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2023 MarsdenLR 2864
INDUSTRIAL COURT KUALA LUMPUR
ADIBAH HANI AZIT – Appellant
Versus
PETROLIAM NASIONAL BERHAD (PETRONAS) – Respondent
Award No: 2403 Of 2023 [Case No: 21/4-324/20]
Dismissal for insubordination and dishonesty is justified when an employee fails to comply with lawful orders, undermining the employer-employee relationship.
Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Dismissal for misconduct - Claimant dismissed for failing to comply with superior's instructions, resulting in insubordination and dishonesty regarding performance ratings - Court evaluates the fairness of the domestic inquiry and the appropriateness of dismissal - Claimant's conduct deemed serious enough to justify termination. (Paras 1, 30, 31, 82, 87)
(B) Misconduct - Definition and elements of insubordination - Employee's duty to comply with lawful orders of superiors emphasized, with reference to established case law. (Paras 30, 82)
Facts of the case:
The Claimant, employed as a Project Engineer, was dismissed after being found guilty of multiple charges of misconduct including insubordination and dishonesty. The dismissal followed a domestic inquiry where she failed to report to her assigned project and made false claims regarding her performance rating.
Findings of Court:
The Court found that the Claimant's actions constituted serious misconduct justifying her dismissal, as she repeatedly disobeyed lawful instructions from her superiors.
Issues: The main issues included whether the charges against the Claimant were proven and whether the dismissal was justified.
Ratio Decidendi: The Court ruled that the Claimant's persistent refusal to follow instructions and her dishonesty in communications undermined the employer-employee relationship, warranting dismissal.
Result: Claimant's dismissal upheld.
| Table of Content |
|---|
| 1. introduction of parties and factual background (Para 1 , 2 , 3) |
| 2. events leading to the domestic inquiry (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 3. findings of the domestic inquiry panel (Para 13 , 14 , 15 , 16) |
| 4. company's case and arguments (Para 17 , 18 , 19 , 20 , 21) |
| 5. claimant's submissions and defenses (Para 22 , 23 , 24 , 25 , 26 , 27) |
| 6. pleadings and documents considered by the court (Para 28 , 29) |
| 7. applicable law and burden of proof (Para 30 , 31) |
| 8. evaluation of evidence and charges of misconduct (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47) |
| 9. claimant's responsibilities and defiance of instructions (Para 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63) |
| 10. charges of dishonesty and breach of conduct (Para 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73 , 74 , 75) |
| 11. fairness of the domestic inquiry (Para 76 , 77 , 78 , 79 , 80 , 81) |
| 12. proportionality of dismissal (Para 82 , 83 , 84 , 85) |
| 13. ratio decidendi on dismissal (Para 86) |
[1] The dispute is a reference by the Honourable Minister of Human Resources dated 6 January 2020 pursuant to s 20(3) of the Industrial Relations Act 1967 arising out of the dismissal of ADIBAH HANI BINTI AZIT (hereinafter referred to as "the Claimant") by PETROLIAM NASIONAL BERHAD (PETRONAS) (hereinafter referred to as "the Company") on 3 September 2019.
Introduction Of Parties
The Company
[2] According to its official website, the company is a global Malaysian energy group with a presence in over 100 countries. Established in 1974, it is a legal entity incorporated under the Malaysian Companies Act and reports to the company's Board of Directors. The corporation is vested with all oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. The group is engaged in a broad spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment. Petronas provides a substantial source of income for the Malaysian government, accounting for more than 15% of the government's revenue from 2015 to 2020. The company is headquartered at the Petronas Twin Towers, located in Kuala Lumpur, Malaysia.
The Claimant
[3] The Claimant commenced her employment with the Company with effect from 1 July 2013 in the position of Executive (Planning and Scheduling), PETRONAS Carigali Sdn Bhd On 25 August 2017, please see letter dated 25 August 2017 at [COB-1, pages 30 - 31], the Claimant was officially assigned as Executive (Project Management) under the division of Plant Change Delivery ("PCD") in PETRONAS Technical Services Sdn Bhd ("PTSSB"), a wholly owned subsidiary of the Company. The Claimant was assigned to ALEXIS Gas Processing Santong Project ("ALEXIS GPS Project") which is structured under PTSSB, specifically under Project Delivery and Technology ("PD & T"), where the Claimant held the position of Project Engineer for the ALEXIS GPS Project.
Factual Matrix
Events Leading To The The Claimant Being Issued With Notice Of Domestic Inquiry
[4] Thereafter, by an email dated 27 March 2018, Encik Zaimi Salleh, Head (Project Management) of PCD - Petronas Gas Berhad ("PGB") in PTSSB had informed the Claimant that she was officially assigned to the third phase of the ALEXIS GPS Project ("ALEXIS GPS Project (Stage 3)") [COB-2, pages 4 - 5].
[5] On or around June 2018, the Claimant stopped coming to the ALEXIS GPS Project (Stage 3) project office at Santong and/or stopped contributing to the ALEXIS GPS Project (Stage 3).
[6] As such, by an email dated 22 July 2018, the Project Manager for the ALEXIS GPS Project (Stage 3), Encik M Razif Mustafa ("Encik R
