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IR in Crisis Mode: Real Stories of Costly Errors – and How They Could’ve Been Avoided

IR in Crisis Mode: Real Stories of Costly Errors – and How They Could’ve Been Avoided

True stories. Real consequences. Lessons learned.

Not every IR dispute make headlines – but they often originate in similar ways:

  • A hastily issued warning letter
  • A performance issue ignored
  • A termination based by instinct, rather than process

In this article, we’re sharing anonymised but real cases from our consultants – to highlight that even responsible employers can encounter trouble… and how it could have been avoided.

 

Case #1: “We Thought It Was Mutual”

A company offered a Mutual Separation Scheme (MSS) during a restructuring exercise. The employee initially accepted – but later claimed they had been coerced into signing,and filed for constructive dismissal.

Where the process failed:

  • No formal record confirming that the separation was voluntary
  • Absence of documentation proving the employee’s genuine resign intent

Outcome: The employer was compelled to compensate the employee, despite believing the exit was amicable.

 

Case #2: “Just Let Him Go”

A senior employee was dismissed for alleged misconduct. The employer proceeded with immediate termination – without issuing a show cause letter, conducting an inquiry, or documenting the evidence.

 

Where the process failed :

  • Procedural requirement for fairness were ignored
  • The company was unable to justify the dismissal during the tribunal

Outcome: The Tribunal ruled in favour of the employee and found the dismissal unjust.

 

The Pattern Is Evident

When employers:

  • Act without seeking advice
  • Lack documentation pertaining to IR related issues such as dismissal or termination, amongst others
  • Execute dismissals or termination without procedural compliance

…which exposed the employer to financial, reputational, and potential legal risks – all of which could have been avoided had proper procedures been adhered to.

 

What Could Have Changed?

  • Initial consultation with MECA
  • Accurately drafted documents
  • Clear processes for dismissal, MSS, or misconduct
  • Consistent application of disciplinary or performance procedures

 

Key lesson

Most disputes don’t arise from malicious intent but from misunderstood obligations. In each of these cases, a short consultation before action could have avoided significant cost, time, and stress.

 

Need guidance before it becomes a problem?
MECA members get access to real-time support and 1-on-1 guidance from our consultants. For more information, contact us today via admin@meca.com.my or +603 2779 4227.

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