The employer must prove just cause for termination; failure to substantiate allegations of misconduct renders the dismissal unlawful.

AWARD

Vanithamany Sivalingam

Reference

[1] This is a reference by the Honorable Minister of Human Resource, Malaysia to this Industrial Court under s 20(3) of the Industrial Relations Act 1967 ("The Act") for an award in respect of the dispute arising out of alleged termination due to misconduct of BALMUS PETRU ("The 1st Claimant") and FEDARENKA NATALLIA ("2nd Claimant") by their employer, LOKUS MEDICAL (M) SDN BHD ("The Company").

[2] This Court takes cognizance of the following bundles, statements, submission, and cause papers filed.

Documents In Court Files

[3] The Court takes cognizance of the followings papers and documents files:

i) Statement of case of 1st Claimant dated 30 October 2019

ii) Statement of case of 2nd Claimant dated 18 December 2019

iii) Statement In Reply 1st Claimant dated 2 December 2019

iv) Statement In Reply 2nd Claimant dated 10 January 2020

v) Rejoinder 1st Claimant dated 9 December 2019

vi) Rejoinder 2nd Claimant dated 17 January 2020

vii) Claimant's Bundle of Documents (CLB1, CLB2, CLB3, CLB4)

viii) Company's Bundle of Documents (COB1,COB2, COB3, COB4, COB5, COB6, COB7, COB8, COB9, COB10, COB11)

ix) The Claimant's Witness Statement of BALMUS PETRU (CLWS1)

x) The Claimant's Witness Statement of FEDARENKA NATALLIA (CLWS2)

xi) The Company's Witness Statement of WONG POW LAI (COWS1)

xii) The Company's Witness Statement of PUNITHARAJAN A/L SUNDARESAN (COWS2)

xiii) The Company's Witness Statement of WONG TSU KIM (COWS3)

xiv) The Company Written Submission dated 5 February 2024

xv) The Company Reply Submission dated 8 March 2024

xvi) The 1st Claimant's Written Submission dated 5 February 2024

xvii) The 2nd Claimant's Written Submission dated 5 February 2024

xviii) The 1st Claimant's Written Submission in Reply dated 12 March 2024

xix) The 2nd Claimant's Written Submission in Reply dated 12 March 2024

xx) Company's Bundle of Authorities

xxi) Claimant's Bundle of Authorities

xxii) Claimant's Additional Bundle of Authorities

[4] This case has been consolidated pursuant to a Court Award No 1390 of 2020.

[5] An application to consolidate Case No 7/4-1575/19 (Balmus Petru v. Lokus Medical (M) Sdn Bhd) and Case No 14/4-1901/19 (Faderenka Natallia v. Lokus Medical (M) Sdn Bhd) was filed by the Claimants' counsel via encl 30. The Company had no objection to this application for consolidation. By the Court Award No 1390 of 2020, the case of 7/4-1575/19 has been ordered to be consolidated with the Case No 14/4-1901/19. Balmus Petru referred to as the 1st Claimant and Faderenka Natallia as the 2nd Claimant for the purposes of this Award.

Brief Facts

The 1st Claimant's Case

[6] The 1st Claimant joined the Company on 11 January 2019 as Technical and Production Manager with the salary of RM7,000.00. On 31 May 2019, the 1st Claimant received a termination letter from the Company giving the 1st Claimant 24 hours to leave the Company. The 1st Claimant's alleged conducts were:

i) that the Company had allegedly found the 1st Claimant guilty of serious misconduct that had led to the breach of his employment resulting to his termination;

ii) during his tenure as Technical and Production Manager, the 1st Claimant has disrupted the co-operation between the Company and its various business partners, namely Alliance Contract Manufacturing Sdn Bhd;

iii) the 1st Claimant had allegedly conspired with various named third party to disrupt the business relationship of the Company and its business partners.

[7] The 1st Claimant received an email from Dickson Wong ("COW1") which highlighted the above allegations. The 1st Claimant stated that such allegations were baseless and unfounded for. The 1st Claimant stated that the allegations were based on a misunderstanding regarding the job scope and duties of the 1st Claimant towards the Company. The 1st Claimant reiterates that at all material times, the 1st Claimant discharged his duties and obligations in accordance with the contract of employment.

[8] The Company held 2 days of Domestic Inquiry ("DI") on 7 April 2019 and 8