KUALA LUMPUR: The role of Human Resources (HR) practitioners is more crucial today in any organisation unlike in the past where it is usually tucked away amidst ‘administrative’ duties.
Court of Appeal judge, Datuk Umi Kalthum Abdul Majid said the role played of a HR practitioner and their proficiency is important, especially when it comes to industrial relations, which will certainly impact the number of cases reaching the Industrial Court
Citing statistics from the Human Resources Ministry, she said in 2016 the number of cases brought to the Industrial Court stood at 1,340, out of which 1,226 related to unfair dismissals. The figure of 1,340 new cases is an average of 112 new cases per month.
“Additionally, in 2016, 994 cases were disposed of/settled by the Industrial Court, of which 869 related to unfair dismissals.
“In terms of awards for the year 2016, a sum of RM9,524,058 was awarded as back wages and RM2,849,508 as compensation in lieu of reinstatement, and together with other awards, the total was RM21,841,008.00.
“Up to March of 2017, there had been 384 new cases brought to the Industrial Court. This represents an average of 128 new cases for the first 3 months of this year alone.
“Out of the 384 new cases, 336 related to unfair dismissals. In terms of awards, and up to March 2017, the sum of RM1,903,359 was awarded for back wages, RM737,159 for compensation in lieu of reinstatement, and together with other awards, the total was RM5,473,095.00,” she said in her address at the opening of the MECA Industrial Relations Convention 2017.
Umi Kalthum said the statistics give an impression that employers underestimate the importance of industrial relations, employment and labour laws.
She adds that employers remain mostly in the dark, or at best, in the shade over the right procedure to be taken before an employee can be dismissed from employment.
This is despite the fact that industrial relations, employment and labour laws of Malaysia had been around for years.
Umi Kalthum explained that while numbers are rising and indicates a concern, it is a natural progression as the Malaysian population increases.
“More cases would naturally surface if a population is growing. It is normal. We should worry when with a growing population the number of cases are diminishing.”
She added that HR practitioners play a critical role as they are in a position to tackle employee relations issues in the right manner such that litigation can be avoided.
“It is the HR practitioner who can first react to a potential employment conflict. A competent practitioner can avert a conflict altogether.
“Litigation is a painful process. The dismissal of a workman injures the workman and his family. The litigation process, with the prospect of reinstatement or a hefty compensation award, and, in certain circumstances, damage an employer,” she said.
Apart from this, HR is the department that is charged with having in place the right people depending on the changing needs of the business, she said.
“If an employer changes its business model or ventures into a new business area, it is the HR practitioner who will have to take charge of the restructuring.
“Depending on the skills set needed, employees may have to be moved around, trained and, in some cases, retrenched.
“It therefore follows that the importance of having a competent HR department cannot be underestimated,” she said.
At the conference, Umi Kalthum also launched a book by MECA Chairman, T. Balasubramaniam. The book entitled – A Practical Guide to the Industrial Relations Act 1967 – serves as an informative guide for both HR practitioners, employers, and both unionised and non-unionised employees.