Apex court reinstates compensation to ex-manager terminated via MSS

Apex court reinstates compensation to ex-manager terminated via MSS

The Federal Court allows V Mugunthan's appeal and restores an Industrial Court award in his favour.

Federal-court
The Federal Court overturned a Court of Appeal ruling and ordered B Braun Medical Industries Sdn Bhd to pay V Mugunthan RM143,000 in compensation and RM50,000 in costs for wrongful dismissal.
PUTRAJAYA:
The Federal Court has reinstated an award of RM143,000 in compensation to a former maintenance manager for wrongful dismissal despite his agreement to a mutual separation scheme (MSS) with his employer five years ago.

A three-member bench chaired by Chief Judge of Sabah and Sarawak Abdul Rahman Sebli allowed V Mugunthan’s appeal, saying it had sufficient merit.

The court also ordered his employer, B Braun Medical Industries Sdn Bhd, to pay Mugunthan RM50,000 in costs.

Also on the panel hearing the appeal were Justices Abu Bakar Jais and Abdul Karim Abdul Jalil.

The ruling overturned a decision by the Court of Appeal last November which set aside the Industrial Court’s award on grounds that Mugunthan had voluntarily agreed to the MSS.

The Court of Appeal had held that to succeed, Mugunthan would have to show he was forced to tender his resignation at a meeting on Jan 14, 2019, which he failed to do.

The Industrial Court action arose after Mugunthan – who drew a monthly salary of RM17,938 – filed representations citing unfair dismissal despite receiving RM125,566, or the equivalent of seven months’ wages, under the MSS.

Evidence showed that Mugunthan, who joined the company on June 1, 2015, was told that the MSS agreement had the effect of an ordinary resignation from employment with the company.

The industrial court however found that Mugunthan was duped into taking the MSS.

Lawyers VK Raj and SP Devi represented Mugunthan, while counsel Raymond Low, Adam Thye and Chia Jia Xin acted for the company.

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