Court finds there was a genuine redundancy due to the downsizing and reorganisation necessitated by losses suffered from 2017 onwards.
The Court of Appeal has upheld Malaysian Mosaics’s decision in 2018 to terminate the services of more than 20 management employees, including the three appellants, with the aim of improving effectiveness and efficiency.
“The findings of facts of the Industrial Court, which were affirmed by the High Court, in respect of the reasons given by the company for their dismissal do not warrant interference by this court,” he said when dismissing the appeals by Au Lai Chan, Lim Chwee Hoon and Wong Meng Koon. The alleged redundancy in the present case stemmed from a decrease in the company’s profits and a decision to downsize its manufacturing operations by shutting down a plant in Kluang, Johor, which employed 501 workers, more than half of its production workforce.
Lim was an administration executive and her last drawn monthly salary was RM8,105.00 while Wong, whose last post was as general manager, drew a monthly salary of RM22,941.00.
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