AWARD

Mohd Amin Firdaus Abdullah:

[1] The reference under s. 20(3) of the Industrial Relations Act 1967 by the Honourable Minister of Human Resources Malaysia, is regarding the dismissal of Nur Faridah Binti Nanyan (the claimant) by GKN Driveline (Malaysia) Sdn. Bhd. (the respondent). It was dated 30 December 2005 and received by the court on 22 March 2006.

Background

[2] The claimant commenced work with the respondent company ("company") as a Buyer in the Purchasing Department of Materials on a starting salary of RM1,700 per month beginning from the 2nd of February 1998.

[3] On 10 August 2004, one Quah Kim Leong a Director of Keat & Leong Epoxy Spray Painting, one of the suppliers to the company came to see the Purchasing and Logistics Manager of the company named Mark Ward (COW 4) and showed him two documents (COB1; pp. 10 and 11) showing that the claimant had borrowed a sum of RM5,000 for her own self from his company on 12 August 2003. At the meeting he kept linking the loan to the impression that COW 4 got in that his company Keat & Leong Epoxy Spray Painting had expected more business from the company.

[4] After the meeting with the supplier, the company held a management meeting and concluded that the claimant had committed a serious misconduct. Consequently a show-cause letter dated 25 August 2004 was issued to the claimant alleging her to have breached Ethical Standards Policy of the company with two Charges preferred against her as seen here (COB1; p. 13):

25th August 2004

Pn Nur Faridah Bt. Nanyan

Employee No: 685

Department: Purchasing

Dear Pn Nur Faridah

Re : Letter To Show Cause

It has been reported to us on 24 August 2004 that you are alleged to have committed a breach of GKN's Corporate Policy under Ethical Standards relating to the following:

1. Conflict of Interest where you had abused your position as a buyer for the company and secured a personal interest free loan of RM5,000 in total from one of the company's suppliers, Keat & Leong Epoxy Spray Painting on 12 August 2003, In so doing you had put the company's image in a disadvantaged position.

2. Corrupt Practice where you had gained financially through interest free loan of RM5,000 of which RM4,550 is still outstanding.

In view of the serious nature of the allegation, you are hereby required to submit your explanation in writing, within FIVE (5) days of receipt of this letter as to why disciplinary action should not be taken against you. If you should fail to give any explanation within the stipulated time we will presume that you have no explanation to offer and therefore, we will proceed to take appropriate disciplinary action against you.

Since the charges leveled against you constitute a major misconduct, you are hereby suspended for fourteen days (14) with immediate effect. During the period of suspension you shall be accorded half pay and you are prohibited from entering the premises of the company unless prior permission has been obtained from the Human Resources Department.

Please acknowledge receipt of this letter by signing on the duplicate copy and return the same to us.

Thank you.

Yours faithfully,GKN Driveline Malaysia Sdn Bhd....Human Resources Manager
	Received by:...Name: 25/08/04I/C No:A1512239Date:

c.c. Mark Ward,

Department Head

[5] By a letter dated 30 August 2004 (COB1; p. 14) the claimant responded to the show-cause letter. Her letter is seen here (in verbatim):

Date: 30 August 2004

Dear Mr Jason Ching

Re: Letter To Show Cause

Refer to your letter dated 25 August 2004

I denied the accusation of commit a breach of GKN's Co