Wednesday, January 11, 2023

48 Indian nationals to get unpaid wages after landmark decision




48 Indian nationals to get unpaid wages after landmark decision


The 48 workers have returned to India and will be informed of the court’s ruling.


PETALING JAYA: The Court of Appeal has ordered a company to pay RM95,617 in unpaid wages to 48 Indian nationals who had worked on a high-voltage electrical tower construction project in Bentong, Pahang, five years ago.

The landmark decision also saw the court cementing the broad powers of the labour director-general to investigate matters related to unpaid wages under the Employment Act. The Court of Appeal is the highest court to hear appeals on labour-related matters.


In a video that was widely shared on social media, the 48 men claimed they were victims of forced labour in November 2018. They had fled their place of work and sought shelter in Batu Caves.

The Bentong labour department, upon deliberating on the men’s complaints, issued an order to their employer, AJN Energy (M) Sdn Bhd, to pay their unpaid salaries totalling RM95,617.

The order was overturned by the Temerloh High Court in Nov 6, 2019 as the workers had withdrawn their complaints.

Lawyers M Ramachelvam and Ameerul Radzi Azlan then filed an appeal at the Court of Appeal. The lawyers put forth two questions of law to be determined – the powers of the labour director-general to decide on the case, and whether the labour department’s presiding officer or the labour court was right to decide the company had a duty to pay wages to the workers despite the withdrawal of their complaints.

Judge Lee Swee Seng, who chaired a three-member bench, said in his ruling that the withdrawal of the complaint was “equivocal” and ordered AJN (M) Sdn Bhd to pay RM15,000 in costs.

He also ruled that Section 69 of the Employment Act 1955 gave broad powers to the labour director-general to enquire and decide on matters related to non-payment of wages. Lee said the director-general’s power would only be limited when the wages were paid by way of settlement between both parties.


However, the director-general’s power will remain if the workers’ wages have yet to be paid, despite promises of a settlement.

Judges Mariana Yahya and Lim Chong Fong sat with Lee. Lawyer L Nagaraja appeared for AJN (M) Sdn Bhd.

When contacted, Ramachelvam said the 48 Indian nationals had left for their home country some time ago and they would be informed of the court’s decision.


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