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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.

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