DIPLOMA IN PUBLIC ADMINISTRATION

FACULTY OF ADMINISTRATIVE SCIENCE & POLICY STUDIES

UNIVERSITI TEKNOLOGI MARA, MACHANG CAMPUS, KELANTAN

GROUP ASSIGNMENT
PAD363
PRINCIPLES OF INDUSTRIAL RELATIONS

ASSIGNMENT TOPIC:
MAIN FUNCTION OF INDUSTRIAL COURT

PREPARED FOR:
NOR RAIHANA ASMAR MOHD NOOR

DATE OF SUBMISSION:
14 JUNE 2020

PREPARED BY:
NO. NAME UiTM NO. GROUP
1. NUR IZZATI BINTI MOHD ASRI 2017163885 5B

2. NUR SYAFINAZ FAMILLIA BINTI 2017378195 5B

MAHAMAD ROSLI

3. NIK NURUL EMILYANA BINTI NIK 2017366463 5B

NASHARUDDIN

4. NURUL AQILAH BINTI HAMZANI 2017261018 5RA

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Table of Contents
1.0 SUMMARY....................................................................................................................3
2.0 INTRODUCTION...........................................................................................................4
3.0 INDUSTRIAL COURT..................................................................................................5
4.0 EXAMPLE OF CASES..................................................................................................5
5.0 FUNCTIONS OF INDUSTRIAL COURT.....................................................................6
5.1 TO HEAR AND DOWN.............................................................................................6
5.2 TO GRAND COGNISANCE TO THE COLLECTIVE AGREEMENT...................7
5.3 UPHOLD SOCIAL JUSTICE.....................................................................................9
5.4 CREATING A HARMONIOUS INDUSTRIAL ENVIRONMENT........................10
6.0 TYPES OF CASES HEARD........................................................................................11
6.1 BY THE HONOURBLE MINISTER OF HUMAN RESOURSES.........................11
6.2 DIRECT APPLICATIONS TO THE INDUSTRIAL COURT.................................12
7.0 CONCLUSION..................................................................................................................14
8.0 REFERENCES...................................................................................................................15

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1.0 SUMMARY

In this report will tell about the function main function of

Industrial Court. The function of Industrial Court is to hear and down,
to grand cognisance to the collective agreement, to uphold social
justice and creating a harmonious industrial environment. For the first
function to hear and down is to decide and hand down awards relating
to trade disputes referred to it directly by employers and trade union of
workmen or by the Minister. Furthermore, the second function to grand
cognisance to the collective agreement which is the Industrial Court
have power in relation to a trade dispute referred to it or in relation to
a reference to it and the collective agreement also known as Award.
Moreover, the third function to uphold social justice. The Industrial
Court is motivated by social justice, but this means justice to both the
employee and the employer. Which is the topics of social justice in the
workplace, whether they're issues of race, gender or sexual orientation
or the complex geopolitical climate. And for the fourth function
creating a harmonious industrial environment. The industrial court will
create a harmonious environment by solving the cases that related to
issues in the industry. Besides that, there two type of cases heard in
industrial court which is by the honourable Minister of Human
Resources and by direct applications to the industrial court. By the
Honourable Minister of Human Resources can referred in Section 20(3)
Industrial Relations Act 1967 (Dismissal) Section 26(1) Industrial
Relations Act 1967 (Trade Dispute) Section 26(2) Industrial Relations
Act 1967 (Trade Dispute) Section 8(2A) Industrial Relations Act 1967
(Victimisation). While by direct applications to the industrial court can
referred in Section 56(1) Industrial Relations Act 1967 (Non
Compliance of Award/Collective Agreement) Section 33(1) Industrial
Relations Act 1967 (Interpretation of Award/ Collective Agreement)
Section 33(A) Industrial Relations Act 1967 (Points of law) iv)  Section
33(2) Industrial Relations Act 1967 (Variation of Award/Collective
Agreement).

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2.0 INTRODUCTION

Industrial Court generally handles cases that related to employee

dismissal case. A president and two panels that volunteer two parties
which are the employer and employee side, are the members in the
court. The members are elected by the Ministry of Human Resources.

The process to solve the cases will be through 4 stages. First, carry
out direct negotiations between the workers and employers. Second,
conduct negotiations with the Corporate Relations Department. Third,
refer the case to the Minister of Human Resources. Lastly, the trial
case referred in the Industrial Court.

The Industrial Court can be divided into two sections. The first
section of the court will handle the cases related to employee dismissal
case in private sector, disputes over the terms of services and cases
that were directed by the president. The second section of the court
handle the cases that related to disputes over interpretations, variations
and non-compliance of decision or collective agreements, cases that
have the legal question that need to refer to the high court and cases
that related to writ of certiorari.

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3.0 INDUSTRIAL COURT

Industrial court consists of a President of the Court that was

appointed by Yang Di-Pertuan Agong. It must be legally qualified at
least seven years standing in professional practices. Next, 6 members
experienced as representatives of employers and 6 members experienced
as representatives of workers. In addition, all members of the Court are
appointed by the Department for Employment and Learning after
consulting the Labour Relation Agency.

4.0 EXAMPLE OF CASES

Hotel Equatorial (M) Sdn Bhd v. National Union of Hotel, Bar and
Restaurant Workers [1984] 1 MLJ 363

The industrial court had made an award binding the parties. The
hotel applied for the question of law to be referred to the high court
and this was dismissed by the industrial court. Then, the hotel took the
matter to the high court where the high court allowed the application on
certain questions but dismissed one of them. The federal court heard
the appeal in respect of that dismissal had decided that to quashed the
decision of the industrial court on the grounds that the industrial court
had wrongly dismissed the application and acted in excess of
jurisdiction when adjudicated with a question that it has no power to do
so. The federal court had made an order of mandamus directing it to
hear and determine the issues in accordance with Section 33A(1).

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Securicor Malaysia Sdn Bhd v. Mohd Lazi bin Katan [1989] 3 MLJ
243.

The respondent was dismissed for misconduct. He claimed under

Section 69(1) of the Employment Act 1955 for several wages. A labor
officer conducted an inquiry and then made an order for the appellant
to pay sum of money to the respondent in compliance with an award of
the Industrial Court. The High Court in regards to this matter had
decided the labor officer has no jurisdiction to determine a claim where
it involved the interpretation or compliance with an award or collective
agreement.

5.0 FUNCTIONS OF INDUSTRIAL COURT

5.1 TO HEAR AND DOWN

The Industrial Court is a tribunal whose main functions

are to hear, decide and hand down awards relating to trade
disputes referred to it directly by employers and trade union
of workmen or by the Minister. It shall be the duty of an
industrial court to which any dispute, application or question
or other matter is referred or made under this Act, as soon as
may be, to make all such inquiries and hear all such evidence,
as it may consider necessary, and thereafter to take such
decision or make such award as may appear to the court just
and equitable. Subject to such regulations as may be made
under section 39 (1)(f) of this Act in respect of procedure, an
industrial court conducting an inquiry under this Part may lay
down the procedure to be observed by such court in the
conduct of the inquiry. Where an industrial court consists of
more than one person, the opinion on any matter of the
majority of the members of the court shall prevail and shall be
deemed to be the decision of the court on that matter.

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5.2 TO GRAND COGNISANCE TO THE COLLECTIVE
AGREEMENT

A collective agreement which has been taken cognizance

of the Industrial Court shall be deemed as the award of the
Court. The Industrial Court have power in relation to a trade
dispute referred to it or in relation to a reference to it under
subsection 20(3), to make an award (including an interim
award) relating to all or any of the issues. (2) Where the Court
is not unanimous (agreed with and supported by everybody) on
any question or matter to be determined, a decision shall be
taken by a majority of members and, if there is no majority
decision, by the President or Chairman. (3) The Court shall
make its award without delay and where practicable within
thirty days from the date of reference to it of the trade dispute
or of a reference to it under subsection 20(3). (4) In making
its award in respect of a trade dispute, the Court shall have
regard to the public interest, the financial implications and the
effect of the award on the economy of the country, and on the
industry concerned, and also to the probable effect in related
or similar industries. (5) The Court shall act according to
equity, good conscience and the substantial merits of the case
without regard to technicalities and legal form. (5a) In making
its award, the Court may take into consideration any
agreement or code relating to employment practices between
organizations representative of employers and workmen
respectively where such agreement or code has been approved
by the Minister. (6) In making its award, the Court shall not
be restricted to the specific relief claimed by the parties or to
the demands made by the parties in the course of the trade
dispute or in the matter of the reference to it under subsection
20(3) but may include in the award any matter or thing which
it thinks necessary or expedient for the purpose of settling the
trade dispute or the reference to it under subsection 20(3).

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(6a) Notwithstanding subsection (6), the Court in making an
award in relation to a reference to it under subsection 20(3)
shall take into consideration the factors specified in the
Second Schedule. (7) An award may specify the period during
which it shall continue in force, and may be retrospective to
such date as is specified in the award: Provided that the
retrospective date of the award may not, except in the case of
a decision of the Court under section 33 or an order of the
Court under paragraph 56(2)(c) or an award of the Court for
the reinstatement of a workman on a reference to it in respect
of the dismissal of a workman, be earlier than six months from
the date on which the dispute was referred to the Court. (8)
The award of the Court shall be signed by the President or the
Chairman of any Division or in the event of the President or
the Chairman for any reason being unable to sign the award by
the remaining members. (9) The Court may rectify in any
award any clerical error or mistake arising from any accidental
slip or omission. Base on the act, every collective agreement
must be taken cognizance by the Industrial Court. A signed
copy of the collective agreement must be jointly sent to the
Registrar of Industrial Court within one month from the date
on which the agreement has been concluded.

The Industrial Court has a discretionary power to:

i. refuse to accord it if in its opinion the agreement

does not comply with Sec.14, Section 16 (2)(a)
ii. Ask the parties to the agreement to amend any part of
the agreement (before it accord the agreement)
Section 16 (2)(b).
iii. Amend a collective agreement if it thinks necessary
and the amended agreement is considered as the
agreement that concluded by the parties to it. Section
16 (3).

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5.3 UPHOLD SOCIAL JUSTICE

The other function of Industrial Court is to uphold social

justice. The Industrial Court is motivated by social justice,
but this means justice to both the employee and the employer.
The topics of social justice in the workplace, whether they're
issues of race, gender or sexual orientation or the complex
geopolitical climate. Social justice issues often unfold at
lightning speed with a level of real-time transparency that can
have unnerving ripple effects on an individual’s psyche,
whether it directly impacts them or not. And by ignoring
social justice issues that their workforce is dealing with
outside of work can, in turn, affect productivity and morale in
work environment. This is the role of Industrial Court to solve
the problem and to uphold social justice. And there are also
situation of employer blatantly specifying their preferences
for certain race in job vacancies or job application such as
“Chinese only” and “Malay only”. Though many have argued
that these discriminatory practices violates the Federal
Constitution, cases on discrimination will fail if they involve
infringement of an individual legal right by another
individual/entity. According to Employment Act 1955, section
60L(1): provides that employees (local/foreign) may file a
complaint to the Director General on the grounds that he is
being discriminated against in relation to a foreign
employee/local employee (as the case may be) in respect of
the terms and conditions of his employment

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5.4 CREATING A HARMONIOUS INDUSTRIAL
ENVIRONMENT

By solving the cases that related to issues in the industry,

the industrial court will create a harmonious environment. As
we can see in the case, when there is a gender discrimination,
race discrimination and others in the industrial sector. The
industrial court comes out with the solution to make sure there
are no case whether employers discriminate their women staff.
According to Industrial Relations  Act 1967, section 5(1)(c):
provides that employers cannot discriminate  against any
person when it comes to employment, promotion, any
condition of employment or working conditions on the ground
that they are or are not a member or officer of a trade union.
When no more discriminating action made by the employers or
employees in the organizations itself, a harmonious
environment can be maintained. Other than that, there are also
law that recognized industrial disputes between employers and
employees. Section 2 in Industrial Relations Act 1967 stated
that, “trade dispute” means any dispute between an
employer and his workmen which is connected with the
employment or non-employment or the terms of employment or
the conditions of work of any such workmen. There are
number of methods to solve the disputes. Conciliation,
factfinding and arbitration are the main disputes resolutions.
Other methods that recognized by Industrial Relations Act are
direct negotiation, direct action, executive action,
administrative action and mediation.

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6.0 TYPES OF CASES HEARD

6.1 BY THE HONOURBLE MINISTER OF HUMAN

RESOURSES

i) Section 20 (3) Industrial Relation Act 1967

(Dismissal)

Under Section 20 of the Industrial Relations Act

1967, an employee who feels that he has been unfairly
dismissed without just cause or excuse by his
employer, may lodge a representation to the Director
General of Industrial Relations within 60 days from
the date of his termination. By lodging this
representation, the employee is seeking for
reinstatement to his former employment with the
employer.

ii) Section 26(1) Industrial Relations Act 1967 ( Trade

Dispute)

Where a trade dispute exists or is apprehended,

the Minister may, if that dispute is not otherwise
resolved, refer the dispute to the Court on the joint
request in writing to the Minister by the trade union
of workmen which is a party to the dispute and the
employer who is a party to the dispute or a trade union
of employers which is a party to the dispute.

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 iii) Section 26(2) Industrial Relations Act 1967 (Trade
Dispute)

The Minister may of his own motion or upon

receiving the notification of the Director General
under subsection 18(5) refer any trade dispute to the
Court if he is satisfied that it is expedient so to do
Provided that in the case of a trade dispute in any
Government service or in the service of any statutory
authority, reference shall not be made except with the
consent of the Yang di-Pertuan Agong or State
Authority as the case may require.

iv) Section 8(2A) Industrial Relation (Victimization)

Upon receipt of a notification under subsection

(2), the Minister may, if he thinks fit, refer the
complaint to the Court for hearing.

6.2 DIRECT APPLICATIONS TO THE INDUSTRIAL COURT

i) Section 56(1) Industrial Relations Act 1967 (Non-

compliance of Award/collective agreement)

Any complaint that any term of any award or of

any collective agreement which has been taken
cognizance of by the Court has not been complied with
may be lodged with the Court in writing by any trade
union or person bound by such award or agreement.

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ii) Section 33(1) Industrial Relation Act 1967
(Interpretation) of award/collective agreement)

If any question arises as to the interpretation of

any award or collective agreement taken cognizance of
by the Court, the Minister may refer the question, or
any party bound by the award or agreement may apply,
to the Court for a decision on the question.

iii) Section 33(A) Industrial Act 1967 (point of view)

Where the Court has made an award under

subsection 30(1) it may, in its discretion, on the
application of any party to the proceedings in which
the award was made, refer to the High Court a
question of law which is the first question is.
Secondly, which arose in the course of the
proceedings, the determination of which by the Court
has affected the Award which, in the opinion of the
Court, is of sufficient Importance to merit such
reference and the determination of which by the Court
raises, in the opinion of the Court, sufficient doubt to
merit such reference.

iv) Section 33(2) Industrial Relations Act 1967 (variation

of award/ Collective Agreement

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 The Court may, upon the application of any
party, by order vary any of the terms of an award or
agreement if it considers it desirable so to do for the
purpose solely of removing ambiguity or uncertainty

7.0 CONCLUSION

As a conclusion, The Industrial Court is a Tribunal Non-

Departmental Public Body with statutory powers. It provided for a
voluntary system of arbitration of trade disputes. Any trade dispute
which is not resolved through conciliation may be referred to the
Industrial Court by the Honourable Minister of Human Resources.
Industrial court also responsible to adjudicate on applications relating
to statutory recognition and derecognition of trade unions for collective
bargaining purposes, where such recognition or derecognition cannot be
agreed voluntarily. It also has a statutory power in relation to
determining disputes between trade unions and employers over the
disclosure of information for collective bargaining purposes. In
addition, it has responsibility for dealing with complaints under a range
of legislation. Which provide employees with information and
consultation.

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8.0 REFERENCES

Faraain, M. &. (2019). Exploring Workplace Injustice and Employees' Well-being in

Malaysia. International Journal of Accounting, Finance and Business, 76-91.

Fauzi, I. (11 February, 2013). Industrial Court of Malaysia ( court case ). Retrieved from
http://industrycourtcase.blogspot.com/2013/02/the-role-functions-and-powers-of.html

Malaysia, I. C. (6 June, 2020). About Us: The Official Website of Industrial Court of
Malaysia. Retrieved from The Official Website of Industrial Court of Malaysia:
http://www.mp.gov.my/en/about-us/objective

Malaysia, L. O. (2015). Industrial Relations Act 1967. Putrajaya.

Manusia, J. P. (2013). Pertikaian Perusahaan Penyelesaian. In J. P. Manusia, Pertikaian

Perusahaan Penyelesaian (pp. 11-13). Putrajaya: Bahagian Perancangan dan
Penyelidikan Dasar Jabatan Perhubungan Perusahaan Malaysia.

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