PUTRAJAYA: Semiconductor giant Osram Opto Semiconductors Sdn Bhd (Osram) was ordered to pay more than RM1.5 million to its former senior officer for unjustified retrenchment nine years ago.
In a unanimous decision, a three-member bench of the Court of Appeal, presided over by Judge Datuk Lee Swee Seng, granted the award to 57-year-old Ooi Mei Chein @ Wei Mei Chein, who was simultaneously contending with the challenges of divorce proceedings and the complexities of child custody and maintenance.
Other members of the bench were Datuk Supang Lian and Datuk Ahmad Zaidi Ibrahim.
The court awarded compensation in lieu of reinstatement of RM804,650 and back wages of RM772,464 to the company's former Treasury and Commercial Administration Services head who earned RM32,186 per month at the time of her termination.
Ooi, who had served with the company for 24 years, was laid off when the company opted to outsource its accounting and treasury functions to a Global Shared Services Organisation (GSS), rendering Ooi's position redundant.
However, Ooi argued that her services remained indispensable, emphasising that while some functions were absorbed by the GSS, 19 functions and 15 of her roles remained unchanged, highlighting the ongoing relevance and necessity of her contributions to the company.
The court said the retrenchment exercise must be conducted genuinely, without any bad faith, ensuring it is not undertaken for collateral purposes like cost-cutting measures or corporate restructuring under the guise of focusing on core business.
"It must not be done for the purpose of getting rid of perceived stumbling blocks in old timers who may well have passed their prime to give way to young Turks who perhaps, oblivious to the risks ahead, are prepared to venture afar and 'to boldly go where no one has gone before', to borrow the famous split infinitive from Star Trek.
"For some people facing life's challenges, it never rains but pours, and for her it was battling both the uncertainty of being unemployed and the adjustment of being a single parent to two children, coping with the issues of custody, access and maintenance that flow from a divorce.
"The retrenchment exercise rendering the respondent (Ooi) redundant was not carried out bona fide (in good faith) but was undertaken for an oblique and collateral purpose of getting rid of her for reasons best known to it," said the court.
The court said it was apparent that there has been a breakdown in the essential mutual trust and confidence among key staff, particularly at the director level, which is necessary for confidential discussions.
The court said Ooi stated that she could no longer trust her superiors and colleagues, alleging that she was lied to and deceived by them, leading up to her termination.
"One cannot always be looking over one's shoulder to see if anyone has a dagger.
"Confidence, once broken, cannot be restored and while time may have its healing properties, it is a luxury that most companies can ill-afford.
"Having to work with people that one no longer can trust would be stressful and unhealthy, psychologically speaking.
"We hear what the respondent is saying in that she needs to work to feel fulfilled and fruitful as a productive person," said the court.
The court said given the complexity and evolving nature of the factors involved, awarding compensation rather than reinstatement is appropriate in this case.
The court also awarded costs of RM15,000 to be paid by the company.