Malaysia

The Court of Appeal, in the recent decision of Airasia Bhd v Rafizah Shima Mohamed Aris,1 ruled on the extent of which the Malaysian Federal Constitution applies in an employment contract between private parties, and the applicability of the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) in Malaysia.

In this article, we analyse the case that has altered the current landscape of women’s rights in the Malaysian workforce.

The facts: The appellant, Airasia Bhd, executed a Training Agreement and Bond in October 2006 (the agreement) with its female employee, the respondent. The agreement contained a term prohibiting the respondent from getting pregnant during the training period, which was approximately four years. When the respondent subsequently confirmed her pregnancy before the end of the four-year period, her employment was terminated.

The appellant commenced a civil suit at the Sessions Court for breach of the agreement, and a summary judgment was entered against the respondent.

On appeal, the respondent filed an action for a declaration that the term in the agreement was illegal, null and void as it discriminated against her as a married woman, and contravened the Federal Constitution as well as the CEDAW. The High Court held in favour of the respondent. Thus, the appellants appealed to the Court of Appeal.

The issues: The issues before the Court of Appeal were, firstly, whether the agreement discriminated against women and contravened the Federal Constitution and the CEDAW; and secondly, whether the CEDAW has any force of law in Malaysia.

Convention on the Elimination of all forms of Discrimination Against Women (CEDAW)

Article 2
States Parties condemn discrimination against women in all its forms, agree to pursue by all appropriate means and without delay a policy of eliminating discrimination against women…:

Malaysian Federal Constitution

Article 8 – Equality
(2) Except as expressly authorised by this Constitution, there shall be no discrimination against citizens on the ground only of religion, race, descent, place of birth or gender in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishing or carrying on of any trade, business, profession, vocation or employment.

The decision: In allowing the appeal, it was held that as a branch of public law, constitutional law concerns only the contravention of an individual’s rights by a public authority, and, therefore, did not apply to the agreement in question, which was a lawful contract between private parties.
Additionally, while Malaysia is a signatory to the CEDAW, without express incorporation into domestic law or local legislation, the provisions of international obligations in the said convention did not have any binding effect. Furthermore, the agreement did not restrain or prohibit marriage or pregnancy if the respondent completed the said training programme accordingly. Therefore, the agreement did not discriminate against women.

The implications: This decision, which ruled on the non-application of the CEDAW in Malaysia, effectively distinguishes the views adopted in the highly applauded case of Noorfadilla Ahmad Saikin v Chayed Basirun & Ors.2 In that case, the High Court judge, who referred to the CEDAW to clarify the meaning of ‘equality’ and ‘gender discrimination’, ruled that it has the force of law and is binding on members states, including Malaysia, which ratified the CEDAW in 1995.

Whilst the Court of Appeal in this case is not bound by judicial precedent to follow a decision emanated from the High Court, this recent decision appears to have cast a doubt on the legal status of women in the Malaysian workforce.

Conclusion: Notwithstanding the above, in line with Malaysia’s standpoint to promote gender equality and more importantly, to eliminate all forms of discrimination against women, this decision may in fact act as a catalyst for the Government to take all the necessary steps to incorporate the CEDAW into domestic law or local legislation.

Endnotes

  • [2015] 2 CLJ 510
  • [2012] 1 CLJ 769

ZUL RAFIQUE & partners
D3-3-8 Solaris Dutamas, No 1 Jalan Dutamas 1
50480 Kuala Lumpur, Malaysia
Tel: (60) 3 6209 8228 / Fax: (60) 3 6209 8221
Email:
mariette.peters@zulrafique.com.my
amylia.soraya@zulrafique.com.my
Website: www.zulrafique.com.my

Related Articles by Firm
Moral Rights … From peaks to pieces
MALAYSIA- Six years ago, the cultural and historical sculpture, Lunar Peaks or Puncak Purnama (‘the Sculpture’) made the national headlines when ...
Introducing the tort of sexual harassment
The Malaysian Federal Court in the case of Mohd Ridzwan bin Abdul Razak v Asmah binti Hj Mohd Nor recently delivered a landmark judgment ...
New Minimum Wages from July 2016
In Malaysia, the National Minimum Wages initiative (the Policy) was first introduced and announced by the Malaysian Prime Minister ...
Only Muslims may practise in Syariah courts
The Malaysian Federal Court in the case of Majlis Agama Islam Wilayah Persekutuan v Victoria Jayaseele Martin [2016] 1 LNS 131
Trans-Pacific Partnership Agreement ... some highlights
The Trans-Pacific Partnership Agreement (the TPPA) is a multilateral free trade agreement which aims to further liberalise the economies of ...
Financial Ombudsman Scheme
Financial Ombudsman Schemes are not novel in countries such as Australia, Ireland, the United Kingdom, and Singapore. On October 29, 2015, the Central Bank of Malaysia...
Budget 2016... Some highlights
Budget 2016 was first unveiled on October 23, 2015 by the Malaysian Prime Minister and Minister of Finance, Dato’ Sri Mohd ...
The Prevention of Terrorism Act 2015
The Prevention of Terrorism Act 2015 (the Act) came into force on September 1, 2015. The Act, which aims to prevent the conduct or ...
A new strata regime
Introduction The Strata Management Act 2013 (the Act) which came into force on June 1, 2015 repeals the Building and Common Property (Maintenance and Management) Act 2007. The implementation of the ...
Unfair dismissal…compensation, reinstatement, or neither?
The Malaysian Federal Court in the case of Unilever (M) Holdings Sdn Bhd v So Lai & Anor1 has issued a landmark ruling whereby it was held that an employee who had been wrongfully ...
The net effect
Netting arrangements refer to the settlement of obligations between two parties that processes the combined value of transactions. It is designed to lower the number of transactions ...
Taxing times ahead?
The Goods and Services Tax (GST) at the rate of 6 percent was introduced in Malaysia with effect from April 1, 2015. ...
Amendments to the Malaysian Penal Code
After the withdrawal of two controversial clauses relating to the national flag and vandalism, the amendments made to the Malaysian Penal Code finally took effect …
Dismissal for unlawful picketing...too harsh?
In October 2014, the Federal Court of Malaysia, in Harianto Effendy Zakaria & Ors v Mahkamah Perusahaan Malaysia & Anor, [2014] 6 MLJ 305, upheld the dismissal of nine former bank employees by …
Prompt, punctual and paid (the Construction Industry Payment & Adjudication Act)
The construction industry, which has always been one of the more productive sectors, is constantly contributing to Malaysia’s economy. However, its fluctuating growth rates …
The Malaysian Credit Reporting Agencies Act comes into force
The Credit Reporting Agencies Act (CRA Act) came into force on January 15th, 2014. The Act provides for the registration and regulation of credit reporting agencies that are carrying on credit …
Landmark case on minimum wages in Malaysia… Does it include a service charge?
In June 2014, the Malaysian Industrial Court, in a landmark decision, ruled on the issue of a hotel employee’s salary structure. …
Deep impact... (on Malaysia’s bond market?)
The recent decision of the Malaysian Federal Court reported as CIMB Bank Bhd v Maybank Trustees Bhd & Other Appeals [2014] 3 CLJ 1 appeared to have changed the landscape of the bond market …
The liberalisation of legal services in Malaysia
After several years of dialogue, debate and deliberation, the amendments to the Malaysian Legal Profession Act 1976 have finally come into force, taking effect from June 3rd, 2014. The Legal Profession Act …
Related Articles
Related Articles by Jurisdiction
Fintech in Malaysia: Trends and recent legal developments
Financial services institutions in Malaysia have made aggressive efforts to embrace and keep pace with fintech ...
Latest Articles