The Case of Wooi Tee Boon v Trans Pacific Textile (M) Sdn. Bhd. – Is Transfer Letter Mandatory?

The case of 𝐖𝐨𝐨𝐒 π“πžπž 𝐁𝐨𝐨𝐧 𝐯 π“π«πšπ§π¬ 𝐏𝐚𝐜𝐒𝐟𝐒𝐜 π“πžπ±π­π’π₯𝐞 (𝐌) 𝐒𝐝𝐧. 𝐁𝐑𝐝. (π€π°πšπ«π 𝐍𝐨. πŸπŸ—πŸ“/πŸπŸŽπŸπŸ“), a case handled by Louis Liaw Vern Xien (as counsel), with Messrs Rachel Lim (as solicitors on record), for the Company.

Background:
1.Β This case concerns a constructive dismissal claim by Wooi Tee Boon (the Claimant) against Trans Pacific Textile (M) Sdn. Bhd. (the Company).
2.Β The Claimant was initially the Manager of the Knitting Department before being transferred to the role of Executive Assistant to the General Manager, as a result of the Company’s internal restructuring.
3.Β Due to the transfer, the Claimant was asked to hand over some confidential documents, but he failed to do so, claiming that he had thrown the documents away as they were damaged by rain and by monkeys.
4. This led to an investigation against him for the mishandling and alleged loss of these documents. Subsequently, a show cause letter was given, and a domestic inquiry (DI) was held.
5. The Claimant was suspended with full pay, then half pay, throughout this process.
6.Β However, whilst the DI had found him guilty of several misconducts,Β before the Company had decided on the disciplinary action to be taken against him, the Claimant left the employment on the basis of constructive dismissal.

The Claimant argued, amongst others:
1.Β The Company had demoted him by way of the transfer.
2.Β The Company had failed to give him a formal notice of transfer or a new employment contract.
3.Β The Company created a hostile work environment with the investigation against him for misconduct despite the documents were damaged by rain and monkeys.

The Company argued, amongst others,:
1.Β The transfer was not a demotion because the Claimant’s salary and benefits remained unchanged.
2.Β The transfer was within the prerogative of the Company and such discretion was also stated in the Claimant’s employment contract and the Company’s employee handbook.
3. The Claimant did not object to the transfer and even signed a Non-Disclosure Agreement recording his position as Executive Assistant.
4.Β The complaints against the transfer and work environment were mere afterthoughts to justify his resignation and make a claim of constructive dismissal.
5.Β The Claimant had voluntarily resigned, which was primarily to escape the finding of guilt for his misconduct.

The Court held & key takeaways:
1.Β The Claimant’s transfer was not malicious, nor did it amount to a demotion.
2.Β The Company’s failure to provide a new employment contract and transfer letter was not fatal as it was recognized that contracts can be both written and oral, and evidence shows that the Claimant has assumed the role.
3.Β An employer is entitled to investigate for any misconduct and to suspend an employee pending investigation.
4. The Claimant failed to prove that the Company had fundamentally breached his employment terms.
5. The Claimant’s constructive dismissal claim was thereby dismissed.

Read the full award here: AWARD_41534

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