Ex-Petronas employee awarded RM1.13m for wrongful dismissal

November 19, 2019 @ theedgemarkets.com
The claimant was dismissed in December 2017 due to an alleged lack of improvement after she was put on a 'Performance Improvement Plan' (PIP) for six months.

If you are a manager or business owner, it is likely that you have experienced this, or will experience this to some degree. Absolutely frustrating, isn’t it?

Dismissing an Employee

The most common reason to dismiss an employee is poor performance. This includes inability to reach the KPIs that were set out, poor attendance or failure to follow instructions. Behavioral problems such forgery, lying, stealing and sexual misconduct at the workplace could also be among other reasons.

Besides performance related issues, there are reasons beyond the employee’s control for their dismissal. For example, when the company is undergoing a restructuring or downsizing phase, certain positions get eliminated.

Illegal Termination From Employment

When the dismissal of an employee happens in a manner that is against the employment law or the employment contract, the employee involved has the right to resort to legal action. The potential consequences that you face as an employer are massive - time, money, resources, reputation, relationships - there are plenty at stake. Depending on the ruling, you may have to provide monetary compensation on top of being charged by the law for punitive damages.

Protect Your Company from Losing 

Ensuring that your management is provided with proper protection and training is key to avoiding such episodes. At times, these things occur due to failure in taking the right actions, often leaving the company exposed. Don’t allow that to happen. Of course, being prepared is not a guarantee that no one will attempt to sue you. Nevertheless, it can certainly mitigate time and costs involved in defending against it.

The need for comprehensive HR policies and clear employment terms cannot be overlooked to protect your organization. To achieve this, your HR and legal team should have sufficient knowledge on employment law as well as industrial relationsto come up with well structured policies and practices.

Another solution would be to opt for consultancy services from experts such as IRLAW2U.my, a human resources and industrial relations management consultancy firm. From providing assitance in writing HR policies to negotiating agreements with unions, this digital platform caters to a wide spectrum of your industrial needs. This team of experts also provide in house training to equip your HR team better.