The dismissal of the Claimant was justified due to proven misconduct involving gross negligence and concealment of financial errors, affirming the employer's right to terminate employment for serious violations.

Reihana Abd Razak:

Reference

[1] This is a reference dated 7 December 2020 by the Honourable Minister of Human Resources Malaysia pursuant to s 20(3) of the Industrial Relations Act 1967 arising out of the dismissal of Halimah Binti Ariffin ("the Claimant") by Jambatan Kedua Sdn Bhd ("the Company") on the 12 July 2019.

Factual Background

[2] The Claimant commenced employment with the Company on 5 August 2014 as a Deputy Manager - Financial Reporting. She was later offered a permanent position effective from August 2016. Effective 1 June 2017, the Company promoted the Claimant to the position of Manager.

[3] Sometime around March 2019, the Company's management discovered that a sum of RM74,418.36 had been mistakenly transferred to a company known as Delta Business Solution Sdn Bhd ("Delta Business"), instead of the correct company known as Delta Force Security Services and Consultancy Sdn Bhd ("Delta Force") based on Delta Force's invoice dated 31 March 2017.

[4] Upon further investigations by the Company, it was found that:

i. the sum of RM74,418.36 was paid out to Delta Business on 22 June 2017;

ii. the mistake was subsequently discovered by the former Account Assistant, Pn Nurul Husna binti Ismail (COW-1), who then had reported the incident to the Claimant;

iii. the Claimant, together with her immediate superior, ie one En Ali Omar bin Ali Hassan (the Senior Manager of the Finance Department), failed to notify or alert the Company's management of the mistake with regards to the payment made. Instead they had treated the payment of RM74,418.36 as pre-payment to Delta Business and the recovery of the said sum of RM74,418.36 was carried out by partial refund and offsetting Delta Business' subsequent invoices. The unauthorised exercise was only completed on 21 March 2019, ie 2 years after the erroneous payment was made; and

iv. the Claimant only processed the payment of RM74,418.36 to Delta Force 7 months after the issuance of the invoice by Delta Force.

[5] The Company contends that the Claimant had been grossly negligent and had exposed the Company to financial risk as well as legal risk. The amount of RM74,418.36 was paid to Delta Business without any invoices, and thereafter causing the Company to make purchases from Delta Business in order to offset the prior payment of RM74,418.36.

[6] The Claimant has been issued with a show cause letter dated 2 April 2019 to answer 5 allegations to which the Claimant replied vide letter dated 9 April 2019.

[7] Unsatisfied with the reply to the Show Cause Letter, the Company held a domestic inquiry for the Claimant to answer 5 Charges that was preferred against her as follows:

"i. CHARGE No 1

"Anda diantara 17 Mei 2017 dan 22 Jun 2017 telah melakukan kesalahan transaksi dengan meluluskan pembayaran berjumlah RM74,418.36 kepada Syarikat Delta Business Solutions Sdn Bhd dimana pembayaran tersebut sepatutnya dilakukan kepada Syarikat Delta Force Security Sdn Bhd.";

ii. CHARGE No 2

"Anda diantara 17 Mei 2017 dan 22 Jun 2017 telah gagal memaklumkan kepada pihak Pengurusan berkaitan kesilapan transaksi diatas";

iii. CHARGE No 3

"Anda diantara 17 Mei 2017 dan 22 Jun 2017 telah gagal memaklumkan kepada pihak Auditor syarikat berkaitan kesilapan transaksi diatas";

iv. CHARGE No 4

"Anda didapati melakukan salah laku dengan cuba untuk merahsiakan kesalahan transaksi diatas dari pengetahuan pihak Pengurusan";

v. CHARGE No 5

"Anda didapati gagal mendapatkan kembali lebihan jumlah pembayaran yang telah dilakukan kepada Syarikat Delta Business Solutions Sdn Bhd."

[8] Upon the conclusion of the domestic inquiry, the Domestic Inquiry Panel found the Claimant guilty of Charges No 1 and 4, whilst she was exonerated from Charges No 2, 3 and 5.

[9] In light of the seriousness of the charges of misconduct, the Company had lost trust and confidence in the Claimant's employment with the Company and vide letter dated 12 July 2019, her services was terminated with immediate effect.

[10] The Claimant did not appeal against the Compan