Jupmi @ Jupini Bin Siding & 976 Others vs Sabah Forest Industries (MJLR 2009b8) David Wong,17/7/2009,SS

[K16-01-2009-I]

Jurisdiction:

MALAYSIA

IN THE HIGH COURT IN SABAH & SARAWAK

AT KOTA KINABALU

Parties:

Appellant: Jupmi @ Jupini Bin Siding

& 976 Others

Respondent: Sabah Forest Industries Sdn. Bhd.

File Number:

K16-01- 2009-I

Issues:

Whether the Labour Officer was correct in declining

jurisdiction to hear the complaints of the Appellants?

What is the legal effect of sec 132 of Labour

Ordinance?

Hearing Dates:

24 June 2009

Date of Decision:

17 July 2009

Judge:

HONOURABLE JUSTICE DAVID WONG DAK

WAH

Representation:

For Appellants: Rakhbir Singh with Christina Liew

Messrs. C J Liew & Co.

Kota Kinabalu, Sabah

For Respondent: Norbett Yapp with Celestina Stuel

Galid

Messrs. Jayasuriya Kah & Co.

Kota Kinabalu, Sabah

[K16-01-2009-I]

2

GROUNDS OF DECISION

This is an appeal against the decision of the Deputy Director of Labour,

Sabah given on 15th April 2009 under Section 7A of the Labour Ordinance.

The decision stems from complaints lodged by the Appellants 5 against the

Respondent to the Deputy Director over arrears of salary payments due to

them by reason of the salary increments of the period commencing from

1996 to 2007.

10 The Deputy Director dismissed the complaints on the ground that he had no

jurisdiction to hear them which related to matters arising prior to 2nd October

2005. His ground is premised on Section 7A of the Ordinance which came

into force on 2nd October 2005 by virtue of the Labour Ordinance Sabah

(Amendment) Act 2005 (“Act A 1238) and confers power to the Deputy

15 Director to adjudicate the employees’ complaints. The Deputy Director was

of the view that Section 7A does not give him power to entertain Appellants’

complaints which had accrued from 1996 (which is prior to the date Section

7A takes effect) unless those complaints were lodged within six months from

2nd October 2005 as provided for in Section 132 of the Labour Ordinance.

20 The only issue thus before me is this:

“What is correct interpretation of section 132 of the Ordinance?”

[K16-01-2009-I]

3

Section 132 reads as follows:

“Any contract of service lawfully entered into between any employer and any

employee and any license issued under section 118 valid and in force before the

date of coming into force of this Ordinance shall, if it is still legally binding upon

the parties, continue to be in force after such date and, subject 5 to the express

provisions contained in such contract or license, the parties thereto shall be

subject and entitled to the benefit of the provisions of this Ordinance within six

months from the date of coming into operation of this section”

10 It is the contention of the Respondent’s counsel that the word ‘Ordinance’ in

Section 132 refers to Act 1238 which came into effect on 2nd October 2004

and not the Ordinance itself which came into effect on 1955. In interpreting

any statute the court is duty bound to look at the words used in the

provisions and give them their natural meaning unless of course there exists

15 ambiguity or its literal interpretation leads to absurdity. So the question

which I need to ask myself is whether there is any ambiguity in Section 132.

In my view there is not. It must be remembered that the Ordinance was

never repealed and what Act 1238 did was to amend the Ordinance by

inserting a new Chapter 11A. In another words, the Ordinance as it was

20 originally enacted remains intact save for the amendment made by Act 1238.

This being the case I concur with counsel for the Appellants who submits

that Section 132 deals with contracts entered into before this Ordinance

which came into effect in 1955 and claims under those contracts must be

[K16-01-2009-I]

4

made within six months from 2nd October 2004. The Appellants’ contracts

are not those contracts; hence section 132 does not apply in the present case.

Furthermore established practice of statutory interpretation insists that

whenever existing statutory rights are being detrimentally 5 affected by new

legislation unambiguous language must be employed by Parliament to take

away those rights. No such words are found in Section 132.

As for the Deputy Director’s ruling on the application of the Limitation

10 Ordinance to the Appellants’ claims, I am not quite sure why he bothered to

deliberate on the issue as he had ruled that he had no jurisdiction to consider

the Appellants’ claims. In the circumstances I find that this ruling is of no

consequence and hence making it unnecessary for me to express my view on

the merit of the Deputy Director’s ruling.

15

For reasons stated above I allow this appeal with costs to be taxed to the

Appellants. Accordingly I direct the Deputy Director to exercise the power

given to him in Section 7A of the Ordinance.

20 (Y.A TUAN DAVID WONG DAK WAH)

Judge

Notice: This copy of the Court's Reasons for Judgment is subject to

formal revision.