Reference no: EM132710422

Question: Ravinder Singh was employed as Sales Manager in Komo Auto Parts Sdn Bhd for the past seven years. Recently the company alleged that Ravinder has misappropriated some company funds and after a quick investigation, the management found Ravinder guilty. As punishment, the company transfered him to another branch and redesignated him as Showroom Manager. He was given similar job description and informed that his salary, grade and other terms and benefits would remain the same. Ravinder reported duty at his new workplace on the 24th August 2020 and worked in this new position until 25th September 2020. In his new position, Ravinder found that there was a reduction of his responsibilities. He was no longer responsible for any division of the company and removed from the executive management committee of the company. The transfer also means he can no longer claim any sales commission that he previously enjoyed. By a letter dated 28th September 2020, Ravinder informed the company that he considered himself constructively dismissed on the basis that the allegations made against him was never properly proven. Thus, the subsequent transfer and change in benefits amounted to a demotion and is a breach of the contract of employment.

Based on the scenario given above and accepted labour laws principles, discuss whether Ravinder has indeed been constructively dismissed.