Jul 5 2024, 03:28 PM, updated 2y ago
Taylor’s U wrong to lay off academic staff based on high salaries, says court
https://www.freemalaysiatoday.com/category/...ies-says-court/
PETALING JAYA: A decision by Taylor’s University to declare two associate professors surplus to requirements five years ago based on their five-figure salaries was unfair, discriminatory and biased, the Industrial Court has ruled.
In awarding Tam Shey May and Wong Ching Lee a combined total of RM533,222, court chairman Eswary Maree said the criteria used by the university to select staff for retrenchment should be consistent with its existing employment policies and practices.
“These criteria should not be arbitrary but should align with the formal policies of the organisation.
“Surely, the company in the present case does not have a policy that includes targeting employees for retrenchment or victimising them merely because of their higher salaries,” she said in an award handed down on June 27.
Eswary noted the two claimants were the highest earners in the health and medical sciences faculty’s Bachelor of Biotechnology programme, which had 10 academic staff in total.
Borrowing words from fellow chairman Andersen Ong in a different award, she said the practice was akin to saying that “a tree that grows too fast is (to be) cut down first”.
“Such an action is grossly unjust and inequitable because the high salaries were granted by the (university’s) own decision,” she said.
Eswary also said such a practice disproportionately affects employees who have dedicated more time and effort to their employment.
She said these individuals may have acquired valuable skills and experience over the years, and contributed significantly to the university’s success.
“As such, targeting them based solely on their salaries overlooks their contributions and may undervalue their loyalty and dedication.
“Furthermore, it could perpetuate age discrimination, as older employees tend to have higher salaries due to their tenure and experience,” the award read.
Tam joined the university as a lecturer in 2012, and rose to the rank of associate professor. She drew a monthly salary of RM13,372, before being retrenched on Dec 31, 2019, purportedly on grounds of redundancy.
Although she signed off on her redundancy letter, Tam said she also sought justification for her dismissal in three appeal letters.
She said there was no basis for her redundancy as both the faculty and its school of biosciences were still in operation. She said she was also given several promotions and held additional responsibilities throughout her employment.
Tam also challenged her termination from employment, saying she was still teaching, doing research and carrying out her administrative and service functions at the time she received her redundancy notice.
Wong, joined Taylor’s in 2011 and was promoted to associate professor, drawing a salary of RM14,400 a month. She was retrenched, purportedly on grounds of redundancy, in 2019.
She too disputed her alleged redundancy, saying her duties continued to exist and were taken over by others.
Wong said the decision to dismiss her was arbitrary, capricious, selective and contrary to all notions of equity and good conscience and amounted to an unfair labour practice.
In its defence, Taylor’s said the three schools in the faculty were suffering financial losses, with the school of biosciences most badly hit, mainly due to the rising costs and lower enrolment.
“This school has been experiencing losses since 2014, which increased exponentially until 2019. Within this school, the Bachelor of Biotechnology programme was the least profitable mainly due to the stagnant student population and high-cost expenditure incurred,” Taylor’s claimed.
Taylor’s said prompt action had to be taken as the performance of the bachelor of biotechnology programme affects the school of biosciences and ultimately the university itself.
“The (faculty) decided that it could no longer sustain employees with a very high salary due to the financial position of the school and the programme itself,” it said.
Taylor’s said the cost savings from terminating higher-earning academic staff would be able to reduce cost more significantly, leading to fewer staff being released.
Eswary ruled that on the totality of the evidence, the terminations of Tam and Wong from employment were without just cause or excuse. She said Taylor’s had failed to prove on a balance of probabilities that the retrenchments had been done in good faith.
“The selection of the claimants for retrenchment due to redundancy cannot be viewed as showing fair labour practices,” she said.
Eswary did not award the claimants compensation in lieu of reinstatement as Tam had received RM104,970 and Lee RM127,296 in the form of retrenchment benefits, paid at the rate of one month’s salary for each year of service.
She, however, ordered Taylor’s to pay Tam back wages of RM256,742, equivalent to 24 months’ salary but subject to a 20% deduction for post-dismissal earnings.
Wong was awarded RM276,480 on the same basis.
The claimants were represented by VK Raj, while Dharmen Sivalingam and Leenalochana Malaipan appeared for the university.
Taylor’s Uni wrong to lay off academic staff, based on high salaries, says court
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