KUALA LUMPUR, Dec 9 — A 16-year legal battle between former security guard L. Subramaniam and the US embassy over alleged unlawful dismissal in 2008 has ended with an out-of-court settlement.

Free Malaysia Today reported that the settlement was reached on November 1, and Subramaniam’s lawyers discontinued his appeal on November 14 after receiving a "fair sum” from the embassy. No liability was admitted by the embassy.

"The settlement marks the full and final resolution of the matter,” said Parti Sosialis Malaysia (PSM) deputy chairman S. Arutchelvan in a statement today.

Subramaniam’s case, which began in April 2008, set significant legal precedents.

On June 20, 2022, the Federal Court ruled that embassies only have restricted immunity in unfair dismissal cases.

The court clarified that the Industrial Court is the proper forum to assess the applicability of sovereign immunity in such cases.

"This decision means embassies cannot dismiss their workers arbitrarily or summarily,” said Arutchelvan.

Another key outcome of Subramaniam’s case was the passing of the Jurisdictional Immunities of Foreign States Bill 2023, which excludes employment disputes from the immunity claims of foreign states. The Dewan Negara approved the bill on April 1.

Arutchelvan expressed gratitude to former human resources minister M. Kulasegaran for referring the case to the Industrial Court in 2019.

He also commended the legal team, led by Ragunath Kesavan and Tai Yong Fung, who worked pro bono on the case.

In April 2023, the Industrial Court awarded Subramaniam RM66,000 in compensation and back wages after finding his dismissal unlawful. However, the High Court overturned the award on April 1, declaring that the Industrial Court lacked jurisdiction over the US government.

The court ruled that Subramaniam’s termination for misconduct was an internal matter and ordered him to pay RM8,000 in costs to the US government.

Subramaniam’s appeal was pending before the Court of Appeal when the settlement was finalised.