Crime & Courts

GLC ordered to pay ex-staff RM931,770 over 'demotion'

KUALA LUMPUR: The Kota Kinabalu Industrial Court has ordered a Sabah-owned company to pay RM931,770 in compensation to a former senior manager for constructive dismissal.

The court ruled that Siti Mariam Abdul Rahman was dismissed without just cause after being effectively demoted by Borneo Samudra Sdn Bhd, a subsidiary of Sawit Kinabalu Sdn Bhd, owned by the Sabah government, FMT reported.

Court chairman Indra Ayub said that while Siti Mariam's salary and job grade remained unchanged, her transfer to the company's Tawau office required her to perform tasks from a lower grade (M6), reducing her status and responsibilities.

This amounted to a demotion, forcing her out of the company.

Siti Mariam, who joined as a regional accountant in 1996 and was later promoted to senior manager of financial accounting, was transferred in January 2021.

On Feb 17, she reported to the Tawau office as senior manager of regional accounts.

Five days later, she protested in writing, citing it as a demotion, and resigned on March 19, 2021, citing constructive dismissal.

Indra said that while management has the right to transfer employees, this authority must be exercised reasonably.

The court found Siti Mariam had given the company ample opportunity to address the issue but resigned when it was clear the company would not rectify it.

As a result, the court awarded Siti RM517,650 in lieu of reinstatement—one month's salary for each of her 30 years of service based on her last drawn monthly pay of RM17,255—and 24 months' back wages totaling RM414,120.

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