Ex-consultant awarded RM221,000 for constructive dismissal

The Industrial Court says there had been a fundamental breach of the employment contract between former company consultant K Theva and his previous employer. (File pic)

KUALA LUMPUR: The Industrial Court has awarded RM221,250 to a former company consultant as he was found to have been constructively dismissed from his employment.

Tribunal chairman D Paramalingam ordered Matrix Power Network Sdn Bhd to pay K Theva Pragash RM30,000 compensation in lieu of reinstatement.

He also ordered backwages amounting to RM191,250 after deducting 15% as Theva worked elsewhere after the dismissal.

In his 39-page award, Paramalingam said sending Theva back to work with his previous employer was inappropriate as there has been a total breakdown of trust between them.

He said the court found that Theva, represented by S Muhendaran and Chong Wan Loo, succeeded in proving that there had been a fundamental breach of the employment contract entitling him to claim constructive dismissal.

The company, he said, also failed to rebut Theva’s contention when shown there was constructive dismissal.

Paramaligam said the court found the company had delayed in remitting the claimant’s EPF and Socso contributions as well as the income tax deductions.

The company also failed to pay his salaries from February 2018 to May 15 that year, he said.

“The court finds that there had been a serious fundamental breach of the claimant’s employment contract when the company delayed in paying the outstanding amount of RM40,152.25 at the time the claimant justifiably issued his notice of constructive dismissal on Aug 20, 2018,” he said.

Paramalingm said the court found that the company had deleted the claimant’s official email account and failed to provide him with a workplace..

“Such an act evinces an intention by the company to refuse the claimant further employment,” he said.

He said the company had also intended to eliminate the claimant’s status as a permanent employee but made a backdated offer of a one-year contract as consultant.

Theva was appointed as consultant for two years from Feb 1, 2016 and was subsequently offered the position of CEO for a subsidiary of the company, MX Energy Services Sdn. - FMT