Malaysian court examines whether employer's actions after misconduct allegations constitute dismissal
20 Jun 2025
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The Industrial Court of Malaysia recently dealt with an employment dispute involving allegations of constructive dismissal, where a worker claimed his employer had fundamentally breached his employment contract through improper transfer and demotion procedures.
The worker argued that his employer had violated essential terms of his employment contract by demoting him from a managerial position to an officer-level role and transferring him to a location hundreds of kilometres away with just 24 hours' notice.
He also claimed that disciplinary proceedings against him were conducted without proper procedures, including holding an inquiry before formal charges were communicated to him and proceeding without key witnesses or evidence.
This case highlights critical issues surrounding workplace harassment investigations, disciplinary procedures, and the balance between management prerogatives and workers' rights.
The worker started employment with the medical services company on 17 May 2021 as vice president/operational manager with a monthly salary of RM6,000.
His employment contract required him to undergo a six-month probationary period during which his performance would be assessed. The employment relationship began deteriorating in September 2021 when serious workplace issues emerged.
On 4 September...
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