No unfair dismissal as HR manager’s fixed-term contract expired, court finds

The Industrial Court has dismissed a former human resources manager’s claim of unfair dismissal against technology consulting firm VDart Malaysia Sdn Bhd, ruling that her employment ended when her fixed-term contract expired.

Industrial Court chairman Augustine Anthony said D Elizebeth had failed to establish that the company promised to make her a permanent employee, or that she was dismissed without just cause or excuse.

Elizebeth joined VDart in September 2023 as its human resources and administration manager on a one-year contract, earning RM7,300 a month. Her salary was increased to RM7,500 upon confirmation.

As the contract neared its expiry in September 2024, she sought clarification about her future with the company. VDart subsequently offered her a three-month extension until Dec 13, 2024, which she accepted and signed.

The company declined to renew her contract when the extension expired.

Elizebeth claimed she had been assured of permanent employment and that the company had asked her to prepare a letter of appointment reflecting her new status.

She argued that the fixed-term arrangement was merely a disguise for permanent employment and sought reinstatement, back wages and other benefits.

However, Anthony found that the documentary evidence did not support her claim that permanent employment had been promised.

He noted that her emails acknowledged the expiry of the original one-year contract and the subsequent three-month extension.

She had also accepted the extension despite the company rejecting her request for a salary increase.

“The claimant’s testimony that she had a legitimate expectation to be employed as a permanent employee is without any merit,” he said in his 28-page award.

Anthony said VDart’s status as a start-up and its project-based operations also supported its decision to employ her on a fixed-term basis.

He concluded that the contracts were fixed-term arrangements and that the final extension had ended naturally through the passage of time.

“The claimant’s contracts of employment for a specific duration of time were genuine fixed-term contracts of employment,” he ruled.

As there had been no dismissal, the question of whether it was without just cause or excuse did not arise. The claim was therefore dismissed.

Dashprit Kaur appeared for Elizebeth while Timothy Dass represented the company.

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