Money, money, money … at the Industrial Court?

Damien Kiethan
Partner at Raj, Ong & Yudistra

Background: Abba’s Money, Money, Money:

Money, money, money

Must be funny

In the rich man’s world

Money, money, money

Always sunny

In the rich man’s world

Aha

All the things I could do

If I had a little money

It’s a rich man’s world

On 6.6.2023, the Court of Appeal in ACE Holdings Sdn Bhd v Norahayu Bt. Rahmad & the Industrial Court of Malaysia held that the Industrial Court has the power to hear unfair dismissal cases that seek only money; and not reinstatement.

The Industrial Court does not lose its jurisdiction to hear a case simply because an Employee does not seek to be reinstated to his/her former position. Moreover, allowing pure monetary claims to be made at the Industrial Court would reduce the workload of Civil Courts; and protect Employees’ interests and livelihood.

This case involved a claim at the Industrial Court by Norahayu bt. Rahmad (“Norahayu”), a former Vice-President of ACE Holdings Bhd (“Employer”). Norahayu decided not to seek reinstatement of her job from her Employer in the Industrial Court:

Consequently, the Industrial Court held that it does not have jurisdiction to hear and decide on Norahayu’s case. Because, the remedy of reinstatement was not sought.
However, the High Court quashed the Industrial Court’s decision; and held that the Industrial Court cannot dismiss Norahayu’s claim simply because she did not ask for reinstatement. The High Court’s decision was then affirmed by the Court of Appeal.

TLDR: There is no need for Employees to seek for reinstatement of their jobs anymore, if they intend to bring their claims before the Industrial Court. Employees can seek for monetary claims, alone.

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