A recent Industrial Court ruling has ordered Heineken Malaysia Bhd to compensate their former senior IT manager RM893,200 following an unfair dismissal case, as reported by Free Malaysia Today.
Facts of the Case
The case involves Heng Hui Chuen, who served the brewery for 21 years before her employment was terminated. Industrial Court chairman Augustine Anthony found that the company’s reorganisation and subsequent performance assessment led to her unjust departure.
Throughout her tenure, Heng demonstrated professional growth, eventually becoming IT Operations Head in 2017. Her performance records show consistent positive ratings, “exceeding expectations” from 2014 to 2016, and “meeting expectations” in 2017 and 2018.
A significant shift occurred in 2019 with the appointment of Tee Chin Yi as the new transformation and technology head. Under the new leadership, Heng’s performance was rated as “partially meeting expectations,” leading to her placement in a performance improvement plan (PIP) the following year.
The Court’s examination revealed several noteworthy circumstances:
- Between July 2019 and January 2020, Heng experienced a reduction in her team as subordinates were transferred from her supervision
- The assessment period coincided with significant organisational changes
- Documentation supporting the negative performance evaluation was deemed insufficient
- Earlier in 2019, multiple superiors had acknowledged Heng’s outstanding performance
The Awards
The compensation ordered comprises RM424,270 in back wages (19 months) and RM468,930 as compensation in lieu of reinstatement (equivalent to 21 months’ salary), based on her final monthly salary of RM22,300.
Key Takeaways:
- Organisational changes should be implemented with clear documentation and fair assessment procedures
- Performance evaluations need to consider contextual factors such as structural changes
- Companies should maintain comprehensive records to support performance assessments
- Regular and well-documented performance reviews are essential for both employers and employees
- Clear communication during organisational transitions helps prevent potential workplace disputes
How rich people around us. Justice belong to the right person