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2023 MarsdenLR 1901

INDUSTRIAL COURT SABAH
CHIN YUNG CHEIW @ REBECCA – Appellant
Versus
F & N BEVERAGE MARKETING SDN BHD – Respondent
Award No: 1491 Of 2023 [Case No: 17/4-1896/20]



Petitioner Advocates:Aaron Augustine ,Respondent Advocate: Roger Chin Ken Fong,Chan Sze Wei

Dismissal must be with just cause; proportionality in disciplinary measures is essential, and minor misconduct may not justify termination.

Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Dismissal of employee - Allegations of misconduct including unauthorized disclosure of confidential information and rude behavior towards management - Employer has burden to prove dismissal was with just cause - Court found dismissal was disproportionate to misconduct, and procedural irregularities were curable at rehearing - Claimant awarded compensation in lieu of reinstatement and back wages. (Paras 11, 12, 40, 70, 79)

(B) Employment Law - Termination - The principle of proportionality in disciplinary action must be considered, and dismissal for first-time minor misconduct may not be justified. (Paras 40, 48)

Facts of the case:
The Claimant was employed by the Company and was dismissed for alleged misconduct including the distribution of confidential information and rude behavior. The Claimant contended the dismissal was without just cause. (Paras 9, 10, 19)

Findings of Court:
The Court found that the Company failed to prove that the dismissal was with just cause or excuse, and the misconduct did not warrant dismissal. (Paras 70, 72)

Issues: Whether the dismissal was with just cause or excuse, and whether the punishment was proportionate to the alleged misconduct. (Paras 19, 40)

Ratio Decidendi: The Court held that the burden of proof lies with the employer to establish misconduct, and the dismissal was disproportionate given the Claimant's long service and lack of prior disciplinary issues. (Paras 11, 70)

Result: Claimant awarded RM155,034.00 in compensation. (Paras 79)

Table of Content
1. reference by minister under ira 1967 (Para 1 , 2 , 3)
2. allegations of misconduct against claimant (Para 4 , 5 , 6)
3. claimant's contention of unlawful termination (Para 9 , 10)
4. duty of industrial court in dismissal cases (Para 11 , 12)
5. burden of proof lies with employer (Para 13 , 14 , 15)
6. determination of just cause for dismissal (Para 19 , 20)
7. company's case on misconduct (Para 21 , 22 , 23)
8. claimant's defense against allegations (Para 24 , 25 , 26)
9. validity of domestic inquiry proceedings (Para 27 , 28 , 29 , 30 , 31 , 32 , 33)
10. court's findings on misconduct (Para 36 , 38 , 39)
11. proportionality of punishment for misconduct (Para 40 , 41 , 42 , 43)
12. claims under collective agreements (Para 55 , 56 , 57 , 58)
13. duty to mitigate losses (Para 60 , 61 , 62)
14. court's view on misconduct and dismissal (Para 66 , 67 , 68 , 69)
15. monetary award and compensation (Para 70 , 72 , 79 , 80)
Indra Ayub:

A. Reference

[1] This is a reference by the Honourable Minister of Human Resources under s 20(3) of the Industrial Relations Act 1967 ("the IRA 1967") arising out of the dismissal of Chin Yung Chiew @ Rebecca (hereinafter referred to as "the Claimant") by F & N Beverages Markerting Sdn Bhd (herein referred to as "the Company").

B. Preface

[2] This Ministerial reference required this Court to hear and determine the Claimant's complaint of dismissal on 10 February 2020 by the Company.

[3] The Claimant joined the services of Fraser & Neave (Malaya) Sdn Bhd and was then laterally transferred to the Company with effect from 1 February 2019.

[4] Based on a 1st Show Cause letter dated 1 November 2019, the Company had sought the Claimant's explanation of the alleged misconducts on 6 allegations as follows:

1. On the 8 October 2019, you have circulated confidential information of the Company (D & D List) to non-relevant employees and external parties during a meeting on 8 October 2019 without prior consent of the Company.

2. On the 8 October 2019, you have violated the Code of Business Ethics & Conduct of the Company by not protecting confidential information (D & D Charges) from non-relevant employees and external parties.

3. On the 8 October 2019, you have criticised and refused to cooperate with the Union (SCEU) and Management to discuss and review the scoring for the employees' KPIs during a meeting on 8 October 2019.

4. On the 8 October 2019 you have without due respect rudely questioned the Management and Union's authority in determining the KPIs and its weightages when it was mutually agreed between the said two parties.

5. On your letter dated 8 October 2019, you have threatened the Company of a legal action if the Company does not pay you the demand made in your letter dated 8 October 2019. (Note: During the 1st Domestic Inquiry, this 5th charge was dropped by the Company)

6. In your email dated 10 October 2019, you have used the words which were intimidating, and you have insulted your colleague, Mr Arnold Benedict Linjungan by writing - "Hence, I now suggest your KPI as "BELOW A VERAGE".

[5] On 23 December 2019, a 2nd Show Cause and Suspension Letter was issued to the Claimant in respect of 3 allegations of misconduct as follows:

1. That you, on 1 November 2019 at approximately 11:00 am, were found to be in possession of documents from the Credit Management Department ("the said Documents") without the authorization of the Company when your vehicle (SAB 1323 E) was stopped and searched at the guardhouse of F & N Beverages Marketing Sdn Bhd In Kota Kinabalu. A list of the said Documents is annexed herewith in Appendix A.

2. That you, on 1 November 2019 at approximately 11:00 am, had attempted to remove the said Documents from the Company's premises at F & N Beverages Marketing Sdn Bhd in Kota Kinabalu without the authorization from the Company when your vehicle (SAB 1323 E) was stopped and searched at the guardhouse of F & N Beverages Marketing Sdn Bhd In Kota Kinabalu. A list of the said Documents is annexed

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