A summary of the Federal Court’s decision in Ahmad Zahri bin Mirza Abdul Hamid v AIMS Cyberjaya Sdn Bhd [Federal Court Civil Appeal No. 02(f)-11-02/2019(W)].
The key takeaways are as follows:
i. A contract of employment which is renewed successively without application by the employee and without any intermittent breaks in between is in reality a permanent employment; and
ii. The purpose of the “essential unity group enterprise” or “common employer” doctrine is to permit the corporate veil to be pierced in order to establish or identify the true labour relationship between parties in terms of the existing labour relation realities.