Chapter 10: The Industrial Court
Industrial court
The Industrial Court is a tribunal set up under the provisions of the Industrial Relation Act 1967 and embodies the principles of voluntary and compulsory arbitration
Jurisdiction of the Industrial court
The IC is not a court of jurisdiction and it does not possess inherent jurisdiction like the high court
It is a court of arbitration designed to carry out and implement objectives of IRA ie to provide for the regulation of relations between employer, workmen and their trade unions
The IC has jurisdiction to hear and settle complaints of unfair labor practices, representations alleging unfair dismissal and trade disputes
No extra territorial jurisdiction
The IC does not possess extra territorial jurisdiction because the IRA does not have any jurisdiction in respect of foreign employers or company not registered in Malaysia
Challenging the IC jurisdiction
The jurisdiction of the IC can only be questioned by challenging the Minister's reference
A party do a dispute who wishes to contend that the IC does not have jurisdiction to hear any inquiry must seek to quash the Minister's reference and in the same application ask for order of prohibition against the court
The IC perform the following functions
To arbitrate and to adjudicate in any trade dispute and dismissal case referred to it by the Minister under S26(1) &(2) and S20(3) respectively
To take cognisance of collective agreement jointly deposited by employer and trade union
To decide on matters concerning interpretation of, and non-compliance with, collective agreements or awards under S33(1) and S56(1) respectively
To draw up principles and guidelines in regard to social justice in employment and industrial relations matters through awards that are handed down
The IC cannot question the efficacy of management decision
The employer retain the right to manage his business in a way he deems fit
Powers of Industrial Court
Hear cases of dismissal
Summon parties concerned with a dispute and summon witnesses
Join, substitute or strike off a party to a dispute
Compel production of books, papers, documents, accounts atc.
Hear and determine on a dispute in the absence of either party
call in the aid of experts
Directly and do everything necessary or expedient to determine speedily the dispute referred to it
Power of industrial Court
S30(1) of IRA, the court shall have power in relation to a trade dispute referred to it under subsection 20(3), to make an award (including and interim award) relating to all or any of the issues
S30(6) of IRA, in making an award, the IC shall not be restricted to the special relief claimed by the parties or the demands made by the parties in the course of the dispute referred to it
S30(7) of IRA, the IC may be specify the period during which and award shall continue in force, and may be retrospective to such date as is specified in the award
Members of the industrial Court
Headed by the president who is appointed by Yang Dipertuan Agong from among judges of the High court
Chairmen are also appointed by Yand Dipertuan agong on the recommendations of the Minister of HR to preside over cases referred to the court
Both presidents and Chairmen must have at least 7 years standing in the legal profession
Panel members representing the employer and workmen respectively are appointed by the Minister of HR after consultations with the organizations representing employers and workmen, to assist in the court
The registrar of the IC is responsible to the Secretary general of Minister of HR and to the President
Only the President and the Chairmen have to be legally qualified persons
Composition of the Industrial Court
The IC consists of a President and 6 Chairmen who are in charge of a particular division
In dealing with a trade dispute, the President or a Chairman, and 1 representative from each of employers and workmen, selected by the President will preside over the matter (S22(1). In the absence of a unanimous decision, the decision of the dispute will be made by a majority of a members.
In dealing with representations for unfair dismissal, the IC will be constituted of the President and Chairman alone.
S27(1) of the IRA, in any proceedings before the IC, a party may
Where the party is a trade union, be represented by an officer or employee of the trade union
Where the party is an employer, appear himself personally or be represented by his duly authorised employee, or by an officer or employee of a trade union of employers
Where the party is a workmen, appear himself personally or where he is a member of a TU of workers, be represented by an officer or employee of the TU
Where the party is the trade union or an employer, or a workmen, be represented with the permission of the President or the Chairman, by an advocate or by an official of an organization of employers or of workmen, registered in Malaysia