Case Law

What Wong Chee Hong Means For You

The case that set the test for when a forced resignation counts as dismissal.

What The Case Decided

Wong Chee Hong v Cathay Organisation (M) Sdn Bhd is the foundation of constructive dismissal law in Malaysia.

The Supreme Court decided it in 1988, reported at [1988] 1 MLJ 92.

The court adopted what is now called the contract test.

It was borrowed from the English case Western Excavating v Sharp.

A worker may treat themselves as dismissed only where the employer commits a breach going to the root of the contract.

Or where the employer shows a clear intention no longer to be bound by it 1.

What The Principle Means Plainly

The key word is fundamental.

A pay cut imposed without your agreement can meet this bar.

So can a demotion in all but title, or a unilateral change to your core duties.

General rudeness or a difficult manager usually will not.

Those do not strike at a core term of the contract.

What It Means For A Worker

If you are considering forced resignation, this case is the test your situation will be measured against.

Identify the specific term that was broken.

Then show the breach was serious, not just unpleasant.

Keep every document that shows the change, such as a letter, an email or a payslip.

The Industrial Court will look closely at what actually changed and when.

Where This Fits In A Claim

This case sits at the very start of a constructive dismissal claim.

It comes before the four conditions from Anwar Abdul Rahim v Bayer are even considered.

Your own outcome will always turn on the specific facts of your case, and no result here is promised.

The sixty day window to act under Section 20 still applies.

Checking the deadline calculator early is worthwhile.

Working out whether your own situation meets this test is easier with someone who has read the surrounding case law, and a short conversation can help you see where you stand.

Common questions

What did Wong Chee Hong v Cathay actually decide?

The Supreme Court adopted the contract test for constructive dismissal in Malaysia. A worker may treat the employment contract as ended only where the employer commits a breach going to the root of the contract, not merely unreasonable conduct.

Does this case mean any unfair treatment counts as dismissal?

No, the court was clear that unreasonable conduct alone is not enough. The breach has to strike at a core term of the contract, such as pay, position or a fundamental duty the employer owes you.

How is this case used in a claim today?

It remains the starting authority cited in almost every constructive dismissal case, including scenarios like forced resignation. It sets the legal test the Industrial Court applies before it even looks at your specific facts.

Sources

  1. The Supreme Court adopted the contract test: a worker may treat the contract as ended if the employer commits a breach going to the root of the contract. Thomas Philip Advocates & Solicitors (accessed 2026-09-22)

Working out whether your own situation meets this test is easier with someone who has read the surrounding case law, and a short conversation can help you see where you stand.