Back
2024 MarsdenLR 2988
INDUSTRIAL COURT KOTA KINABALU
MUSLIMAT ABJAD – Appellant
Versus
MALAYSIA AIRPORTS HOLDINGS BHD – Respondent
Award No: 1444/2024 [Case No: 17/4-770/21]
The dismissal of an employee for alleged misconduct requires the employer to prove just cause, and failure to do so renders the dismissal invalid.
Headnote:(A) Industrial Relations Act 1967 - Sections 20(3) - Dismissal of employee for alleged medical benefit abuse - Claimant's dismissal deemed without just cause or excuse due to failure of Company to prove misconduct - Court emphasized the importance of proportionality in disciplinary action and natural justice principles. (Paras 12, 21, 69)
(B) Burden of proof - The Company bears the burden to prove misconduct and just cause for dismissal, not the Claimant. (Paras 14, 16)
(C) Domestic Inquiry - Conduct of Domestic Inquiry deemed valid but the absence of witnesses and procedural fairness questioned. (Paras 34, 40, 42)
(D) Misconduct - Definition of misconduct in employment context established, with emphasis on the need for evidence of unreasonable behavior. (Paras 48, 50) (E) Proportionality of punishment - The dismissal was found to be disproportionate given the Claimant's long service and clean record. (Paras 56, 68)
Facts of the case:
The Claimant was dismissed for alleged misuse of medical benefits after a Domestic Inquiry found him guilty. The Claimant argued the dismissal was without just cause. (Paras 9, 23)
Findings of Court:
The Court ruled that the dismissal was without just cause or excuse, emphasizing the need for proportionality in punishment. (Paras 69, 70)
Issues: Whether the dismissal was justified and whether the Company established misconduct. (Paras 21, 50)
Ratio Decidendi: The Court found that the Company did not meet the burden of proof regarding misconduct and that the dismissal was disproportionate given the Claimant's history. (Paras 68, 70)
Result: Claimant awarded RM169,842.30 in compensation. (Para 78)
AWARD
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 MUSLIMAT BIN ABJAD (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 Security Officer with effect from 23 October 1985. Pursuant to the corporatization of the airports services of the Department of Civil Aviation ("DCA"), the Claimant was offered and commenced his employment with the Company on 26 October 1992.
[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 dated 17 May 2020, 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 Lampiran 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 14 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 pertimbangan 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 seven (7) witnesses testified in Court as follows:
CoW1: Mohd Adib Ismail - the Manager Industrial Relations - Human Capital Division of the Company. His witness statement was marked as CoWS1.
CoW2: Dayang Ratna Kesmawati Abang Morni - the panel of the Domestic Inquiry. Her witness statement was marked as CoWS2.
CoW3: Captain (B) Mazlan Fauzi - the Senior Manager Industrial Relations and Occupational Safety and Health of the Company. His witness statement was marked as CoWS3.
CoW4: Dr Jasman Haris - former Medical Director of PMCatre Sdn Bhd. His witness statement was marked as CoWS4.
CLW1: Muslimat Bin Abjad - the Claimant. His witness Statement was marked as C
