Banks Not Obliged To Pay Employees Festival Aid Industrial Court Rules

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The Industrial Court said a memorandum of agreement dated April 5, 2023 on festival aid has no legal effect as it was not deposited with the court for recognition as required under the Industrial Relations Act 1967. (Facebook pic)
PETALING JAYA: The Industrial Court has ruled in favour of the Malayan Commercial Banks Association (MCBA) in its trade dispute with the National Union of Bank Employees (NUBE) over festival aid for bank employees.
Industrial Court chairman D Paramalingam said a memorandum of agreement (MoA) on festival aid, dated April 5, 2023, was of no legal or binding effect.
He said this was because the MoA had not been deposited with the court for formal recognition, as required by the Industrial Relations Act 1967.
It also does not oblige banks to pay aid for subsequent years.
“As it stands, the MoA for festival aid only provides for a one-off payment for the year 2023 and not for the following years, although parties were at liberty and had the discretion to review any payment of festival aid for the subsequent year post-2023,” he said in an award released earlier this week.
Paramalingam also said he was bound by the stare decisis principle as similar decisions had been made in the past by the High Court, Court of Appeal, and Federal Court.
“Despite knowing full well as to what had transpired at the Industrial Court, High Court, Court of Appeal, and Federal Court in the NUBE v HSBC Bank Malaysia Bhd case, the union yet again attempted another bite at the proverbial cherry to introduce a MoA as an implied term of employment,” he said.
Paramalingam said NUBE was imploring that he depart from an apex court decision in making his award.
“This court will not allow itself to be dragged into the quagmire of judicial rowdyism. It is also pertinent to note that the union’s witness and general secretary, J Solomon, was also the union’s witness in the NUBE v HSBC case.
“He was thus well aware of the decision in the apex court but instead feigned ignorance when cross-examined by counsel for MCBA,” he added.
The dispute over the festival aid followed unsuccessful conciliation efforts by the industrial relations department in February and March last year, leading to the referral of the case on April 16, 2024.
Lawyers N Sivabalah and Reena Embasegaran appeared for MCBA, while Ravi Nekoo and Arvin Kumar Mohan represented the union. - FMT

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