What Wong Chee Hong Means For You
The case that set the test for when a forced resignation counts as dismissal.
What the case decided
Wong Chee Hong v Cathay Organisation (M) Sdn Bhd is the foundation of constructive dismissal law in Malaysia.
The Supreme Court decided it in 1988, reported in the Malayan Law Journal (MLJ) at [1988] 1 MLJ 92.
It adopted what is now called the contract test, borrowed from the English case Western Excavating v Sharp.
A worker may treat themselves as dismissed where the employer commits a breach going to the root of the contract.1
The same applies where the employer shows a clear intention no longer to be bound by the contract.
What the principle means plainly
The key word is fundamental: the breach must go to a core term of your contract.
A pay cut imposed without your agreement can meet this bar. So can a demotion in all but title, or a unilateral change to your core duties.
Rudeness or a difficult manager usually does not meet it, because neither changes a core term of your contract.
What it means for a worker
If you are considering forced resignation, this case is the test your situation will be measured against.
Identify the specific term that was broken, then show the breach was serious, not just unpleasant.
Keep every document that shows the change, such as a letter, an email or a payslip. Write down what changed, the date it changed and what you were told about why.
The Industrial Court will look closely at what actually changed and when.
Where this fits in a claim
This case sits at the start of a constructive dismissal claim. It comes before the four conditions from Anwar Abdul Rahim v Bayer are considered.
Your outcome depends on your own facts, and no result is promised.
The 60-day window under Section 20 still applies, so check the deadline calculator early.
If you resigned because of how your employer treated you and are thinking of a claim, an independent employment lawyer can test your facts against this case. They can act on it if it holds up.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
What did Wong Chee Hong v Cathay actually decide?
The Supreme Court adopted the contract test for constructive dismissal in Malaysia. A worker may treat the employment contract as ended only where the employer commits a breach going to the root of the contract, not merely unreasonable conduct.
Does this case mean any unfair treatment counts as dismissal?
No, the court was clear that unreasonable conduct alone is not enough. The breach has to strike at a core term of the contract, such as pay, position or a fundamental duty the employer owes you.
How is this case used in a claim today?
It remains the starting authority for constructive dismissal claims, including forced resignation. It sets the legal test the Industrial Court applies to your facts.
Sources
- The Supreme Court adopted the contract test: a worker may treat the contract as ended if the employer commits a breach going to the root of the contract. Thomas Philip Advocates & Solicitors
Keep reading
If you resigned because of how your employer treated you and are thinking of a claim, an independent employment lawyer can test your facts against this case. They can act on it if it holds up.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.