Back
INDUSTRIAL COURT SARAWAK
MOHD PAUZIE ABDULLAH @ PAUL CHUA – Appellant
Versus
TAN CHONG EKSPRES AUTO SERVIS SDN BHD – Respondent
Award No: 604 of 2021 [Case No: 8/4-104/19]
This case discusses conflict of interest primarily in the context of an employee, who holds a senior position within a company, accepting gifts or monetary rewards from contractors or related parties. The court emphasizes that such acts can compromise the employee's fidelity and good faith towards the employer, especially when the employee's influence or authority could be used to benefit personal interests at the expense of the company's best interests (!) (!) (!) .
It highlights that employees in positions of influence are expected to act with integrity and avoid situations where their personal interests conflict with their professional duties. Accepting gifts or rewards from contractors, especially when the employee has the authority to influence contractual decisions or payments, is viewed as a breach of this obligation and constitutes misconduct. The court also notes that the company's policies and policies communicated through handbooks or memos clearly prohibit such conflicts, and employees are expected to be aware of these policies (!) (!) (!) .
Furthermore, the case underscores that ignorance of conflict of interest policies is not a valid defense, given the employee's seniority and the company's efforts to inform staff through memos and briefings over the years. The court considers the acceptance of gifts or rewards, such as Angpao or monetary transfers, as placing oneself in a conflict of interest position, especially when the employee's influence over contractual or financial decisions could be affected (!) (!) (!) .
In summary, the case discusses conflict of interest as a breach of fiduciary duty, involving acts that could influence or appear to influence the employee's decision-making, thereby compromising the integrity of the employment relationship and the employer’s interests.
AWARD
[1] This is a Ministerial reference to the Industrial Court under s 20(3) of the Industrial Relations Act 1967 ( IRA ) made on 23 January 2019 for an award in respect of the dismissal of Mohd Pauzie Abdullah @ Paul Chua (claimant) by Tan Chong Ekspres Auto Servis Sdn Bhd (company) on 31 July 2018.
Background Facts
[2] The claimant joined the company on 1 November 2005 as a Service Officer.
[3] On 1 January 2008, the claimant was promoted as the Assistant Manager, Service and on 1 January 2014, the claimant was promoted to Manager Service.
[4] On 1 April 2014, the claimant was appointed as the Acting Regional Operations Manager for both Bintulu and Sibu branches with retrospective effect from 1 January 2014 to 30 June 2014.
[5] Vide a letter dated 18 August 2014, the claimant was confirmed as the Regional Operation Manager for both the company's Bintulu and Sibu Branch with retrospective effect from 1 July 2014.
[6] On 17 April 2018 the claimant received a letter of Suspension From Work Due to Wrongful Act of Misconduct involving conflict of interest.
[7] On 4 June 2018 the claimant was issued with a Show Cause Letter. In the Show Cause Letter the claimant was alleged to have committed four acts of misconduct.
[8] The claimant replied to the Show Cause Letter with his letter dated 11 June 2018.
[9] The company found that the claimant's explanation to the Show Cause Letter to be unsatisfactory and the company decided to initiate a Domestic Inquiry over these incidents, that is the four acts of misconduct against the claimant. This was duly communicated to the claimant vide a Notice of Domestic Inquiry dated 21 June 2018.
[10] After the Domestic Inquiry held on 28 June 2018, the panel members of the Domestic Inquiry found the claimant guilty of three of the four charges made against him.
[11] After the panel members of the Domestic Inquiry found the claimant guilty of three of the four charges, the company terminated the claimant's services. The decision of the Domestic Inquiry together with the company's decision to terminate the claimant's services was communicated to the claimant vide a Letter of Domestic Inquiry Decision dated 30 July 2018.
[12] The claimant's last drawn monthly salary was RM5,481.
[13] The claimant, being dissatisfied with the company's decision has lodged a complaint with the Industrial Relations department and the subsequent reconciliation meetings between the claimant and the company were unsuccessful.
[14] The claimant considers his termination by the company to be without just cause and excuse.
[15] By this action the claimant prays to be reinstated to his former position in the company without loss of salary, increment, bonus and seniority.
[16] The company avers that the termination of the claimant was with just cause and excuse. The company denies the claimant's claim and prays that the action herein be dismissed.
The Issues And The Law
[17] There is no dispute that the claimant's employment with the company was terminated on 30 July 2018.
[18] The only issue for the Court to decide is whether the claimant's termination was with just cause and excuse as contended by the company.
[19] The function of the Industrial Court under s 20 of the Industrial Relations Act 1967 was clearly stated in the Federal Court case of Milan Auto Sdn Bhd v. Wong Seh Yen , 1995 MarsdenLR 293 , as follows:
As pointed out by the Court recently in Wong Yuen Hock v. Syarikat Hong Leong Assurance Sdn Bhd & Another Appeal, [1995] 2 MLJ 753, the function of the Industrial Court in dismissal cases on a reference under s 20 is twofold, first, to determine whether the misconduct complained of by the employer has been established, and secondly, whether the proven misconduct constitutes just cause or excuse for the dismissal.
[20] It is trite law that the company bears the burden to prove that the claimant had committed the alleged misconduct and that the misconduct warrants the claimant's dismissal. In Ireka Co
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
