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Wednesday, June 18, 2025

Employer ignores company's dismissal procedure, faces costly payout - HRD America

Malaysian court awards eight months' salary to wronged sales executive

The Industrial Court of Malaysia recently dealt with a workplace dismissal case that highlighted important considerations surrounding termination procedures and the rights of employees when facing performance-related dismissals.

The worker brought claims against his former employer alleging that his termination was executed without proper justification and in violation of established company policies.

He argued that the performance metrics used to justify his dismissal were misrepresented and that he was denied the opportunity to properly address the concerns raised.

The case raised significant questions about whether employers must strictly adhere to their own documented disciplinary procedures, and what constitutes sufficient evidence of underperformance to justify termination in Malaysia.

Worker’s wrongful dismissal claims

The worker started proceedings against the employer after being dismissed from his sales executive position that he had held for three years.

Court documents showed that the worker was terminated in January 2023 following allegations of failing to meet sales targets and inappropriate conduct towards colleagues.

The employer, a technology distribution company based in Kuala Lumpur, maintained through testimony that the termination was justified due to the worker's failure to meet quarterly sales targets for three consecutive quarters and an incident where he allegedly used abusive...



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