Human Resources Ministry continues appeal in NUBE-MCBA dispute

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Human Resources appeal in NUBE-MCBA case

Highlights

The Ministry of Human Resources is continuing its appeal to the Court of Appeal for a determination on legal issues following the High Court’s decision.
MCBA obtained a stay of execution of the High Court’s decision on 26 Sept, preventing negotiations on the NUBE-MCBA collective agreement from proceeding.
Ramanan’s appeal will not automatically allow negotiations to resume, as MCBA’s stay order remains in force.

This article was translated from the original. Read the original version by our correspondent here.

Purpose of the appeal and status of the court order

According to The Edge Malaysia, the Ministry of Human Resources said in a statement that Human Resources Minister Datuk Seri R Ramanan is continuing the appeal to obtain a Court of Appeal determination on legal issues arising from the High Court’s decision.

The ministry said the minister had not applied for a stay of execution of the High Court’s decision, while the Industrial Relations Department of Malaysia had taken proactive steps by calling on the parties involved to resume the conciliation process. However, MCBA exercised its right to apply for a stay of execution of the decision, and the court granted the application.

According to the ministry, the stay order prevents negotiations on the collective agreement from proceeding for as long as the order remains in force. Accordingly, the ministry explained that Ramanan’s withdrawal of the appeal would not automatically allow negotiations between NUBE and MCBA to resume, as the stay order obtained by MCBA remains in force.

Implications for the banking dispute

The dispute between MCBA and NUBE, previously reported by the media, involves festive aid payments and the 20th collective agreement. The ministry reaffirmed its commitment to facilitating the resolution of industrial disputes through dialogue and amicable negotiations, in line with legal provisions and the principles of industrial harmony.

The ministry also urged all parties to respect the ongoing legal process and remain open to an amicable settlement, subject to the court order, in order to protect the rights and interests of all parties.

On 13 Feb, the High Court allowed NUBE’s application for judicial review, quashed two references made by the human resources minister to the Industrial Court, and directed both parties to resume negotiations. However, on 26 Sept, the High Court allowed MCBA’s application to stay execution of the decision pending the association’s appeal to the Court of Appeal.

In our earlier report on the Court of Appeal’s decision recognising a law firm’s “commission partner” as a partner under the Partnership Act 1961 , we explained how the court held that the individual was liable to pay the outstanding balance on the house’s sale price. The decision overturned the lower court’s findings and signalled that salary- or commission-based partnership structures can expose firms and their partners to broader legal liability.

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