that the Claimant has failed to prove that she had been constructively
dismissed by the Company, thus the issue of whether the dismissal was done with or
without just cause or excuse does not arise as there was is no dismissal to begin with
in the first place.
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-signed-
(ESWARY MAREE)
CHAIRMAN
INDUSTRIAL COURT OF MALAYSIA
KUALA LUMPUR
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