Posts

Mutual Separation Scheme (MSS) vs Voluntary Separation Scheme (VSS)

Image
In the case of B. Braun Medical Industries Sdn Bhd v Mugunthan a/l Vadiveloo , the Court of Appeal clarified several key points regarding mutual separation schemes (MSS) versus voluntary separation schemes (VSS): 1. Unfair dismissal can occur if an employee is coerced into signing an MSS under the threat of redundancy and retrenchment. 2. The burden of proof lies with the employee to demonstrate coercion or force in signing the MSS. The employer is not required to prove that the agreement was voluntary. 3. Courts assess the conduct and correspondence between the parties to determine if the employee was indeed coerced. Factors considered include negotiation dynamics, lack of objection, and any admissions by the employee regarding the voluntariness of their resignation. 4. Failure to substantiate coercion typically results in dismissal of the unfair dismissal claim solely on this ground.

Whether legal fee is a species of special damages and thus claimable over and on top of costs in a legal proceeding?

Image
In the recent case of Golden Star & Ors v Ling Peek Hoe & Anor and another appeal [2024] MLJU 909, the Federal Court held as follows:- (i) The court agrees with the appellants that respondents cannot claim legal charges, fees, or costs as special damages in the same proceedings between the same parties, based on principles, policy, and social policy. (ii) The court answers both questions in favor of the appellants, stating that costs, including legal costs, are distinct from damages and cannot be recovered as special damages in the same proceedings between the same parties. (iii) The appeals are allowed, and the decisions of the Court of Appeal and the High Court awarding legal fees as part of special damages are set aside. The specific amount of RM2,604,000.00 is set aside, while other orders of the High Court are maintained.

Employers: How to avoid constructive dismissal

Image
  🌟 Attention, Employers in Malaysia! 🌟 Are you aware of the potential risks of constructive dismissal claims from your employees? 🚨 Don't fret, let's delve into what you need to know to safeguard your company and foster a positive work environment. 🛡️ 🔍 Understanding Constructive Dismissal: Constructive dismissal occurs when an employee resigns due to a breach of their employment contract by the employer. This breach can be a fundamental change in working conditions or a hostile work environment that makes continued employment intolerable. 🛡️ How to Avoid Constructive Dismissal Claims: Transparent Communication: Maintain open lines of communication with your employees to address any concerns or grievances promptly. Transparency builds trust and prevents misunderstandings. Fair Policies and Procedures: Implement fair and consistent policies and procedures that comply with Malaysian labor laws. Ensure that disciplinary actions are carried out fairly and equitably. Respect

The Importance of Formal Agreements When Buying or Selling a Business in Malaysia

Image
In Malaysia's business sector, opportunities abound for entrepreneurs looking to buy or sell businesses. However, amidst the excitement of such transactions, it's crucial not to overlook the importance of formal agreements.  Recently, while visiting a newly opened cafe owned by a family member, I had an interesting encounter with another cafe owner occupying the first floor of the same building. Both cafes shared a common history: they were previously operated by an individual who had since sold his business to these new cafe owners. However, as I soon discovered, this seemingly straightforward arrangement was far from smooth sailing. The new owner of the cafe upstairs approached me during my visit to complain about the condition of the equipment, which she claimed were in a state of disrepair and not functioning properly. This raised concerns, considering that the selling price of the business included the assets and equipment. Sensing her frustration and recognizing the poten

Deciphering Prenuptial Agreements in Malaysia: What You Need to Know

Image
  In Malaysia, figuring out whether prenuptial agreements (prenups) hold water can be a bit like navigating a maze. Unlike some places where prenups are a sure thing, Malaysia requires a more careful look. Section 47 of the Law Reform (Marriage and Divorce) Act (LRA) throws a curveball, saying we can borrow ideas from English law if it fits with our rules. So, why look to English law? Well, until Malaysian courts spell it out, English cases can be a guide. We argue that prenups could be enforced in Malaysia, as long as the terms doesn't contravene provisions in the  LRA. But here's the twist: In Malaysia, prenups don't get a clear thumbs-up or thumbs-down . It's a bit like going to court and hoping they see things your way. The court decides if the prenup is fair and sensible, weighing in on how the couple acted when making the agreement. Section 56 of the LRA —a game-changer. This section lets couples show the court their prenup during divorce proceedings. The court th

Selling your business? Do you need a lawyer?

Image
  Why the Sale and Purchase Agreement is Crucial in Malaysia's Business Landscape In the realm of Malaysian business, crafting a sale and purchase agreement is a pivotal step that should not be overlooked. There are several key advantages, especially when involving lawyers in the drafting process. Legal Safeguard: The sale and purchase agreement establishes a robust legal foundation for both parties. Involving lawyers ensures the formulation adheres to Malaysia's business regulations, providing a legal safeguard that aligns with the law. Detailed Definitions: Lawyers aid in formulating the agreement with clear and detailed definitions of crucial aspects such as transferred assets, sale price, and payment terms. This prevents any ambiguity that could lead to disputes in the future. Protection of Interests: A well-crafted agreement considers not only the seller's interests but also those of the buyer. Lawyers can ensure that the rights and responsibilities of both parties

Willing Properties for Charity in Malaysia: Making a Difference through Generosity

Image
  Introduction: In recent years, the act of donating properties for charitable purposes has gained significant attention in Malaysia. This selfless act not only helps the less fortunate but also provides a way for individuals to leave a lasting legacy.  In this article, we will explore the concept of willing properties for charity in Malaysia and how it can make a positive impact on society. 1. Understanding the Concept of Willing Properties for Charity: Willing properties for charity involves the donation of real estate assets to charitable organizations or foundations. This act allows individuals to contribute to a cause they are passionate about while ensuring that their properties are put to good use even after their lifetime. It is a powerful way to make a lasting impact and create a positive change in society. 2. The Benefits of Donating Properties for Charity: 2.1 Tax Incentives: The Malaysian government provides tax incentives for individuals who donate properties to registered