IN THE INDUSTRIAL COURT OF MALAYSIA BETWEEN FAISAL MACHMUD (CLAIMANT)

AND CMS I-SYSTEMS SDN. BHD.

(RESPONDENT)

AWARD NO: 2265 OF 2023 Before : Y.A. TUAN NAZRI BIN ISMAIL Venue : Industrial Court Malaysia, Sarawak Date of order of : 18.04.2022 reference Date of receipt of : 22.04.2022 order of reference Dates of mention : 25.05.2022, 05.10.2022 Date of hearing : 01.08.2023 Representation For Claimant : Mr Satinder Singh Messrs Sandhu & Co. Advocates For Respondent : Mr Andy Tan Tung Sii Messrs Andy & Associates AWARD REFERENCE This is an order of reference dated 18.04.2022 by the Director General of Industrial Relations Department pursuant to subsection 20(3) of the Industrial Relations Act 1967 arising out of the alleged dismissal of Faisal Machmud (the Claimant) by CMS I-Systems Sdn. Bhd. (the Respondent) on 24.09.2021.

BRIEF FACTS [1] The Company is a subsidiary of Cahya Mata Sarawak Berhad (“CMSB”) and a member of the Cahya Mata Sarawak Group of Companies (“CMS Group”). The Company provides information technology (IT) services and infrastructure to the entire CMS Group.

[2] The Claimant commenced his employment with the Company on 1st December 2004 as a Field Support Engineer, in 2007 as a Field Support Engineer, in 2008 as an IT Services Manager, and in 2020 as an Infrastructure Manager. At the time of his dismissal from the Company on 24.9.2021, the Claimant was an Infrastructure Manager with a last-drawn monthly salary of RM 17,666.00.

[3] During the dismissal, the Claimant was the highest-ranking employee, i.e., Acting Head of the Company.

[4] In 2021, CMSB received allegations of possible financial mismanagement and breach of fiduciary duty by its Group Chief Financial Officer, Syed Hizam Alsagoff, and suspended its Group Chief Financial Officer (GCFO) for investigation.

[5] On 5.5.2021, the Company also suspended the Claimant on full pay for thirty (30) days due to the allegation that the Claimant had a close family relationship with the Group Chief Financial Officer.

[6] By letter dated 28.5.2021, the Company had mandated a Board of Inquiry to inquire into the allegation that the Claimant had a close family relationship with the GCFO. The context of the inquiry was to describe the Claimant's family relationship s with Syed Hizam Alsagoff, to explain why the Claimant was using the name “Faisal Alsagoff” on his LinkedIn account, and to provide a copy of his birth certificate and other official identification documents such as his passport and identity card.

[7] By letter dated 31.5.2021, the Claimant responded to the Company to the questions asked of him.

[8] The Claimant’s suspension was extended four (4) times from 3.6.2021 until 26.9.2021 due to the pending investigations on the Claimant’s alleged close family relationships with Syed Hizam Alsagoff.

[9] On 05.07.2021, further communications ensued between the Board of Inquiry and the Claimant in respect of his relationship with one Sharifah Mahani binti Syed Alwi Alsagoff, whom the Claimant particularised as his biological mother in two (2) forms, namely, the Staff Particulars Form and the Beneficiary Nomination Form.

[10] The Claimant replied via a letter dated 12.07.2021 stating that Sharifah Mahani Binte Syed Alwi Alsagoff was not his biological mother, but the Claimant considered her his mother.

[11] By letter dated 24.9.2021, the Company found that the Claimant had breached Clause 8.2, Sub-section 2.4 of the Group HR Policies and Procedures Manual when he had misrepresented his relationship with Sharifah Mahani Binte Syed Alwi Alsagoff and was dismissed from the Company.

[12] Dissatisfied with the Company’s decision, the Claimant commenced this action. THE LAW Role And Function of The Industrial Court [13] The role of the Industrial Court under section 20 of the Industrial Relations Act 1967 is succinctly explained in the case Milan Auto Sdn Bhd v. Wong Seh Yen [1995] 4 CLJ 449. His Lordship Justice Mohd Azmi bin Kamaruddin FCJ, delivering the judgment of the Federal Court, n