Reference no: EM132733969

Evelyn was hired as an Event Coordinator in Unicorn Hotel with a salary of RM4500. Her job was to market and manage the hotel's ballroom and function halls for events, conferences, and weddings. She was initially put on a 3 months' probation period and upon successful completion of the probation, the hotel confirmed her appointment and increase her salary to RM4700 plus 3% sales commission by a letter dated 1st April 2016. In 2018, due to good performance, her salary was further increased to RM5000 and her entitlement to annual leave was also increased. However, by a letter dated 2nd January 2019, Evelyn was informed of the company's decision to terminate her. The reasons for her termination were stated as redundancy and retrenchment due to financial reason.

Further investigation revealed the following facts:

i. The hotel has engaged and outsourced Evelyn's work to market the hotel's venue to an independent event planner. The hotel argued that this was a purely strategic business decision that would save the hotel a lot of money and resources.

ii. The hotel claimed that they are facing financial difficulties and losses for the past two years. Therefore, since the hotel no longer needs Evelyn's service and would also face difficulties to pay her salary, the best way was to terminate her and the hotel has compensated the termination by paying her one month salary in accordance to the contract of employment.

iii. The general manager of the hotel has met her before and asked her to submit her resignation, but she refused. So, the hotel has no alternative but to terminate her employment

iv. In 2019, only two employees were terminated by the hotel. Evelyn's termination was due to redundancy while another employee was dismissed for misconduct.

• Evelyn on the other hand claimed that her termination was without reason and just cause. She said that there is no way her job as Event Coordinator has become redundant with the hiring of the event planner because all the clients being serviced by the independent event planner were clients that she had brought in and not new ones. Further, matters related to booking fees, rentals and other expenses related to the use of the event halls which previously were handled by Evelyn, are now assigned to the account department as additional task. To make things worse, Evelyn heard that the hotel paid all existing employees their annual bonus a month after the company terminated her employment.

Problem a) Based on the principles relating to retrenchment and redundancy that you learned in class, discuss whether Evelyn's termination is done with just cause and excuse.

Problem b) Assume that Evelyn brought her case to the Industrial Court. On 2nd September 2020, the court found that her termination was done unjustly and without proper cause. Describe and calculate the compensation that can be awarded to her by the Industrial Court. You may make the necessary assumptions in order to justify your answer.