The Court of Appeal has dismissed an employer’s appeal to reduce the back wages paid to a chief financial officer on probation because he found employment a month after his termination.
A three-member bench chaired by Justice Collin Lawrence Sequerah said the High Court did not err in refusing a judicial review by property developer DK-MY Properties Sdn Bhd which argued that it should only pay a month’s salary of RM24,000 to David Gerard Mok.
“The decision was not irrational or unreasonable to warrant appellate intervention,” said Sequerah, who sat with Justices Faizah Jamaludin and Meor Hashimi Abdul Hamid.
Sequerah said probationers enjoyed similar protection as permanent employees under the Industrial Relations Act 1967 (Act 177).
The Court of Appeal also reiterated that the amount of back wages awarded by the Industrial Court was discretionary in nature, pursuant to the Second Schedule of Act 177.
Under the schedule, the Industrial Court can order employers to pay back wages of up to 12 months to a probationer, and a maximum 24 months for confirmed staff who were unfairly dismissed.
Mok was appointed in December 2019 on a six-month probation period. His employment was terminated in March 2020, effective June 2020, with no reason given.
The Industrial Court ruled that Mok, being a probationer who enjoyed the same rights as a permanent employee, was terminated without any warning or notice regarding alleged poor performance.
The court awarded him four months of back wages amounting to RM96,000.
The employer then sought a judicial review, arguing that the termination was valid under the terms of the appointment letter and that the award was irrational since Mok secured new employment shortly after dismissal.
Lawyers Dinesh Nandrajog and Wong Shu Min appeared for Mok while Wong Huang Wee and Shanne Kong appeared for DK-MY Properties.
