A security firm was awarded nearly RM4 million in damages after a court ruled Nestle unlawfully terminated its service contract.
SHAH ALAM: The Shah Alam High Court has awarded nearly RM4 million in damages to security firm Uppal Aimed Guard Security Sdn Bhd.
Justice Shoba Rajah Dorai Rajah ruled that Nestle Products Sdn Bhd and Nestle Manufacturing (Malaysia) Sdn Bhd unlawfully terminated their security services agreement.
The court ordered damages of RM3,891,744.42, plus RM30,000 in exemplary damages and RM50,000 in costs to the plaintiff.
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The security firm entered a service agreement with Nestle on July 25, 2022, to provide guards at five premises from August 1.
The plaintiff claimed Nestle’s security manager asked on August 16 to replace three experienced Nepali guards with newly arrived foreign workers.
This request allegedly fell outside the agreement’s terms, but the security firm complied and supplied five new guards.
Nestle selected three guards despite being informed two were still awaiting work permit approval.
The plaintiff maintained the guards were lawfully in Malaysia and obtaining valid permits.
Nestle later claimed the guards lacked valid permits and suspended services at the Bandar Utama site.
The security firm’s offer to replace the guards was rejected by Nestle.
On November 7, 2022, Nestle terminated services at the Bandar Utama site immediately.
It also ended services at the four other premises with three months’ notice, citing a breach of contract.
The plaintiff alleged the termination was unlawful and made in bad faith.
It contended all three guards later obtained valid work permits with retrospective effect.
The company claimed Nestle failed to follow the agreement’s dispute resolution and cure provisions.
These provisions required notice and an opportunity to remedy any alleged breach before termination.
The defendants claimed the termination was valid as the workers lacked a valid Visit Pass. – Bernama
