KUALA LUMPUR: The Industrial Court awarded approximately RM1.1 million in compensation to a senior manager of an aircraft maintenance company for unfair dismissal.
Court chairman Augustine Anthony awarded Fawaid Daud a total of RM1,137,192, comprising RM487,368 in back pay and RM649,824 as compensation for the loss of reinstatement, FMT reported.
He said Fawaid, who had been an employee of Airod Sdn Bhd for 32 years, was given a fixed-term annual contract from Jan 1, 2000, to Dec 31, 2020.
"There is no dispute that the claimant was a permanent employee of the company, having started work on Aug 1, 1988.
"However, he was only offered a fixed-term employment contract on Jan 1, 2000," he said in a 58-page award released last week.
Anthony said the company intended to retain Fawaid as a permanent employee. Fawaid had served with an unblemished record and was always willing to be transferred from one department to another.
He said that Fawaid had a legitimate expectation to continue working until he reached the mandatory minimum retirement age of 60.
He added that while companies and business entities have the full right to operate for profit, they cannot disregard the welfare of their employees.
"The court finds that the company failed to prove on the balance of probabilities that the claimant's dismissal was for a fair reason," he said.
Although the claimant had not reached the age of 60 at the time of the compensation award, Anthony refused to reinstate him, considering it an unsuitable solution in this case.
Fawaid began working with the company in 1988 as an engineer with a salary of RM1,300. He was promoted to deputy manager on July 1, 1993, due to good performance.
On Jan 1, 2000, the company appointed Fawaid as general manager on a one-year fixed-term contract, which had been renewed continuously for 20 years since then.
After 32 years of service, on Dec 21, 2020, the company issued a service contract termination letter to Fawaid, effective Dec 31, 2020.
Fawaid claimed that the dismissal was malicious, illegal, an act of persecution, and an unfair labour practice.
According to the company, starting Jan 1, 2000, the claimant was categorised at the management level with a lucrative salary scheme and additional benefits not enjoyed by other permanent employees.
The company said according to its policy, all management-level employees would only be offered annual fixed-term contracts.
However, Anthony said the evidence did not support the company's argument because the employment contract dated Aug 1, 1988 stated the claimant was employed at the managerial level.
Anthony also said a review of the evidence showed that the claimant's remuneration when appointed as general manager was no different from that of the company's permanent employees.
Fawaid was represented by lawyer Nur Shazwani Shadan, while Syafiq Amani Sabri represented the company.