Category Archives: News & Events

No escape from paying minimum wage

It is a standard practice in the hotel industry to collect a 10% service charge from the customers in place of a tipping system, which will in turn be distributed to the eligible employees. This seemingly explains why the hotel industry employees were paid low basic salary, because they would be compensated with the income earned from service charge.

A Contractor’s Claims in Adjudication against the Sub-Contractor

When a contractor takes over the sub-contractor’s works, can the contractor make a claim in adjudication against the sub-contractor? Scenarios as such are not uncommon as contractors may be obliged take over the sub-contractor’s works when the sub-contractor can no longer proceed with its work, refuses to carry out rectification works, or worst, abandons the project altogether.

Contractors who find themselves in such circumstances and wish to make a claim against the sub-contractors by way of an adjudication under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) should be wary of the recent High Court case, Hiform (M) Sdn Bhd v Pembinaan Bukit Timah Sdn Bhd and another case.

Calling on performance bonds: new test for unconscionability?

The recent Federal Court decision in Catajaya Sdn Bhd v Shoppoint Sdn Bhd has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the Federal Court held that termination clauses must be interpreted strictly.

Federal Court rules that termination clauses should be construed strictly

The recent Federal Court decision in Catajaya Sdn Bhd v Shoppoint Sdn Bhd has breathed new life into the interpretation of termination clauses in contracts. Indeed, it sounded a cautionary note to the business community at large when the Federal Court held that termination clauses must be interpreted strictly.