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2024 MarsdenLR 3215
INDUSTRIAL COURT KOTA KINABALU
JOHANEY VICTOR – Appellant
Versus
MALAYSIA AIRPORTS HOLDINGS BERHAD – Respondent
Award No: 1226 Of 2024 [Case No: 17/4-765/21]
The employer must prove misconduct for dismissal; failure to establish just cause renders the dismissal unlawful.
Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Dismissal of employee for alleged medical benefit abuse - Claimant dismissed on grounds of misconduct in medical claims - Court found dismissal without just cause or excuse - Burden of proof lies with employer to establish misconduct. (Paras 12, 14, 50, 81)
(B) Natural Justice - Requirement for fair inquiry and opportunity to defend - Court noted procedural irregularities in Domestic Inquiry but stated these could be cured at Industrial Court hearing. (Paras 36, 43)
Facts of the case:
Claimant employed since 1984, dismissed for alleged misuse of medical benefits, specifically excessive clinic visits and costs. The Company conducted an inquiry, found Claimant guilty, and terminated employment. (Paras 3, 8, 9)
Findings of Court:
Court determined that the Company failed to prove misconduct on a balance of probabilities, thus ruling the dismissal was without just cause. (Paras 50, 81)
Issues: Whether the dismissal was with just cause or excuse and the validity of the Domestic Inquiry. (Paras 21, 50)
Ratio Decidendi: The court emphasized the employer's burden to prove the misconduct and that the dismissal was disproportionate given the absence of clear misconduct. (Paras 50, 56)
Result: Dismissal ruled unlawful; Claimant awarded compensation. (Paras 90, 91)
AWARD
A. Reference
[1] This is a reference by the Honourable Minister of Human Resources under Section 20 (3) of the Industrial Relations Act 1967 ("the IRA 1967") arising out of the dismissal of JOHANEY VICTOR (hereinafter referred to as "the Claimant") by MALAYSIA AIRPORTS HOLDINGS BERHAD (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 by the Company with effect from 23 July 2020.
[3] The Claimant commenced his employment with the Department of Civil Aviation as a Fire Fighter with effect from 13 August 1984. Pursuant to the corporatization of the airports services of the Department of Civil Aviation ("DCA"), the Claimant was offered employment as a Fire Fighter with the Company. The Claimant commenced his employment with the Company as Fireman- Grade 11 on 16 October 1992. The Claimant's last post in the Company before the termination of his service was as an Aviation Security Assistant - Grade 13.
[4] This present case relates specifically on the alleged medical benefit abuse by the employees of the Company including by the Claimant. Beginning February 2020 until April 2020, the Company had conducted an analysis of medical claims data for the year 2019 and discovered that the claims for medical expenses of employees based in Kota Kinabalu International Airport ("KKIA") were the highest in Malaysia.
[5] By a letter dated 14 May 2020, the Company issued a Show Cause Letter to the Claimant. After reviewing the Claimant's reply to show cause letter, the Company decided to conduct a Domestic Inquiry in order to provide the Claimant an opportunity to put forward his defence before an independent Panel of Inquiry.
[6] The Company issued a Notice of Domestic Inquiry dated 29 June 2020 to the Claimant to answer to the charge:
"Anda didapati telah menyalahgunakan faedah rawatan dan perubatan Syarikat di mana jumlah lawatan serta kos rawatan perubatan "General Physician" (GP) bagi diri anda dan tanggungan anda adalah tidak munasabah seperti dalam Larmpiran A dan Lampiran B serta jadual di bawah:
Perbuatan anda menyebabkan pihak Syarikat mengalami kerugian kerana menanggung kos rawatan dan perubatan yang tinggi dan menyebabkan Syarikat hilang kepercayaan ke atas integriti anda sebagai seorang kakitangan".
[7] The Claimant attended the Domestic Inquiry on 16 July 2020 and pleaded not guilty to the charge. After the conclusion of the Domestic Inquiry, the panel of Domestic Inquiry found the Claimant "Guilty" of misusing the Company's treatment and medical benefit.
[8] The Company decided to terminate the Claimant's employment with immediate effect vide a Letter of Dismissal dated 23 July 2020 which inter alia stated that "Berdasarkan bukti-bukti dan dokumen-dokumen yang dikemukakan semasa sesi Siasatan Dalaman, pihak Syarikat dengan ini mendapati anda BERSALAH ke atas kesalahan seperti tertera di dalam Notis Siasatan Dalaman bertarikh 29 Jun 2020. Setelah pertimbanagn teliti, pihak Syarikat dengan ini berkeputusan untuk menamatkan perkhidmatan anda berkuatkuasa 23 Julai 2020".
[9] The Claimant submits that he was unlawfully terminated and that his dismissal by the Company was without just cause or excuse.
[10] The Company however states that the termination of the Claimant employment was lawful with just cause or excuse. The Company prays for the punishment of dismissal to be upheld and the Claimant's claim to be dismissed.
C. Witnesses
[11] There were 4 witnesses testified in Court as follows:
CoW1: Rehan Syafiq Bin Azizan - the panel of the Domestic Inquiry. His witness statement was marked as CoWS1.
CoW2: Captain (B) Mazlan Fauzi - the Senior Manager Industrial Relations and Occupational Safety and Health of the Company. His witness statement was marked as CoWS2.
CoW3: Dr Jasman Haris - former Medical Director of PMCatre Sdn.Bhd. His witness statement was marked as CoWS3.
CoW4: Mohd Adib Ismail - the Manager Industrial Relation
