Case Law

Your Employer Cannot Blur The Real Reason

Why the court must decide if you were truly retrenched or dismissed for misconduct.

What The Case Decided

Kumpulan Perangsang Selangor Bhd v Zaid bin Hj Mohd Noh addresses what happens when the reason for a termination is unclear.

The Federal Court decided it in 1997, reported at [1997] 1 MLJ 789.

The court found that the Industrial Court below had wrongly concluded the worker was dismissed with just cause.

It had failed to properly consider the issues raised.

It also failed to work out whether the job ended through a genuine retrenchment or a dismissal for misconduct 1.

What The Principle Means Plainly

An employer cannot leave the real reason for your termination vague.

Retrenchment and misconduct dismissal are tested by different legal standards.

The Industrial Court has to pin down which one applies before it can reach a fair conclusion.

A blurred or shifting explanation from your employer is not something the court can work around.

What It Means For A Worker

If the reason given for ending your job was unclear or changed over time, that inconsistency is worth raising directly.

Ask whether your role was genuinely made redundant, following principles such as last in first out.

Or ask whether you were really being blamed for something specific.

Each path requires different evidence.

Identifying which one applies early helps you prepare the right case.

Where This Fits In A Claim

This principle applies at the very start of an unfair dismissal claim.

It comes before the specific rules for retrenchment or misconduct are even applied.

The Industrial Court is required to make this finding clearly.

Your outcome still depends on the underlying facts, with no result promised.

Since clarity does not extend your filing window, check the deadline calculator soon.

Working out which category your termination really falls into is a useful first step an employment lawyer can help you clarify.

Common questions

What did the Federal Court find in this case?

The Industrial Court below had wrongly concluded the worker was dismissed with just cause without properly working out whether the termination was a genuine retrenchment or a dismissal for misconduct. That distinction had to be decided first.

Why does it matter whether it was retrenchment or misconduct?

The two are judged by very different rules. Retrenchment looks at whether the redundancy was genuine and fairly selected, while misconduct looks at proof of wrongdoing and whether dismissal was a proportionate response.

What if my employer used a vague or shifting label for my termination?

That vagueness itself can be a point in your favour, since the court is required to work out what actually happened rather than accept a loose description from your employer.

Sources

  1. The Industrial Court had failed to consider the issues raised and to work out whether the ending of employment was a genuine retrenchment or a dismissal for misconduct. Mah Weng Kwai & Associates (accessed 2026-09-22)

Working out which category your termination really falls into is a useful first step an employment lawyer can help you clarify.