Cover image via Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
The Industrial Court has ordered the Malaysia Digital Economy Corporation (MDEC) to pay its former employee RM514,836 for constructive dismissal
According to the New Straits Times, Industrial Court chairperson Andersen Ong ruled that MDEC's actions had eroded mutual trust and confidence by undermining Adlin Shah Abdul Latiff's position, authority, and dignity, leaving him with no reasonable option but to resign.
Adlin joined the company in August 2008 under a fixed-term contract and was confirmed as a permanent employee in 2010.
By 2016, he was promoted to senior manager and later served in the Stakeholder and Government Relations Department.
His 15 years of service ended bitterly when he began facing sustained harassment, victimisation, and a series of actions designed to marginalise him.
In his judgment, Ong ruled that the introduction of a "flat reporting structure" had substantially reduced Adlin's managerial role.
Employees who were previously under his management were directed to report to his superior instead, effectively removing much of his managerial and supervisory responsibilities.
"By reason of the flat reporting structure, the claimant's managerial and supervisory functions were significantly diminished.
"He was no longer entrusted with managing, supervising, guiding or mentoring his former subordinates.
"The claimant was effectively deprived of a substantial part of the managerial responsibilities which formed the very essence of his position," the court said.
Ong also accepted Adlin's testimony that he had been excluded from meetings, departmental discussions, email threads, and WhatsApp groups involving matters under his purview
"In the absence of any evidence to the contrary, the court has no reason to reject the claimant's evidence on this issue and accepts that he had, on various occasions, been excluded from meetings and discussions relating to his work and responsibilities," the court said.
Adlin also claimed MDEC marked a mandatory one-to-one performance as completed despite it never being conducted with him.
"This was not merely a procedural omission but a false declaration in an official performance appraisal document," he said.
Another complaint involved his performance appraisal score, which was recalibrated from 2.30 to 2.94 following a company-wide exercise.
However, the court ruled that the adjustment did not resolve his concerns as it was only made after he had resigned.
In its defence, MDEC argued that the restructuring was a legitimate exercise of its management prerogative. The company also said it had investigated Adlin's complaints and offered him alternative positions.
However, Ong rejected the defence.
"The company has failed to provide any real or cogent justification for the change in the reporting structure to demonstrate that it was a bona fide exercise of management prerogative," he added.
MDEC was ordered to pay Adlin RM343,224 in back wages, representing 24 months of salary, along with RM171,612 in lieu of reinstatement.
