Losing a job is never easy—especially when it’s done unfairly. But in some cases, justice has a way of catching up, even years later.
A former HR manager has successfully secured RM177,600 in back wages after the Court of Appeal found her termination eight years ago was not truly voluntary.
Court says ‘mutual agreement’ was not mutual after all
Fatimah Noordin, who worked as a section manager at Carsem Sdn Bhd since 2013, was presented with a letter on 20 April 2017 stating that her employment would end under a mutual separation agreement.
Alongside the termination, she was promised a severance package of RM50,000.
However, not only was the severance package never paid, but the company also filed a civil suit against her, alleging she made secret profits.
According to FMT, Fatimah responded with a counterclaim, asserting she did not commit any wrongdoing and claimed the police report lodged against her was false and malicious.
Court finds coercion in termination
Justice Wong Kian Kheong, delivering the unanimous judgment, stated clearly in the 42-page decision:
She was not given a reasonable time to consider the contents of the agreement or get legal advice regarding the effect of the agreement.”
He further added that it was more probable the company had coerced Fatimah into signing the agreement, rather than it being a mutual decision.
The court concluded that employers must not use agreements, arrangements or other euphemisms to mask unlawful dismissals.
Outcome of the appeal
Fatimah was awarded RM177,600 in back wages, with an additional RM20,000 in legal costs.
The court did not order her reinstatement as she had already reached the mandatory retirement age of 60.
Meanwhile, her appeal against the sessions court’s ruling—which had previously ordered her to pay RM300,000 in damages to the company—is still pending in the High Court.
Fatimah was represented by lawyers S Raam Kumar and Norleena Jamal, while the company was represented by counsel T Thavalingam and Tan Yang Qian.
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