{"id":6123,"date":"2026-03-30T09:48:53","date_gmt":"2026-03-30T01:48:53","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=6123"},"modified":"2026-03-30T09:48:53","modified_gmt":"2026-03-30T01:48:53","slug":"employment-retrenchment-industrial-court-upholds-global-restructuring-redundancy-valid-despite-ongoing-work-overseas","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/zh\/employment-retrenchment-industrial-court-upholds-global-restructuring-redundancy-valid-despite-ongoing-work-overseas\/","title":{"rendered":"EMPLOYMENT &#8211; RETRENCHMENT \u2013 INDUSTRIAL COURT UPHOLDS GLOBAL RESTRUCTURING: REDUNDANCY VALID DESPITE ONGOING WORK OVERSEAS"},"content":{"rendered":"\n<p><strong>1. Summary and Facts:<\/strong><br>Sin Leong v BT Systems (M) Sdn Bhd [2025] 4 ILJ 221 concerns on the retrenchment arising from redundancy, particularly in the context of global corporate restricting. The Claimant, employed since 2007 and in July 2022, BT Group\u2019s Global HQ decided to reorganize globally, consolidating Malaysia Access Costing Team and relocating its functions to the India Hub. On 31.10.2022, the claimant received a redundancy notice, and his employment ended 31 December 2022. Further, he was paid; notice pay, accrued entitlements and ex-gratia compensation amount to RM201,454.20.<\/p>\n\n\n\n<p>Therefore, the claimant challenged the retrenchment under Section 20(3) Industrial relations Act 1967.<\/p>\n\n\n\n<p><strong>2. Legal Issues:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Whether the termination of the claimants\u2019 employment on the grounds of redundancy was with just cause and excuse.<\/li>\n\n\n\n<li>Whether the reorganization was bona fide or victimization.<\/li>\n\n\n\n<li>Whether the employer was obliged to redeploy the claimant or offer alternative employment.<\/li>\n\n\n\n<li>Whether the Last In First Out (\u201cLIFO\u201d) principle applied, since the entire department was closed.<\/li>\n<\/ul>\n\n\n\n<p><strong>3. Court\u2019s Findings:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The termination of the claimant\u2019s employment on the grounds of redundancy was with just cause and excuse since the employer successfully proved that the claimant\u2019s position becomes redundant due to a genuine restructuring exercise.<\/li>\n\n\n\n<li>The claimant\u2019s role ceased to exist in Malaysia after the department\u2019s functions were transferred overseas.<\/li>\n\n\n\n<li>No evidence of victimisation was proven.<\/li>\n\n\n\n<li>The organization was bona fide and not of an act of victimisation as restructuring was a legitimate business decision aimed at improving efficiency and reducing costs.<\/li>\n\n\n\n<li>The employer was not obliged to redeploy the claimant or provide alternative payment as no legal duty to transfer the claimant to another position.<\/li>\n\n\n\n<li>The LIFO principle did not apply since the whole department was abolished and no need to select employees for retrenchment.<\/li>\n<\/ul>\n\n\n\n<p><strong>4. Practical Implications:<\/strong><br>This judgment affirms the several principle of laws including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employer must follow proper procedure before dismising employees.<\/li>\n\n\n\n<li>Employees are protected from unfair dismissal.<\/li>\n\n\n\n<li>Clear evidence is needed to justify termination.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Sin Leong v BT Systems (M) Sdn Bhd [2025] 4 ILJ 221, the Industrial Court upheld the employer\u2019s retrenchment exercise following a global restructuring, ruling that the claimant was lawfully dismissed due to genuine redundancy. Although the claimant\u2019s functions continued in India, the Court held that the abolition of the entire Malaysian team sufficed to establish redundancy. The company\u2019s profitability did not negate the restructuring, and the LIFO principle did not apply since the whole department was closed. The decision reinforces that courts will respect managerial prerogative, provided the retrenchment is bona fide and not tainted by mala fide or victimisation.<\/p>\n","protected":false},"author":1,"featured_media":6150,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1573,1572],"tags":[3775,3778,3776,3773,3777,3774,3766],"class_list":["post-6123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","category-labor-law","tag-employment-law-malaysia","tag-industrial-relations-act-1967","tag-lifo-principle","tag-redundancy","tag-restructuring","tag-retrenchment","tag-unfair-dismissal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EMPLOYMENT - RETRENCHMENT \u2013 INDUSTRIAL COURT UPHOLDS GLOBAL RESTRUCTURING: REDUNDANCY VALID DESPITE ONGOING WORK OVERSEAS | Yew Huoi, How &amp; 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