High Court rules General Manager voluntarily accepted separation arrangement
Penang Port Sdn. Bhd. v. Mahkamah Perusahaan & Anor
KL High Court Judicial Review Application No. WA-25-50-01/2020
This morning, Justice Dato’ Ahmad Kamal bin Md. Shahid ruled that there was no dismissal by Penang Port Sdn Bhd (“PPSB”) when he overturned the decision of the Industrial Court which had held that the General Manager, Corporate & Regulatory Affairs (“the General Manager”) of PPSB was forced to resign via a mutual separation agreement.
At the Industrial Court, the General Manager had claimed that he was forced by PPSB to enter into a mutual separation agreement following a series of events, including his long suspension period and the purported withholding of his salary.
The Industrial Court, via an Industrial Court Award No. 2648 of 2019 had ruled in favour of the General Manager and awarded backwages and compensation in lieu of reinstatement.
PPSB subsequently filed a judicial review application at the High Court to quash the Industrial Court Award, arguing that there was no threat of dismissal, and the mutual separation agreement was voluntarily entered into by the parties with financial considerations.
Moreover, the General Manager’s conduct preceding and following the conclusion of the mutual separation agreement was inconsistent with his claim of forced resignation as he had negotiated the terms of the mutual separation agreement and had never, at any material time objected to the same.
The High Court agreed with PPSB’s submissions and allowed its judicial review application with costs.
The Industrial Court Award can be accessed below.