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2023 MarsdenLR 991
INDUSTRIAL COURT KUALA LUMPUR
MATTHEW FRANCIS – Appellant
Versus
LF LOGISTICS SERVICES (M) SDN BHD – Respondent
Award No: 2393 Of 2023 [Case No: 11/4-153/22]
The dismissal of an employee is deemed unjustified if the employer fails to prove misconduct on the balance of probabilities, emphasizing the burden of proof rests with the employer.
Headnote:(A) Industrial Relations Act 1967 - Section 20(3) - Dismissal of employee - Termination deemed without just cause or excuse - Claimant dismissed for alleged misconduct including theft of company property - Company failed to prove misconduct on balance of probabilities - Domestic inquiry called off without findings - Claimant entitled to compensation. (Paras 40, 41, 46)
(B) Burden of Proof - The burden lies on the employer to prove that dismissal was with just cause or excuse, and the standard of proof is on the balance of probabilities. (Paras 18, 20)
Facts of the case:
The Claimant was employed in various roles since 2001 and was dismissed on 1 April 2021 for alleged misconduct related to unauthorized disposal of pallets. The Claimant contended he had received authorization for his actions. (Paras 5, 11, 40)
Findings of Court:
The Court found that the dismissal was without just cause as the Company failed to provide sufficient evidence of misconduct. (Paras 40, 43)
Issues: Whether the Claimant was authorized to dispose of pallets and whether the dismissal was justified. (Paras 25, 39)
Ratio Decidendi: The Court held that the Company did not prove the Claimant's misconduct on the balance of probabilities, thus the dismissal was unjustified. (Paras 39, 40)
Result: Claimant awarded RM104,333.00 in compensation. (Paras 47)
| Table of Content |
|---|
| 1. reference and factual background of the case. (Para 1 , 2 , 3 , 4 , 5) |
| 2. company's justification for dismissal due to misconduct. (Para 6 , 7 , 8 , 9 , 10) |
| 3. claimant's defense and performance history. (Para 11 , 12 , 13 , 14 , 15) |
| 4. burden of proof and standard of proof in dismissal cases. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23) |
| 5. authorization issues regarding the disposal of pallets. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33) |
| 6. court's findings on misconduct and dismissal justification. (Para 34 , 35 , 36 , 37 , 38 , 39) |
| 7. court's conclusion and order for compensation. (Para 40 , 41 , 42 , 43 , 44 , 45 , 46) |
Reference
[1] This is a reference from the Director General for Industrial Relations to the Industrial Court of Malaysia under s 20(3) of the Industrial Relations Act 1967 [Act 177] in respect of the dismissal of MATTHEW A/L FRANCIS ("the Claimant") by LF LOGISTICS SERVICES (M) SDN BHD ("the Company") on 1 April 2021.
[2] This matter was heard on 13 July 2023. The Company's counsel filed the Company's Written Submissions on 14 August 2023 and Submissions in Reply on 29 August 2023. Whilst the Claimant's counsel duly filed the Claimant's Written Submissions on 14 August 2023 and Submissions in Reply on 31 August 2023.
[3] In handing down this Award the following were considered by the Court:
(a) the record of proceedings;
(b) the notes of proceedings;
(c) Statement of Case dated 29 April 2022;
(d) Statement in Reply dated 13 May 2022;
(e) Rejoinder dated 20 May 2022;
(f) Statutory Declaration filed by the Company dated 11 th August 2023;
(g) the Claimant's Bundle of Documents marked as CLB1;
(h) the Company's Bundles of Documents marked as COB1 and COB2;
(i) the Claimant's Written Submissions dated 14 August 2023;
(j) the Company's Written Submissions dated 14 August 2023;
(k) the Claimant's Submissions in Reply dated 31 August 2023; and
(l) the Company's Submissions in Reply dated 29 August 2023.
[4] The Company called three (3) witnesses ie Sally Chan Pek Yuen ("COWS-1"), John Davison A/L Chandran ("COWS-2") and Faransis A/L Rasu ("COWS-3"). Whilst the Claimant testified as the sole witness in this Case.
Background Facts
[5] Based on the pleadings and bundles of documents, this Court takes note of the following:
(a) the Claimant commenced his employment at Sitt Tatt Logistics Sdn Bhd on 21 December 2001 as a Warehouse Assistant 3 with a basic salary of RM900.00 per month to be based at Sitt Tatt Logistics Sdn Bhd's office located at 43 - 44, Lengkuk Keluli 1, Kawasan Perindustrian Bukit Raja Selatan, Seksyen 7, 40000 Shah Alam. The Claimant's terms and conditions of employment are as per the letter of offer dated 4 January 2002;
(b) subsequently, vide a letter of transfer dated 19 April 2011, the Claimant was then transferred to BR2-Document Storage of IDS Enterprises Sdn Bhd with effect from 25 April 2011. The letter of transfer was signed by the Manager - Compensation & Benefit of IDS Enterprises Sdn Bhd This Court further notes the following details appear at the top right hand corner of the header of the said letter:
"IDS Enterprises Sdn Bhd (64202-M)
(fka Sitt Tatt Logistics Sdn Bhd)
43 - 44, Lengkuk Keluli 1,
Kaw Perindustrian Bukit Raja Selatan
Sek 7, 40000 Shah Alam, Selangor Darul Ehsan
Tel (603) 3343 7151
Fax (603) 3343 7150
www.idsgroup.com"
(c) based on the abovementioned details, it is noted that Sitt Tatt Logistics Sdn Bhd had undergone a name change ie renamed as IDS Enterprises Sdn Bhd;
(d) vide letter dated 3 July 2012 to KWSP from Assistant Manager - Human Resources, LF Logistics Development (M) Sdn Bhd, the Claimant was confirmed as an employee of LF Logistics Development (M) Sdn Bhd since 21 December 2001 holding a position of Operator III - Operations with a basic salary of RM1,736.00 per month;
(e) the following details appear in the center of the footer of the aforementioned letter:
"LF Logistics Development (M) Sdn Bhd (64202-M)
(fka IDS Enterprises Sdn Bhd)
No 2, Jalan Tanjung Ke
