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2024 MarsdenLR 1692
INDUSTRIAL COURT SABAH
VELARIE LESLIE HARRY – Appellant
Versus
MALAYSIA AIRPORTS HOLDINGS BHD – Respondent
Award No: 511 of 2024 [Case No: 17/4-769/21]
The employer must prove misconduct for dismissal; failure to do so renders the dismissal unjustified, emphasizing the importance of proportionality in disciplinary actions.
Headnote:(A) Industrial Relations Act 1967 – Section 20(3) – Dismissal of employee – Claimant dismissed for alleged misuse of medical benefits – Court found dismissal without just cause or excuse – Company failed to prove misconduct on balance of probabilities – Claimant's explanation for medical visits deemed reasonable and supported by evidence – No limits on medical claims established in employment contract. (Paras 12, 36, 40, 72)
(B) Burden of Proof – Employer bears the burden to prove misconduct in dismissal cases – Standard of proof is on balance of probabilities. (Paras 14, 16, 20)
(C) Proportionality of Punishment – Dismissal deemed disproportionate to alleged misconduct – Court emphasized importance of considering employee's service record and circumstances surrounding the case. (Paras 41, 46)
Facts of the case: The Claimant was dismissed from her position as an Aviation Security Assistant on 23 July 2020 for alleged misuse of medical benefits. The Company conducted a Domestic Inquiry and found her guilty of the charges. The Claimant contended that her dismissal was without just cause or excuse. (Paras 1, 9, 12)
Findings of Court: The Court found that the Company failed to establish that the Claimant had committed misconduct and ruled that the dismissal was without just cause or excuse. (Paras 72, 74)
Issues: The main issues included whether the Claimant's dismissal was justified and whether the Company had proven the alleged misconduct. (Paras 21, 22)
Ratio Decidendi: The Court held that the Company did not meet the burden of proof required to justify the dismissal, and the Claimant's explanation for her medical claims was reasonable. (Paras 36, 72)
Result: The Claimant was awarded compensation totaling RM83,957.30, less statutory deductions, with interest. (Paras 81, 82)
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 VELARIE LESLIE HARRY (hereinafter referred to as "the Claimant") by MALAYSIA AIRPORTS HOLDINGS BHD (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 on 23 July 2020 by the Company.
[3] The Claimant commenced her employment with the Company as an Aviation Security Assistant - Grade 11 on 2 May 2013. The Claimant's last post in the Company before the termination of her service was as an Aviation Security Assistant - Grade 12.
[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 the Show Cause Letter dated 19 May 2020, the Company decided to conduct a Domestic Inquiry in order to provide the Claimant an opportunity to put forward her 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 15 July 2020 and pleaded not guilty to the charge. After the conclusion of the Domestic Inquiry, the panel of Domestic Inquiry has 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 submitted that she was unlawfully terminated and that her 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 5 witnesses who testified in Court as follows:
CoW1: Mohd Adib Ismail - the Manager of Industrial Relations - Human Capital Division of the Company. His witness statement was marked as CoWSl.
CoW2: Dayang Ratna Kesmawati Abang Morni - Senior Manager of Corporate Quality Management of the Company/ Chairperson of the Domestic Inquiry. Her witness statement was marked as CoWS2.
CoW3: Captain (B) Mazlan Fauzi - the Senior Manager of 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 PMCare Sdn Bhd. His witness statement was marked as CoWS4.
CLW1: Velarie Leslie Harry - the Claimant. Her witness Statement was marked as CLWS1.
D. Duty
