the sun malaysia ipaper logo 150x150
Friday, July 24, 2026
28.5 C
Kuala Lumpur
the sun malaysia ipaper logo 150x150

Insurance firm ordered to pay probation staff RM162,000 following demotion and dismissal

PETALING JAYA: An Industrial Court chairman said probationers should not be placed in uncertainty as they have a legitimate expectation for confirmation in their workplace.

Industrial Court chairman Jeyaseelen T Anthony, based in Penang, said an employee under probation must be treated with due respect and dignity just like a permanent employee.

“The employer has an implied duty to hear the legitimate grievances of the probationer and assist in whatever way possible, instead of acting mechanically, without thought and devoid of conscience,” he was quoted as saying by Free Malaysia Today.

In the case of a senior marketing manager named Adeline Yeoh, who was not confirmed at her workplace Tune Insurance Malaysia Bhd, Jeyaseelan ruled that she was dismissed unfairly.

Yeoh was hired as the employer’s Penang branch manager effective Oct 1 2019 and required to serve a probation period of three months.

ALSO READ: Man fired for napping sues company, wins over RM200k

He said the company’s decision not to confirm her employment as a branch manager was “arbitrary and capricious”, as quoted.

With this, Yeoh’s employers were ordered by Jeyaseelan to pay a compensation of RM180,000, in the form of 12 months worth of back wages, also the maximum amount allowed to be rewarded to a probation employee.

However, the compensation was reduced, payable by 10% by Jeyaseelan, due to post-dismissal wages now resulting in a total of RM162,000.

When Yeoh was dismissed by her employer, she reportedly drew a monthly pay of RM14,000 and received a monthly car allowance of RM1,000.

Jeyaseelan added that a probationary staff was not entitled to compensation in stead of reinstatement.

ALSO READ: Former AirAsia pilot awarded more than RM268,000 for constructive dismissal

After Yeoh was hired as probation staff in the company, her probation period was extended three times until its expiry on Oct 1 2020.

According to the plaintiff, she claimed her superiors did not appraise her performance which was required under the company’s standard operating procedure and she was neither counselled or issued with any written complaint regarding her performance at work at the end of the first probation.

In late October 2020, a superior suddenly announced Yeoh’s change of job title from Penang branch manager to marketing officer, offering a reduction in her salary to RM10,500.

Yeoh turned down the offer, claiming it was equivalent to a demotion, resulting in a “non-confirmation” letter, as quoted, with her employer claiming she did not achieve her key performance index (KPI) targets.

It was also noted by Jeyaseelan that Yeoh’s probation period was in the middle of the Covid-19 pandemic and pointed out that the government imposed a movement control order (MCO) effective March 18 2020.

“Despite these challenges arising from the pandemic and the MCO, it can be gathered that the claimant did not just sit quietly but had instead taken the effort and initiative to push for an increase in the company’s business,” he was also quoted as saying.

Despite this, the company was reportedly “hell-bent”, as quoted, on making sure the claimant achieved all her KPI targets.

Yeoh was represented by Pravin Kaur Jessy and Ajit Singh Jessy while the company was represented by M Leenalochana and Muhajir Wazinie Morchseinie.

STAY AHEAD OF THE CURVE

Join our community for instant updates and exclusive content.

Join Telegram Channel

Related


spot_img

Latest News

RZOLV and Alkemio Bioscience forge strategic collaboration to advance rare earth and critical minerals...

RZOLV Technologies has signed a non-binding letter of intent with Argentina-based Alkemio Bioscience to jointly develop an integrated modular platform for recovering, separating and refining rare earth elements and critical minerals, paving the way for pilot-scale validation and commercial deployment.

“Across the Table” – Iconic chefs come together for luxury dining series at The...

The Naka Island, Phuket, will host the "Luxury Dining Series: Across the Table" from 12–15 August 2026, featuring Michelin-starred chefs, renowned mixologists and immersive culinary experiences that celebrate fine dining, Thai hospitality and the island's rich culture.

Shopee strengthens support for Malaysian businesses with new growth initiatives

Shopee Malaysia has introduced new seller growth initiatives under Shopee Lindung Niaga, including fee waivers, reduced commission rates, free advertising credits and fulfilment incentives to help local MSMEs start, scale and grow sustainably.

Watsons unveils “Watsons Evergreen” with Pantone to celebrate 185 years of trusted care and...

Watsons has launched "Watsons Evergreen" in collaboration with the Pantone Color Institute to celebrate its 185th anniversary, introducing a signature colour that represents trusted care, everyday vitality and the brand's enduring connection with customers across global markets.

STAMPEDE creates 11,000 free business pages to bring Singapore’s AI push to local F&B...

STAMPEDE has launched 11,000 free business pages to help Singapore F&B operators adopt AI-powered loyalty programmes, enabling hawkers, cafés and restaurants to improve customer retention, referrals and repeat visits without complex technology or additional hardware.

Alylytiq launches AI-powered research solutions to make big-brand insights affordable for Singapore SMEs

Market research consultancy Alylytiq LLP today announced the launch of Automytiq, a suite of AI-powered research solutions designed to make professional-grade market insights accessible to Singapore's small and medium-sized enterprises.

Thailand secures $43.6bn 1H 2026 investment surge as big tech accelerates Southeast Asia AI...

Thailand recorded US$43.6 billion in investment applications during the first half of 2026, led by AI data centres, digital infrastructure and renewable energy projects, strengthening its position as a key Southeast Asian hub for technology, manufacturing and foreign direct investment.

Most Viewed

spot_img
WC26

World Cup 2026

Updates, Fixtures, Results & Standings