Reference no: EM133331650
Employment Act 1955 Malaysia Labour law.
Vimalan commenced work as Network Support Executive with Falcon Berhad in 2014 and was subsequently promoted through the rank until he was appointed as the Assistant Vice President of TI in 2019. In January 2022, Falcon Berhad merged with another company and a business restructuring was done to align the company's strategies and future direction.
Consequently, on 2nd February 2022, the company issued a letter to Vimalan telling him that his position has been redesignated from Assistant Vice President of IT to Technical Director . Vimalan was asked to vacate his office on the 13th Floor designated for top management and shift to 11th Floor, the general office area together with other managers. The management also requested Vimalan to surrender the key to the Toyota Camry that the company gave him, and he will be assigned to a Proton Persona usually given to first level managers in the company. Nevertheless, his salary and allowances remain the same.
Vimalan was surprised and angry upon receiving the letter . This is because as Technical Director, his supervisory power wil be significantly reduced although his job scope remains the same. Further, the act of asking him to shift office and return the key to the Toyota is very unreasonable and humiliating since he is the only manager who was asked to do so by the
company. However, the company claimed that they are merely exercising their management rights in reorganizing their business. The company said that they are free to change or take away any benefits due to an employee fi the benefits are not stated in the employment contract. The company further stated that Vimalan cannot complain as there is no change to his salary even when he is redesignated as the Technical Director.
Vimalan is unsure of what to do. He feels betrayed by the company. One week has passed from the time he received the letter. Since then, he has only been to the office once to pack his belongings and have taken emergency leave for the rest of the week.
You are Vimalan's best friend, and you happened to be an HR consultant. Vimalan told you that he feels like resigning but is not sure whether that is the best action under the circumstances.
Questions
1. Identify the relevant labour law principle that can be used in this case and provide a brief explanation of the principle. Support your answer with ONE (1) case law.
2. Based on the principle explained in (a), advise Vimalan on the steps that he should take and his chance of success fi he were to claim against his employer in Industrial Court.