Latest news with #LimTeongKim
Daily Express
2 days ago
- Business
- Daily Express
Need to justify termination
Published on: Monday, August 11, 2025 Published on: Mon, Aug 11, 2025 By: John Mark Text Size: JUST LAST week the Industrial Court (IC) ordered Football club Perak FC Sdn Bhd to pay RM1.04 million in compensation to former head coach Lim Teong Kim for unfair an earlier case, two former director-employees were awarded more than RM2 million. Advertisement These outcomes underscore the significant financial risks businesses face when termination of employment are mishandled. An ex- employee who believes they have been unfairly dismissed can file a complaint under Section 20(1) of the Industrial Relations Act 1967 with the Industrial Relations Department (IRD) within a strict 60-day window from the date of termination. The IRD's initial step is to organise a conciliation session to help both the former employee and employer find an amicable resolution. If a settlement is reached, the IRD will facilitate the creation of a Memorandum of Agreement. If the dispute cannot be settled, the Director-General of the IRD will refer the case to the Industrial Court (IC). Advertisement Our employment laws are very different from the at-will employment such as in the US where there's no requirement to establish 'just cause' for termination. The Federal Court in Maritime Intelligence Sdn Bhd v Tan Ah Gek [2021] 10 CLJ 663, stated that the right to livelihood in the context of employment is a fundamental right guaranteed under Article 5(1) of the Federal Constitution. Section 20(1) exemplifies this very right. The Federal Court also emphasised the importance of giving clear reasons when terminating an employee as these will be closely scrutinised by the IC. Employment law in essence is a social legislation which is intended to protect employees but it allows employers to terminate employees if they have valid reasons. It puts in place, checks and balances on the employer to justify the reasons for termination. Some examples of direct termination of employment Misconduct Covers a wide spectrum of situations from absenteeism to sexual harassment and criminal breach of trust (CBT). Rules of natural justice require the employee to be given an opportunity to be heard and defend himself. The employee should be given a show cause letter with clear descriptions of his misconduct. Material facts such as description of the alleged misconduct, time and date, location and the parties (such as immediate superior, colleague or even a victim). This would enable the employee to understand the alleged misconduct and give a proper reply. The employee would either admit/plead guilty or deny. The employer may accept the employee's explanation or disagree if the reply is found unsatisfactory. The employer may proceed to conduct a formal domestic inquiry (or due inquiry), an internal process to investigate whether the employee has committed the alleged misconduct. Based on the domestic inquiry findings, the management would be able to decide an appropriate punishment such as a written warning or dismissal being the heaviest punishment. Failure to conduct a domestic inquiry is not fatal or a must. Hence some employers may choose not to conduct a domestic inquiry and base their decision on their investigation and on the show cause letter. However, the importance of having a domestic inquiry cannot be soft-peddled. The IC in Syarikat Telekom Malaysia Berhad v Saidon bin Puteh [1996] 1 ILR 619, observed that: 'A due inquiry properly conducted and well documented …provides a reliable record for the employer to turn to when, due to the effluxion of time witnesses have become unavailable or memories have faded, the employer is fixed with difficulties in having to prove his case before an industrial tribunal…' There's a possibility that witnesses and records may be unavailable to the employer when the case reaches the IC. Hence, conducting a domestic inquiry may still be relevant and practical. It is pertinent to note, that establishing misconduct doesn't always justify dismissing an employee. The Doctrine of Proportionality of Punishment requires that the punishment must fit the offence or must be appropriate. The employer should consider the severity of the alleged conduct, the employee's employment record and other relevant factors. Non-confirmation and poor performance These concern employees who don't meet minimum standards or achieve targets. New hires would normally be on a probationary period (usually for three to six months) to test them on their suitability and ability to perform the job. If they fall below the standards or do not perform, employers may choose not to confirm the employee. They must be appraised, warned of their shortcomings and given sufficient opportunity to improve and given guidance/coaching. If confirmed employees later become non-performers, it would be prudent to place them on a Performance Improvement Plan (PIP) to give them the opportunity to improve. Having a structured and documented process is a must. Redundancy and rightsizing Restructuring of a business may result in a position being redundant or irrelevant. Businesses might do so to cut losses or to be sustainable in the long term. But they have to adduce evidence to justify such reasons or reasonable steps they have taken before taking such drastic measures. Advancement of technology or automation can also make a job redundant. For example, Elevator Operators, a position which existed since the invention of elevators became almost extinct with automation by the 70s. More recently, with artificial intelligence, there is a possibility that some jobs will be redundant. Incapacity or frustration of contract The employment contract becomes frustrated when it has become impossible for both parties to perform their obligations under the contract. Some examples include: Long-term illness or disability where the employee is unable to perform the job Impossible for a driver of a bus to drive a bus legally if he has been banned from driving busses by the authorities A new law or regulation which makes it impossible to conduct a business. If one day the government decides to ban vape/e-cigarettes, the manufacturer would be forced to cease operations. Expiry of a fixed-term contract Fixed-term employment contracts are employment contracts for a specified duration. Businesses commonly use such contracts for temporary work assignments or for a specific project. Such contracts merely end at the expiry of its term. The IC will scrutinise whether such contracts are genuine, based on business needs or not genuine, an attempt to circumvent protections afforded to employees. Finale caution The law mandates that employers must have a valid justification for terminating an employee. To successfully defend their actions in the Industrial Court, employers must ensure their termination process is meticulously structured and thoroughly documented.
The Star
2 days ago
- Sport
- The Star
Ex-Perak coach Teong Kim awarded RM1.04mil in unfair dismissal case
PETALING JAYA: Former Perak coach Datuk Lim Teong Kim has won his unfair dismissal case against Perak FC Sdn Bhd, with the club ordered to pay him RM1.04mil in compensation. Industrial Court chairman D. Paramalingam said the award was based on the remaining 16 months of Teong Kim's two-year contract, which was terminated on May 24, 2023, just eight months into his tenure. The 61-year-old was earning RM65,000 a month and the court ruled that Perak FC's decision to sack him mid-season over poor results was "premature and unjustified". Paramalingam noted that the club's finances were already under strain due to its "dwindling fortunes" even before Teong Kim took charge and that the allegations of misconduct levelled against him were not serious enough to warrant termination. Teong Kim, who earned 60 caps playing for Malaysia from 1982 to 1996, boasts more than two decades of coaching experience. He spent 12 years with Bayern Munich's youth set-up from 2000 to 2012 and later served as the head of Malaysia's National Football Development Programme and coach of the national Under-16 squad.
New Straits Times
2 days ago
- Sport
- New Straits Times
Teong Kim awarded RM1.04m after court rules Perak FC sacking unfair
KUALA LUMPUR: Former national player Datuk Lim Teong Kim has been awarded RM1.04 million in compensation after the Industrial Court ruled he was unfairly sacked by Perak FC. The payout — equivalent to his RM65,000 monthly salary for the remaining 16 months of his two-year contract — must be paid to his lawyers within 30 days. Industrial Court chairman D Paramalingam described the May 2023 dismissal as "premature, unjustified, and driven by commercial concerns." Teong Kim's lawyer, Edward Saw of Josephine, LK Chow & Co, said: "The award vindicates Teong Kim completely, as there was a lot of negative press about him at the time he was sacked." The court's 60-page ruling laid bare damaging details of his removal. It found that Perak FC's management had "nitpicked" over Teong Kim's strict disciplinary approach, revisited past allegations already settled with a final warning and public apology, and even instigated a players' mutiny by collecting complaints in secret at a Kuala Lumpur hotel on April 11, 2023. "These actions amounted to double punishment and were inequitable and unconscionable," the court ruled, adding that the club had placed unrealistic demands on Teong Kim despite operating on a limited rebuilding budget. Teong Kim signed with Perak FC in September 2022 but was axed just eight months later. His separate claim for RM25,002 in flight costs was rejected, with the court saying it should be pursued through a civil suit. A former Bayern Munich youth coach, Teong Kim also headed the s National Football Development Programme (NFDP) and the national Under-16 team. For the 61-year-old, the ruling closes a bitter chapter and restores a reputation built over decades in football.
Malay Mail
3 days ago
- Sport
- Malay Mail
Industrial Court orders Perak FC to pay RM1.04m to ex-coach Lim Teong Kim for unfair dismissal
KUALA LUMPUR — The Industrial Court has ordered Perak FC Sdn Bhd to pay RM1.04 million in compensation to former head coach Lim Teong Kim for unfair dismissal, according to Free Malaysia Today (FMT). Court chairman D Paramalingam said the amount was based on the remaining 16 months of Lim's two-year contract, which was terminated on May 24, 2023, just eight months into his tenure. The award stated that Lim, 61, would receive RM1,040,000 based on his agreed monthly salary of RM65,000. 'There can be no reinstatement under the circumstances as the said contract had come to an end by effluxion of time,' Paramalingam said in the 60-page decision released this week, as reported by FMT. He ruled that Perak FC's decision to sack Lim mid-season over poor performance was premature, unjustified and driven by commercial concerns, noting the club's finances had already been affected by its 'dwindling fortunes' before Lim's appointment. 'When the company appointed Lim, they were well aware it was going to be a long and arduous task of restoring glory to Perak football. They sacked him even before he could fully produce the results,' Paramalingam was quoted as saying. The court also found that allegations of misconduct levelled against Lim were not serious enough to justify termination. 'A final warning was given and Lim was instructed to issue a public apology to the media,' he said, adding that Lim complied, but the company later revisited the same issues to justify dismissal — despite the termination letter only citing unsatisfactory performance. Paramalingam reportedly said this amounted to 'double punishment', which was 'inequitable and unconscionable'. Tensions worsened when members of the management allegedly orchestrated a players' mutiny by secretly gathering complaints against Lim at a hotel in Kuala Lumpur on April 11, 2023, the award said. 'That is what the company chose to do when they could no longer find any fault with Lim after he heeded their final warning,' Paramalingam added. Lim, a former national player capped 60 times between 1982 and 1996, has over two decades of coaching experience, including a long stint with Bayern Munich's youth team from 2000 to 2012. He also headed Malaysia's National Football Development Programme and coached the national U-16 squad.
