High Court rules payroll agent not liable in wrongful dismissal claim
Justice Alice Loke rules the company merely acted as a local payroll agent and had no supervisory or disciplinary authority.
The Kuala Lumpur High Court has ruled that a local recruitment agency, Great Pyramid Sdn Bhd, is not liable for wrongful dismissal in a case involving a woman named Chin Siang Tean. Justice Alice Loke dismissed Chin's claim, affirming a previous decision by the Industrial Court. The court found that Great Pyramid was merely a payroll agent for GenScript Biotech Pte Ltd, a Singapore-based company, and had no supervisory or disciplinary authority over Chin's employment.
Chin had initially received job offers from both GenScript and Great Pyramid, and signed an employment contract with Great Pyramid, but worked under GenScript's directive. Despite signing a contract with Great Pyramid, Chin's lawsuit alleged that no terms in the agreement specified that Great Pyramid was only a payroll vendor. The recruitment firm contended that GenScript was the true employer and that all work scope, benefits, and termination decisions were under GenScript's control.
Great Pyramid appealed the decision, requesting a one-month window to file a notice of appeal to the Court of Appeal.
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- High Court rules payroll agent not liable in wrongful dismissal claim freemalaysiatoday.com
