A bank may dismiss a senior officer for financial disqualifications under the IFSA 2013, establishing just cause for termination if the officer's financial irregularities threaten the bank's integrity.

[1] The Ministerial reference in this case required the court to hear and determine the claimant's complaint of dismissal by the Bank on 15 January 2014 and was received by the Industrial court on 19 January 2015.

[2] The hearing of this reference was commenced by YA Tuan Gulam Muhiaddeen Abdul Aziz who had since then been transferred to another court. Both parties had no objections for the hearing to continue before me. The last submission was filed on 25 September 2017. Hence, as Chairman of court 12, I have written this award based on my observation of the claimant under cross-examination and re-examination as well as perusal and evaluation of the facts and evidence contained in the notes of proceedings and from the documents made available to the court.

Factual Matrix

[3] The claimant's claim was that he had been dismissed from his employment by the Bank on 15 January 2014 after having worked there for slightly more than two years. The claimant had served the Bank as its General Manager of Global Islamic Markets. His last monthly drawn salary was RM49,000.00 with fixed monthly allowances totalling RM5,570.00. The claimant claimed that he was a committed worker and was responsible for increasing the income of the Bank's treasury activities.

[4] Prior to starting work with the Bank, the claimant had made several personal investments, some of which turned sour and therefore he had to face considerable difficulty in settling debts relating to his personal investments. However, the claimant claimed that whilst he was in the process of taking steps to clear all outstanding debts, his records was entered into the Credit Tip-Off Service (CTOS) credit report. CTOS is a credit reporting agency registered under the Credit Reporting Agencies Act 2010. Its information system is widely used by many of the country's financial institutions, commercial businesses and legal firms.

[5] Sometime in May 2013, the Bank was made aware of the claimant's financial liabilities through a CTOS search which included several pending civil suits against the claimant. The Bank issued him a letter dated 13 May 2013 to resolve his financial liabilities within six months from the date of the letter The Bank contended that it had to do so as the claimant, by virtue of those financial liabilities, was in breach of the provisions of subsection 68(1)(a) of the Islamic Financial Services Act 2013 [Act 759]. The Bank had warned the claimant that if he failed to resolve the matter, the Bank would have no option but to terminate his employment on the grounds of non-compliance and contravention of its Code of Conduct and the provisions of Act 759.

[6] At the expiry of the six months' period, the Bank accorded the claimant some more time to clear his financial indebtedness as there was signs of improvement on the claimant's part. The three months' extension was given until 31 March 2014.

[7] However, the Bank discovered two additional civil suits against the claimant and he had also been detained for one day pursuant to a committal proceeding in the High court. The Bank, alarmed by this new development, terminated the claimant's employment vide a letter dated 15 January 2014 with immediate effect as it could not maintain him in its employment any longer.

Fact Of Dismissal

[8] The claimant prays that this court holds his dismissal as being without just cause or excuse, an unfair labour practice and was carried out mala fide purely as an act of victimisation and is therefore unlawful. The claimant prays for reinstatement to his former position without loss of wages, benefits and seniority or any other relief that the court deems fit and proper.

[9] The claimant made his representation under s 20 of Act 177 and where