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2022 MarsdenLR 1500

INDUSTRIAL COURT KUALA LUMPUR
TEH PENG PENG – Appellant
Versus
MODERNRIA PLASTIC INDUSTRIES (M) SDN BHD – Respondent
Award No: 770 Of 2022 [Case No: 6(15)/4-879/20]



Petitioner Advocates:Selvarani Sanmugam ,Respondent Advocate: Ang Khoon Cheong

Dismissal was justified as claimant failed to secure company’s petty cash despite explicit instructions, establishing just cause under labor law.

Headnote:(A) Employment Act 1955 – Section 20(3) – Claimant dismissed for misconduct related to safeguard of petty cash – Court examined whether the dismissal was for just cause or excuse, determining that claimant failed to follow explicit instructions leading to loss – Dismissal found justified. (Paras 33, 41, 71)

(B) Misconduct – Definition of misconduct expands to any act that adversely affects employee's duties towards employer – Court affirmed the gravity of responsibility the claimant held in relation to the company’s financial safekeeping. (Paras 34, 65)

Facts of the case: Claimant, employed as Account Senior Executive, was dismissed following a cash theft incident due to failure to secure the petty cash in accordance with company instructions. (Paras 8-12, 25-30)

Findings of Court: The evidence sufficiently established that the claimant was responsible for safeguarding the petty cash and did not follow set protocols, leading to a justified dismissal. (Paras 54, 71)

Issues: Whether the claimant's failure to secure cash constituted proper grounds for dismissal and whether the company had just cause under the law. (Paras 40, 41)

Ratio Decidendi: Court ruled the respondent failed to keep the key with her, violating clear directives and resulting in financial loss, thereby justifying termination. (Paras 53, 71)

Result: Claimant's claim for reinstatement and backwages dismissed.

AWARD

Noor Azzah Abdul Aziz:

[1] The Ministerial reference in this case required the Court to hear and determine the claimant's complaint of dismissal by the company on 4 December 2019 and was received by the Industrial Court on 13 December 2019.

[2] Hearing of this case commenced on 17 November 2021 and concluded on 18 November 2021. In this trial, the following witnesses have been called by the parties:

(a) The claimant's witness:

CLW-1 : Ms Teh Peng Peng, the claimant, former Account Senior Executive of the company.

(b) The company's witness:

COW-1 : Mr Hor Kuang Siang, Managing Director of the company.

COW-2 : Mr Chau Kea Swee, former General Manager of the company.

COW-3 : Ms Noorfarhana binti Shamsuri, Material Management Manager of the company.

COW-4 : Mr Koh Thong Haw, Project Manager of the company.

COW-5 : Mr Sri Ramachandran a/l Parasuraman, Production Manager of the company.

COW-6 : Encik Yusri bin Musa, Quality Assistant Manager of the company.

[3] This Court had considered all the notes of proceedings in this matter, and the following documents in handing down this Award:

(a) Pleadings

(i) Claimant's Statement of Case dated 18 July 2021;

(ii) Company's Statement in Reply dated 26 August 2021;

(iii) Claimant's Rejoinder dated 5 October 2021.

(b) Bundles of Documents

(i) claimant's Bundle of Documents 1 marked as "CLB-1";

(ii) company's Bundle of Documents 1 marked as "COB-1".

(c) Witness Statements

(i) Claimant's Witness Statement of Teh Peng Peng marked as "CLWS-1";

(ii) Company's Witness Statement of Hor Kuang Siang marked as "COWS-1";

(iii) Company's Witness Statement of Chau Kea Swee marked as "COWS-2";

(iv) Company's Witness Statement of Noorfarhana binti Shamsuri marked as "COWS-3";

(v) Company's Witness Statement of Koh Thong Haw marked as "COWS-4";

(vi) company's Witness Statement of Sri Ramachandran a/l Parasuraman marked as "COWS-5";

(vii) company's Witness Statement of Yusri bin Musa marked as "COWS-6".

(d) Written Submissions

(i) company's Written Submission dated 7 September 2021;

(ii) claimant's Submission dated 8 December 2021;

(iii) company's Submission In Reply dated 21 December 2021;

(iv) claimant's Submission In Reply dated 22 December 2021.

A. Factual Matrix

[4] The dispute before this Court is the claim by the claimant that she had been dismissed from her employment without just cause or excuse by the company on 4 December 2019.

[5] The company carries on the business of manufacturing of finished plastic products.

[6] The claimant was employed by the company as an Account Senior Executive on 1 August 2017 with her basic salary was RM3,700.00 per month. The terms and conditions of her employment are as stated in the Letter of Appointment. The claimant's last drawn salary was RM4,000.00 per month.

[7] The claimant's scope of duties as an Account Senior Executive were to collect supplier's invoices, check the bills, check the figures and quantities on the purchase orders by the company and suppliers' invoices and to check the figures on the company's invoices. Apart from that, the claimant was also entrusted to handle petty cash for expenses and/or claim reimbursement by the employees of the company. The claimant was required to keep the petty cash safely for use in the daily operation of the company for small expenses.

[8] On 4 November 2019, there was a break-in at the company's office in the factory at Lot 8985, Off Jalan Ikan Bawal, Telok Gong, 42000 Pelabuhan Klang, Selangor. When inspection of the office was conducted, the company found that the safe box containing petty cash which was in the custody and control of the claimant at all times, was opened with the key left beside the safe box. Petty cash amounting to RM5,654.75 was missing and suspected to be stolen.

[9] The company issued a show cause letter dated 14 November 2019 to the claimant for her failure to keep safely the petty cash and to keep safely with her the key to the safe box resulting in the company suffering financial loss during the break-in at the company's off

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