Worker Wins Rm1 2 Million Compensation For Unfair Dismissal

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The Industrial Court says Norzaifizy Khalid Nordin’s employer did not follow the last-in, first-out principle in carrying out the retrenchment exercise.PETALING JAYA: The former employee of a petroleum company was awarded compensation of close to RM1.2 million after the Industrial Court ruled that he had been unfairly dismissed by the Sarawak-based firm
Norzaifizy Khalid Nordin, a lead facilities specialist at Murphy Sarawak Oil Co Ltd, was issued a retrenchment notice on Aug 15, 2015
The company said it had been suffering a severe decline in profits and a reduction in business due to a significant drop in global oil prices
Murphy vice-president Harry Howard said the company had taken several cost-cutting measures which had proven ineffective. He added that the company had no choice but to release Norzaifizy from employment with two months’ salary in lieu of notice
Murphy paid Norzaifizy RM266,766.03 in retrenchment benefits. However, Norzaifizy filed a claim in court seeking reinstatement
Norzaifizy, represented by S Muhendaran and Chong Wan Loo, also wrote to the company seeking clarification but it maintained its stand
Norzaifizy argued that his retrenchment was a breach of the principles of natural justice and an act of victimisation
Industrial Court chairman Yong Soon Ching said in a 32-page award that the dismissal was without just cause or excuse
He said it was for the company to discharge the onus of justifying the departure from the last-in, first-out principle in retrenching employees by citing substantive and reliable evidence
“The company abandoned the principle and instead adopted its own criteria,” he added
Yong also said Norzaifizy had committed no misconduct, neither had he performed below expectations to warrant the dismissal
He said he was satisfied that there had been a decline in the company’s profits but that this was not enough to render it unable to continue its operations
He also said employers must take all measures under the Code of Conduct for Industrial Harmony before conducting a retrenchment exercise
“This court is of the opinion that the company has adequately complied with the code, although not entirely,” he added
He said it was not a suitable case for reinstatement but that the rightful remedy would be to award the claimant with compensation
Norzaifizy joined the company on May 1, 2008. His last drawn salary was RM33,537 plus RM1,700 in cost of living allowance
His back wages amounted to RM810,451, while compensation in lieu of reinstatement came to RM387,607, totalling RM1,198,058
However, Yong ordered that only RM931,291.97 be paid to Norzaifizy since the company had already paid RM266,766.03 in retrenchment benefits. - FMT

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