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

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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.
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Deciphering Prenuptial Agreements in Malaysia: What You Need to Know

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