Industrial Court castigates firm for using race card to dismiss employee

The Industrial Court has taken a company to task for using the race card in an unfair dismissal case.

The court made the censure in allowing S Janarthen's case against Auto Abundance Sdn Bhd for his termination of employment on March 14, 2022.

In awarding RM71,500 compensation to the claimant, court chairperson D Paramalingam disagreed with an allegation in the company's written submission against the claim.

The company alleged that Janarthen did not comply with company regulations as he had a “godfather” of the same race, in reference to one of the directors he was allegedly close to.

Paramalingam said it was rather unfortunate for the company to have "played the race card" in justifying the dismissal linked to a dispute between two shareholders-cum-directors who are of different ethnicities.

He said the claimant paid the price and lost his job as a quality assistant due to the disagreement between the directors.

"What we have here is an impasse between the two directors holding equal shares in the company.

"And in the midst of the ongoing tug-of-war between these two goliaths, the claimant became the proverbial sacrificial lamb," Paramalingam said in the written grounds dated July 11.

The chairperson noted that while Janarthen sought reinstatement, the court viewed this inappropriate due to the “open war between the two directors and shareholders”.

"Reinstating the claimant to his former position in the company would only stoke the fire and cause disharmony," Paramalingam said.

No proof

The court added that the company failed to prove three allegations against Janarthen that were used to justify his termination.

They include failing to punch in for work at proper working hours, drinking alcohol on the job, and challenging one of the company directors to a physical fight.

Janarthen was initially employed there as an administration staff. He later became a quality assistant before resigning on April 20, 2018.

He recommenced employment as a quality assistant in July 2019 before being terminated in March 2022.

Law firm R Thayalan represented Janarthen while the company was represented by one of the directors.

The Industrial Court heard the case between October last year and February this year.

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