Magnanimity Prevails
22
Oct

A notable recent success which we have achieved is a case where a group of employees brought a claim for termination benefits on grounds that the company had essentially terminated their services by not providing work for them and containing them in certain areas where they would be either trained or left to their own. This was done by the company as a result of the significant reduction in orders necessitating the shutting down of an entire line in its factory.

However, being a Japanese giant, who believes in life long employment, the company backs its ability to win new orders and reopen the line. During this interim period, they decided to keep all employees in continued employment but of course not working on the line as the line was now shut. About 25 employees took the stand and attempted to convince the court that they were subjected to abuse, ridicule and left unattended.

DSP, however, managed to convince the court that despite having a legal right to retrench the impacted employees, the company took the magnanimous decision to retain them in employment throughout the line shut down with the view of reopening the line upon securing new business. The total claim of more than a million ringgit was rejected by the court.