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Employment Law · HR Compliance · Business Management

Federal Court | 2026 Landmark CaseDirector · Employee Owners, Shareholders and Directors Can Also Be Employees! Federal Court’s 2026 Ruling: Removal from the Board Does Not Automatically End the Employment Relationship Acexide Technology v Chang Heng Keong [2026] 7 CLJ 687: two Directors removed by a shareholders’ general meeting were still held to be workmen, and the company was ordered to pay compensation totalling more than RM2 million. Remove Director ≠ Terminate Employee – the 5 Director arrangements SMEs and family businesses most often get wrong. Jeslyn Thoe, Legal Advisor · Read more → Employment LawHonesty · Company Property Fired for Taking Free Company Gifts? The Industrial Court Says the Issue May Be Authorisation, Not Value An employee took free-of-charge (FOC) items from the customer service counter without authorisation, and Industrial Court Award 1592/2026 upheld the dismissal. Some misconduct is about trust, not loss, but employers still cannot skip the investigation and evidence. Jeslyn Thoe, Legal Advisor · Read more → Employment LawMinimum Wage 2027 Minimum Wage RM2,000 in 2027: SMEs Are Exempt, but Will Resignation Letters Force a Pay Rise? SMEs with annual sales below RM50 million are exempt, but the talent market won’t exempt you. When an employee quits without serving notice, can you claim indemnity in lieu of notice under Employment Act 1955 s.13(1)? What bosses should prepare before June 2027. Jeslyn Thoe, Legal Advisor · Read more → Employment LawProbation · Performance Can You Simply Not Confirm a Probationer for Poor Performance? The Company Was Ordered to Pay RM173,400 The appraisal was prepared after probation ended, the employee first saw it on the day he was dismissed, and the company had kept paying him a full performance incentive. Industrial Court Award 1580/2026 found the dismissal without just cause or excuse. Probation is not a “free termination period”. Jeslyn Thoe, Legal Advisor · Read more → Employment LawWorkplace Sexual Harassment The Company Interviewed 27 People – So Why Did It Still Pay RM358,400 After Dismissing the Employee? Key Warnings for Owners and HR from the BFM Media Industrial Court Case After receiving a sexual harassment complaint, the company set up an independent investigation committee and interviewed 27 people, yet the Industrial Court still found the dismissal to be without just cause or excuse. A thorough investigation ≠ sufficient evidence – the Evidence Check HR must carry out before issuing a termination letter. Jeslyn Thoe, Legal Advisor · Read more → Employment LawIndustrial Court Cases Can You Dismiss an Employee Who Tests Positive for Ketum? Key Reminders for Owners and HR from a Recent Industrial Court Award An employee consumed Ketum while on leave and tested positive in a urine test on returning to work. Industrial Court Award 1671/2026 upheld the dismissal – but the real lesson is how the company built a disciplinary process that could withstand scrutiny, from testing to the Show Cause Letter to the Domestic Inquiry. Jeslyn Thoe, Legal Advisor · Read more →

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