When a Performance Plan Becomes a Breach of Trust
Imagine dedicating 17 years to your employer, only to be told out of the blue that you’re underperforming. No prior warnings. No performance reviews. Just a Performance Improvement Plan (PIP) on your desk and an unspoken message that you’re no longer wanted.
This was the reality for the Claimant as an Administrative Assistant at the Company in Malaysia. The Claimant worked diligently for nearly two decades. Then, a change in leadership, compounded by friction with a new HR Head, shifted her workplace experience into a spiral of humiliation, surveillance, and silent hostility.
The Claimant resigned. But this wasn’t just a resignation. It was constructive dismissal. The Industrial Court awarded her RM76,014 in back wages and compensation.
The Anatomy of Constructive Dismissal
Constructive dismissal isn’t just about big, blatant actions. It’s the slow erosion of trust, respect, and dignity in the workplace, often through:
- Unfair placement under PIP without prior warnings or reviews
- Targeted supervision or humiliation by superiors
- Failure to address employee grievances despite being aware
- Performance appraisals skipped or manipulated
In this case, the Court ruled that the PIP was imposed without due performance review or warnings. It was designed not as a tool for development but as a means of exit.
What This Means for Employers
- Due Process is Non-Negotiable. A PIP isn’t a shortcut to dismissal. It must be preceded by documented warnings, performance reviews, and fair evaluations.
- Supervisor Conduct Matters. Leadership behaviors, especially microaggressions or biased remarks, can escalate to legal consequences.
- Cumulative Actions Count. Courts don’t just evaluate isolated incidents. They assess the cumulative treatment of the employee, especially when trust is breached.
What This Means for Employees
- Document Everything. Keep records of feedback, reviews, and any discriminatory or hostile treatment.
- Raise Grievances Promptly. Even informal complaints like feedback boxes count if formal channels feel inaccessible.
- Know Your Rights. You are entitled to fair treatment, clear expectations, and the opportunity to improve before punitive measures like a PIP.
This case isn’t just about a singular injustice. It’s a cautionary tale for organisations that treat HR processes as mere checkboxes rather than as guardians of mutual respect.
When HR fails to manage performance with integrity, the cost isn’t just compensation. It’s the erosion of organisational trust.
When HR fails to manage performance with integrity, the cost isn’t just compensation. It’s the erosion of organisational trust.
Want to read the full Industrial Court judgment?
Download the official case file here: CLAIMANT vs COMPANY – Industrial Court Malaysia – Case No 7-4-1435-22 – Award No 856 of 2025
