Worker challenges financial hardship claims after the company made major property purchases and luxury expenses
The Industrial Court of Malaysia recently dealt with a case involving an administration executive who was dismissed due to alleged financial hardship and organisational restructuring.
The worker argued that her retrenchment was not genuine and was carried out in bad faith, while the company maintained that it was undergoing tremendous cash flow pressure, requiring cost-cutting measures and manpower rationalisation.
The worker's case centred on challenging the company's stated reasons for retrenchment, arguing that the financial hardship claims were not genuine, given various business activities and expenditures made during the same period.
The company maintained that it had been undergoing cash flow pressure for two and a half years, necessitating restructuring, cost-cutting measures and manpower downsizing to ensure the company could sustain its operations.
The worker commenced employment as an administration executive with effect from 8 November 2011. The company is involved in the oil and gas industry. The worker was dismissed via a termination letter dated 23 September 2019, stating that her last day would be 22 October 2019.
The reasons given by the company in the termination letter stated: "The company has been undergoing tremendous cash flow pressure for the last 2 years. Several initiatives have been...
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