6 ex-hotel chefs fail to challenge sacking during MCO

The Penang High Court said the hotel was in a dire financial situation when it asked its employees to go on unpaid leave or be retrenched during the MCO. (File pic)

PETALING JAYA: The George Town High Court has rejected a bid by six former hotel chefs to challenge the termination of their services during the movement control order (MCO) in 2020.

The chefs – Azlee Abdul Aziz, Adam Asraf Alias, Azizi Awang Mat, Ahmat Aizat Yusuf, Zulhairi Zulkifli and Firdaus Murad – were former employees of the Lone Pine Hotel in Penang.

At the start of the MCO in March 2020, the hotel gave its staff the option of taking a pay cut or be retrenched as it was unable to operate. The six opted to take pay cuts.

When the MCO was extended a month later, the hotel informed its employees that they would need to go on unpaid leave, failing which they would be retrenched.

The six refused and had their employment terminated. They were paid all “contractual payments in relation to the notice and termination benefits”.

Aggrieved by the sackings, they took their case to the Industrial Court, which dismissed their claim for reinstatement, holding their terminations to have been with just cause.

The six filed a judicial review before the High Court, which upheld the tribunal’s ruling.

Justice Anand Ponnudurai said there was no reason to disturb the Industrial Court chairman’s ruling.

“As much as the applicants seem to contend that they felt they were ‘victimised’ for not agreeing to go on unpaid leave, the harsh reality indicates that the respondent (hotel) had no choice (but) to retrench them on the basis of being redundant as a consequence of them refusing to remain in employment on an unpaid basis,” he said.

On the argument that the hotel had failed to produce its audited accounts to show it had financial problems and justify the sackings, Anand said the Industrial Court’s reliance on the testimony of a hotel administration staff and the production of its bank statements in evidence was acceptable.

“The audited accounts may be the best evidence, but it does not mean that other evidence can’t be relied upon.

“There can be no doubt that the hotel’s restaurants were closed since February and all their letters (to employees) from March alluded to the fact they were in a dire financial situation,” he said. - FMT