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2025 MarsdenLR 6309




An employee's submission of an unentitled claim, leading to dismissal, constitutes serious misconduct, justifying employer's actions when accompanied by a lack of integrity.

Headnote:(A) Industrial Relations Act - Issues of misconduct and dismissal - The dismissal of the claimant was determined to be without just cause by the Industrial Court, which awarded back wages and compensation; however, upon appeal, the Court of Appeal found the dismissal justified due to lack of integrity and submission of an unentitled claim. (Paras 18, 24, 36-39, 76)

(B) Judicial Review - Scope - The court re-emphasized that the Industrial Court must assess misconduct based on evidence presented and not solely rely on domestic inquiry findings, cautioning against treating findings of domestic inquiry as precedent in judicial review. (Paras 30, 39)

Facts of the case:
The claimant, employed as an Executive, submitted a dental claim under his name for treatment received by his wife, leading to allegations of misconduct. The domestic inquiry found him not guilty of fraud but recommended a reminder penalty. The university dismissed him for serious misconduct.

Findings of Court:
The Court of Appeal concluded the claimant engaged in serious misconduct regarding the submission of an unentitled claim, justifying the university's decision to terminate employment.

Issues: The court addressed: 1) did the Industrial Court properly evaluate the evidence regarding the first charge of misconduct? 2) Is the reliance on domestic inquiry findings appropriate in judicial review contexts?

Ratio Decidendi: The court reasoned that the evidence supported a finding of serious misconduct. Reliance on domestic findings was found erroneous, and dismissal was justified given the claimant's actions undermined the employer's trust.

Result: The appeal by the university is allowed; the High Court's order is set aside, and the award quashed.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
2. industrial court's findings on misconduct. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23)
3. high court's upholding of industrial court's award. (Para 24 , 25 , 26 , 27)
4. judicial review principles related to industrial court cases. (Para 28 , 29 , 30 , 31 , 32 , 33)
5. final court observations on misconduct review. (Para 34 , 35 , 36 , 37 , 38)
6. conclusion affirming dismissal as justified. (Para 76)

Azizah Nawawi JCA:

INTRODUCTION

[1]This appeal is against the decision of the learned High Court judge delivered on 20 January 2020, which had dismissed the appellant’s application for a judicial review to quash the Industrial Court’s Award No 802/2019 dated 27 February 2019.

THE SALIENT FACTS

[2]The appellant (‘university’) is a private university established in 1997 and is a wholly-owned subsidiary of PETRONAS, a national oil and gas company.

[3]The respondent (‘claimant’) was employed by the university as an Executive at the Civil Engineering Department since 1 March 2007.

[4]The university was alerted by AIA, the University’s Group Insurer, regarding one suspicious claim because the name printed on the receipt appears to have been altered.

[2023] 3 MLJ 15 at 21

[5]On the receipt, which triggered the disciplinary action against the claimant, is stated ‘Sh’ and was cancelled and appeared as ‘Sh’. Upon cancelling the words Sh, the claimant’s name appear in full as Amirul Fairuz b Ahmad.

[6]The university was alerted regarding the above-stated discrepancy on the receipt by AIA, vide its letter dated 15 September 2015, which clearly declined the claimant’s claim for a reason ‘Visit Details Could Not Be Validated’.

[7]Thereafter, the university received another letter from AIA, dated 22 September 2015, which clearly stated that AIA found out the claim made by the claimant was actually for a dental treatment received by the claimant’s wife, Sharifah Noorhaliza.

[8]The senior manager of the university’s Human Resources Department, Zamri Bin Yusof, who appeared as COW2 at the trial in the Industrial Court, commenced an investigation into the matter.

[9]Pursuant to the investigation, on 22 October 2015, the university served the claimant with a show cause letter informing him that he had been accused of two charges for misconduct. The two charges preferred against the claimant are as follows:

FIRST CHARGE

[2023] 3 MLJ 15 at 22 That you Amirul Fairuz bin Ahmad (Staff No: 128243), as senior Executive of Institute of Technology PETRONAS Sdn Bhd (ITPSB), on 5 August 2015 had made or attempted to make a fraudulent dental claim for a sum amounting to Ringgit Malaysia Ninety Five Only (RM95) when you submitted the AIA Member Outpatient Claim form dated 5 August 2015, despite the fact that you did not receive such treatment and that the treatment was instead received by your spouse, Sharifah Noorhaliza bt Syed Md Kamal, on 30 May 2015 at Klinik Pergigian Mardhiah, No 91, Jalan Pengkalan Utama 1, Taman Pengkalan Utama, 31660 lpoh, Perak.

You have therefore committed an act of serious misconduct as found under General Rules, Part IV Section 1 Subsection 1.3(v): theft, fraud, misappropriation; and (vi) being dishonest or conducting oneself in such a manner as to lay oneself open to suspicion of dishonesty; of the PETRONAS/ITPSB Code of Conduct & Business Ethics (CoBE). In the event that you are found guilty of the alleged misconduct, you can be imposed with punishment as per Part IV Section 2 of CoBE.

SECOND CHARGE

That you, Amirul Fairuz bin Ahmad (Staff No:128243), as senior Executive of Institute of Technology PETRONAS Sdn Bhd (ITPSB), had instructed the personnel at Klinik Pergigian Mardhiah, No 91, Jalan Pengkalan Utama 1, Taman Pengkalan Utama, 31650 lpoh, Perak, to prepare the receipt (Receipt No: 001206) under your name, for a dental appointment received by your spouse Sharifah Noorhaliza bt Syed Md Kamal on 30 May 2015 to enable you to

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