The Code of Conduct for Industrial Harmony (COC) serves as a guideline adopted by employers, employees, and trade unions in managing industrial relations issues. Meanwhile, the government—through the Department of Industrial Relations (JPPM), the Department of Labour (JTK), the Department of Trade Union Affairs (JHEKS), and the Industrial Court—ensures that employers, employees, and trade unions comply with COC practices when handling industrial dispute issues.
In the case of Trudent Malaysia Sdn. Bhd. v. National Union of Commercial Workers (1987) 2 ILR 190, the Industrial Court stated
“In short the Court is of the view that the provisions relating to redundancy and retrenchment in the Code of Conduct for Industrial Harmony were not adhered to by the Company and even if the retrenchments were bona fide the operating of the redundancy situation by the company would have been found to be unacceptable by this Court as being unfair and the dismissals to be unjust therefore”