Who Is Your Real Employer in Malaysia? Why Naming the Wrong Company Can Defeat an Unfair Dismissal Claim

What happens when an employee works for one company but brings an unfair dismissal claim against another? This article examines Sivanesh v Nityo Infotech and explains why identifying the correct employer matters, how courts assess employment relationships within corporate groups, and why delaying a constructive dismissal claim may defeat it even where unpaid salary amounts to a fundamental contractual breach.

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Can an Employee Be Dismissed for Ignoring Instructions Sent Through WhatsApp?

Can an employee be dismissed for ignoring attendance instructions sent through WhatsApp? This article examines Llewellyn Chiou Chiat Ren v Sarawak Energy Berhad, where the Industrial Court upheld dismissal for prolonged absenteeism and repeated insubordination. It explains digital workplace instructions, medical excuses, attendance records, disciplinary procedures and when refusing a lawful and reasonable instruction may lawfully justify dismissal in Malaysia.

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Can an Employee Be Dismissed for Failing a Workplace Drug Test in Malaysia?

Can an employee be dismissed for failing a workplace drug test in Malaysia? This article examines Mohd Rozaidi v Elektrisola, where the Industrial Court upheld the dismissal of a long-serving employee who tested positive for ketum. It explains workplace testing policies, safety-sensitive roles, repeat testing, disciplinary procedure and when a positive result may amount to serious misconduct lawfully justifying dismissal.

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Can an Employee Be Dismissed for Hiding a Criminal Record in Malaysia?

Can an employee be dismissed for hiding a criminal record in Malaysia? This article examines Dinesh Kumar v Joe Green Precast, where the Industrial Court upheld termination after an employee concealed a theft conviction in his job application. It explains when nondisclosure becomes misconduct, why relevance to the position matters, and how employers should investigate declarations before taking disciplinary action.

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Can a Probationer Be Dismissed for Poor Performance Without Warning in Malaysia?

Can a probationer be dismissed for poor performance in Malaysia? This article examines Tan Cheng Chuon v Kibing Group, where the Industrial Court awarded RM173,400 after finding that poor performance was not proved. It explains why employers should provide clear expectations, contemporaneous appraisals, warnings and a meaningful opportunity to improve before terminating a probationary employee for alleged underperformance at work.

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Are Non-Compete Clauses Enforceable in Malaysian Employment Contracts?

Are non-compete clauses enforceable in Malaysia? Section 28 of the Contracts Act 1950 generally makes post-employment restraints of trade void, even where the restriction appears reasonable. This guide explains the Malaysian position on non-compete clauses, key cases including Polygram Records and Dynacast, and practical ways SMEs can protect confidential information and business interests.

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Can an Employee Secretly Record Workplace Conversations in Malaysia?

Can employees secretly record workplace conversations in Malaysia? This article examines an Industrial Court decision involving a security officer dismissed for using a camera spy pen to photograph colleagues and record management without consent. It explains when covert recording may amount to workplace misconduct, why company policies and context matter, and whether such conduct can justify dismissal under Malaysian employment law.

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Flexible Working Arrangements in Malaysia: Can Employees Request to Work From Home?

Can employees request to work from home in Malaysia? This article explains flexible working arrangements under the Employment Act 1955, including changes to working hours, days and workplace. It covers the application process, employers’ response obligations, reasons for refusal, remote-working policies, performance, confidentiality, workplace safety and whether employees may insist on working remotely.

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Can an Employee Be Dismissed for a Social Media Post in Malaysia?

Can an employee be dismissed for a social media post in Malaysia? This article explains when online conduct may amount to workplace misconduct, including defamatory comments, confidentiality breaches and harassment. It also examines posts made outside working hours, employers’ social media policies, disciplinary procedures, proportionality and an employee’s right to challenge an unfair dismissal before the Industrial Court in Malaysia.

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Profit Guarantees in Share Sale Agreements: What SMEs Can Learn from MARA v Naguib Mohd Nor

In MARA v Naguib Mohd Nor, the Malaysian Court of Appeal overturned the High Court and awarded MARA RM6.6 million under a profit guarantee in a share sale agreement. This article explains the decision and the practical lessons Malaysian SMEs should take when drafting profit guarantees, payment mechanisms, warranties and no-waiver clauses.

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