In the Industrial Tribunal case with number 3945/CC, the applicant, a Chief Operating Officer and Director, engaged with Amicorp Fund Services Malta Ltd, was dismissed by means of a letter of termination due to the fact that, according to the defendant company, he was not properly performing his functions.
The Tribunal commented that the case was a particular one since it dealt with senior management, in which cases usually an amicable termination is arrived at. The Tribunal also noted that in the termination letter, no reason for termination had been indicated. Moreover, it had not been proven that prior to termination, the applicant had been confronted with his shortcomings or had been asked to provide any explanation. Whilst a company has the right to be convinced and have full faith in its top management, if there is a lack of such faith, it must be corroborated with serious and proven reasons. The company cannot easily terminate employment of a manager simply based on this lack of faith.
After having considered all circumstances, the Tribunal concluded that there was no good and sufficient cause for termination and awarded the applicant the sum of €18,750 as compensation.