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Book part
Publication date: 13 April 2015

Balakrishnan Muniapan

There are ten universal principles of United Nations Global Compact in four areas namely human rights, labour, environmental and anti-corruption, and this chapter will…

Abstract

Purpose

There are ten universal principles of United Nations Global Compact in four areas namely human rights, labour, environmental and anti-corruption, and this chapter will explore the sixth principle of labour standard on elimination of discrimination in employment and occupation, in particular the doctrine of constructive dismissal in Malaysian labour relations. Constructive dismissal is creating a new challenge in labour relation in Malaysia.

Methodology/approach

This chapter specifically analyses some of the constructive dismissal awards and its implication to labour relations in Malaysia. The methodology employed in this chapter is the analysis of case laws using criterion-based sampling from the Industrial and Superior Court awards on constructive dismissal.

Findings

There has been an increasing number of awards on constructive dismissal made by the Malaysian Industrial Court over the last nine years. From the year 2009–2013, the Industrial Court has made 663 awards on constructive dismissal, mostly against employers. With compensation awarded to each employee amounted to as much as 24 months of back-pay salary plus a month’s pay for every year of service, employers can no longer neglect this pressing issue.

Research limitations/implications

The concept of constructive dismissal falls within the purview of section 20 of the Industrial Relations Act 1967 in Malaysia. Constructive dismissal is a ‘deemed dismissal’ if an employer is guilty of a breach of the employment contract which goes to the root of the contract. It arises when a workman terminates his/her contract of employment and considers himself/herself discharged from further obligations because of the employer’s conduct.

Practical implications

With a good understanding of the constructive dismissal awards, it is expected that organizations will manage and treat their human resources as their greatest assets and prevent constructive dismissal claims from taking place. This will eventually help to improve and maintain harmonious labour relations. This chapter is likely to provide insights into the Malaysian labour relations environment for international business operations.

Originality/value

In the context of Malaysian labour relations, studies on constructive dismissal are limited as it is considered as a new area and a specific area of study. This chapter therefore hopes to fill the existing gap in the literature, to highlight some of the recent awards and lessons to prevent constructive dismissal claims from taking place and generally to contribute to the constructive dismissal literature.

Details

Beyond the UN Global Compact: Institutions and Regulations
Type: Book
ISBN: 978-1-78560-558-1

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Article
Publication date: 2 December 2020

Meshal Nayef Alharbi

Saudi Arabia recently amended the Labour Law provisions governing the unfair dismissal of employees in the private sector. The previous version of the legislation, which…

Abstract

Purpose

Saudi Arabia recently amended the Labour Law provisions governing the unfair dismissal of employees in the private sector. The previous version of the legislation, which had been in force for many years, had entitled employees to demand reinstatement or make a claim for fair financial compensation equal to the damages sustained. The recent amendments eliminated the right of a dismissed employee to seek reinstatement and also revised the rules relating to monetary compensation. The purpose of this paper is to critically analyse and evaluate the new approach, which has been criticized heavily. In addition, it suggests feasible alternative ways to handle unfair employee dismissal, which can be incorporated into the current Saudi Labour Law.

Design/methodology/approach

This paper presents an analysis of the existing approach to dealing with unfair employee termination in the Saudi Labour Law. It is based mainly on information collected from various legal materials, such as books, review of judgments issued by the Commission for the Settlement of Labour Disputes in Saudi Arabia and relevant Islamic rules.

Findings

The results of this examination clearly show that there are several flaws in the current approach to dealing with the issue of unfair dismissal of employees. To correct this situation, workable approaches have been suggested for possible consideration and incorporation into the Saudi Labour Law.

Originality/value

To the author’s knowledge, this is the first academic study to analyse the current approach to handling unfair employee dismissal in the Saudi Labour Law.

Details

International Journal of Law and Management, vol. 63 no. 4
Type: Research Article
ISSN: 1754-243X

Keywords

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Article
Publication date: 18 March 2020

Stefano Azzali and Tatiana Mazza

The purpose of this paper is to analyze the effects of financial restatements (FRs) on the likelihood of the top management team (TMT) dismissal. It investigates the…

Abstract

Purpose

The purpose of this paper is to analyze the effects of financial restatements (FRs) on the likelihood of the top management team (TMT) dismissal. It investigates the effects of types of FRs [corrective note and reissuance of financial statement (RFS)], of FR severity and of FR related to international financial reporting standards (IFRSs) easy or difficult-to-estimate.

Design/methodology/approach

The authors hand-collect: data about 96 FRs from the Italian public oversight board documents; chief executive officer (CEO) name, chairman name, year of the financial statement under investigation, total assets and operating income, from their financial statement. The authors use multivariate regression to test the effects of FRs on the probability of TMT dismissal.

Findings

The authors find that the RFS leads to a higher likelihood of chairman dismissal. A greater magnitude of misrepresentation on income statements, and FRs, which decrease net income, increase the likelihood of CEO dismissal. Difficult-to-estimate IFRSs increases the likelihood of CEO dismissal.

Originality/value

FRs are significant determinants of the CEO/chairman dismissal. The authors show that FRs directly involving shareholders (RFS) have negative consequences on the chairman of the board of directors, while the CEO is more affected by FRs that involve technical factors (FR severity or financial statement associated with difficult-to-estimate IFRSs).

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 3
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 1 February 1986

J.R. Carby‐Hall

Since their creation through the Industrial Training Act 1964 to hear appeals against levies, the jurisdiction of industrial tribunals has grown considerably. One aspect…

Abstract

Since their creation through the Industrial Training Act 1964 to hear appeals against levies, the jurisdiction of industrial tribunals has grown considerably. One aspect of this jurisdiction, unfair dismissal, is examined here. Basic principles related to the law of unfair dismissal are examined. The practice and procedure of an industrial tribunal solely in connection with unfair dismissal cases are examined in greater detail. A case study is used to illustrate the important aspects of procedure. Appendices give relevant forms and extracts from the appropriate Code of Practice.

Details

Managerial Law, vol. 28 no. 2
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 1 January 1979

In order to succeed in an action under the Equal Pay Act 1970, should the woman and the man be employed by the same employer on like work at the same time or would the…

Abstract

In order to succeed in an action under the Equal Pay Act 1970, should the woman and the man be employed by the same employer on like work at the same time or would the woman still be covered by the Act if she were employed on like work in succession to the man? This is the question which had to be solved in Macarthys Ltd v. Smith. Unfortunately it was not. Their Lordships interpreted the relevant section in different ways and since Article 119 of the Treaty of Rome was also subject to different interpretations, the case has been referred to the European Court of Justice.

Details

Managerial Law, vol. 22 no. 1
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 1 April 1986

J.R. Carby‐Hall

Phillips, J. has drawn the distinction between wrongful dismissal at common law and unfair dismissal under statute. He points out the considerable difference which exists…

Abstract

Phillips, J. has drawn the distinction between wrongful dismissal at common law and unfair dismissal under statute. He points out the considerable difference which exists between the position at common law and the position under statute. “The common law” he says “is concerned merely with the contractual relationship between the parties, whereas a complaint of unfair dismissal…is concerned with the statutory right of an employee not to be unfairly dismissed.” There thus exists a fundamental difference between the two concepts, both of which are in their different circumstances important. In this monograph, it is proposed to treat the common law of wrongful dismissal. Statutory unfair dismissal will be the subject of discussion in a future monograph.

Details

Managerial Law, vol. 28 no. 4
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 7 November 2016

Camille Signoretto

The purpose of this paper is to study the implementation of a new open-ended contract termination in 2008 in France, called the rupture conventionnelle (RC), which is a…

Abstract

Purpose

The purpose of this paper is to study the implementation of a new open-ended contract termination in 2008 in France, called the rupture conventionnelle (RC), which is a mutually agreed contract termination. More precisely, this paper analyses first the impact of the RC on the employers’ termination decisions (termination or not?). Then it seeks to provide empirical evidence of a substitution between the RC and other contract terminations (if there is termination, what types?).

Design/methodology/approach

The approach is first empirical. The author uses two matched firms’ data sets: one relating to the movement of employees and other from accounting data from 2006 to 2009. Using a propensity score matching method, the author creates two similar (from observable characteristics) firms’ groups – those that used RC in 2009 and those not. The author compares the evolution of the employment decisions between the two groups between 2008 and 2009 in order to identify the specific effect of the RC in the user firms.

Findings

The results indicate that the introduction of the RC tends to increase workforce exits and does lead to much more job destruction in the user firms, i.e. job destruction would have been weaker in the user firms if the RC had not been implemented. Substitutions with dismissals for personal reasons and for economic reasons also may have appeared, albeit weakly.

Originality/value

The RC seems an important measure to make the labour market more flexible, especially in France where EPL is often criticize for its rigidities. But few studies analyse the consequences of this new institutional rule on firms’ behaviour and with firms’ data set. Then this paper provides first some understanding and assessment of the economic effects of the RC.

Details

International Journal of Manpower, vol. 37 no. 8
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 June 1986

J.R. Carby‐Hall

The purpose of this monograph is to examine the various ways in which the contract of employment may be terminated at common law other than by the common law of wrongful…

Abstract

The purpose of this monograph is to examine the various ways in which the contract of employment may be terminated at common law other than by the common law of wrongful dismissal or statutory unfair dismissal and redundancy. Wrongful dismissal has already been discussed in another monograph and unfair dismissal and redundancy will feature in a subsequent one.

Details

Managerial Law, vol. 28 no. 6
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 1 February 1988

Jo Carby‐Hall

The original legislation which introduced the redundancy payments scheme was the Redundancy Payments Act 1965. This was the first of the substantive statutory individual…

Abstract

The original legislation which introduced the redundancy payments scheme was the Redundancy Payments Act 1965. This was the first of the substantive statutory individual employment rights given to an employee; other individual employment rights, as for example, the right not to be unfairly dismissed, followed some years later. The Redundancy Payments Act 1965 has been repealed and the provisions on redundancy are now to be found in the Employment Protection (Consolidation) Act 1978.

Details

Managerial Law, vol. 30 no. 2/3
Type: Research Article
ISSN: 0309-0558

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Article
Publication date: 16 November 2010

Tor Brodtkorb

The purpose of this paper is to expose practical and theoretical problems with the range of reasonable responses (RORR) test as applied in UK unfair dismissal law, and to…

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Abstract

Purpose

The purpose of this paper is to expose practical and theoretical problems with the range of reasonable responses (RORR) test as applied in UK unfair dismissal law, and to propose an alternative interpretation of the test that would resolve these problems.

Design/methodology/approach

Through a close analysis of the purpose and structure of UK unfair dismissal law, and a careful reading of the leading cases in the area, the paper questions whether the law as it is currently interpreted achieves the goals of the underlying legislation. The current interpretation of the law being found lacking, alternatives are considered and evaluated.

Findings

The RORR test, as delineated in the most recent Court of Appeal cases, holds that dismissals are fair unless they are based on a reason for which no reasonable employer would dismiss. This interpretation of the test is internally incoherent; moreover, it fails adequately to promote the goals of unfair dismissal law, which are to protect the dignity and autonomy of employees. An alternative and superior interpretation of the test would hold a dismissal to be outside the RORR if no rational theory of management would condone dismissal on the grounds given by the employer.

Social implications

The paper draws attention to fundamental incoherence in the current interpretation and application of unfair dismissal law, and suggests a new and better approach. If the new approach were accepted by the courts or by Parliament, it could lead to reform in unfair dismissal law.

Originality/value

The paper provides a detailed analysis of the RORR test, a long‐standing and well‐recognized problem in UK unfair dismissal law, and suggests a novel solution that would improve the coherence and function of unfair dismissal law.

Details

International Journal of Law and Management, vol. 52 no. 6
Type: Research Article
ISSN: 1754-243X

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