Industrial Court Case 1
Industrial Court Case 1
Industrial Court Case 1
BETWEEN
AND
1
Reference:
The reference under Section 20(3) of the Industrial Relations Act 1967 by
AWARD
Brief Facts
27.10.1981.
2
3
4. The DI against the Claimant did not commence as scheduled on
admitted to the hospital. The DI was then postponed the second time to
4
5. The DI against the Claimant commenced on 27.09.2017 wherein the
Claimant pleaded not guilty to the charges of misconduct preferred against him.
Pendakwa Tatatertib” and all other matters, including the nature and
writing the outcome of the DI and the punishment of dismissal that was imposed
upon the Claimant with effect from 07.02.2018. By the same letter, the Claimant
was also informed of his right to appeal to the “Jawatankuasa Rayuan Tatatertib
Bagi Kumpulan Bukan Eksekutif TNB” (Disciplinary Appeals Committee for Non-
5
Executive Staff) (hereinafter referred to as “the Disciplinary Appeals
Committee”) against the punishment imposed on him within fifteen (15) days
6
9. By a letter dated 21.02.2018, the Claimant appealed to the Disciplinary
Disciplinary Committee.
10. By a letter dated 23.04.2018, the Claimant was informed that his
appeal was rejected and that the punishment of dismissal from service was
maintained.
premise of a Chinese Temple bearing the address TL PM 70/4 Lot 1244, Kg. No.
15, PT Besar, Jalan Keluang, Batu Pahat, Johor (hereinafter referred to as “said
premise”).
12. During the said inspection on 20.10.2016, the SEAL Team, South Zone
found a meter installed at the said premise with illegal electricity supply
connection as the said premise was not registered in the Company’s system.
The SEAL Team then removed the meter from the said premise and
7
13. The owner of the said premise, one Mr. Koh Kim Gan informed the
Claimant about the inspection and removal of meter conducted by the SEAL
Team. Then, on the same day which was on 20.10.2016, the Claimant had
visited the said premise and fixed direct electricity connection without a meter.
The electricity connection was fixed without the Company’s permission or its
authorisation.
14. On 07.02.2017, the SEAL Team visited the said premise for another
inspection and again found illegal electricity connected without a meter. Mr. Koh
Kim Gan informed the Company that he had tried to apply for user registration
with the Company, however he was approached by the Claimant who promised
him that he would assist in the user application with the Company and asked for
Company, specific charges of misconduct against the Claimant were drafted and
an inquiry was carried out to determine whether the Claimant was guilty on all
16. The Claimant was given the opportunity to exculpate and or defend
himself against all the charges preferred against him throughout the inquiry
8
including adducing relevant evidence or documents to support his defence on
17. Based on the findings of the DI held against the Claimant, the Company
decided to dismiss the Claimant from his employment as the Company felt that
18. The Company had called five (5) witnesses to give evidence in support
(iv) Nor Halim bin Hayon (COW-4) – “Pengurus LPC Billing” in the
Company
9
The Claimant’s case
19. In the Claimant’s written submission, the Claimant had raised his
Company was said to have breached the principle of natural justice for the
following reasons:
(i) The Company failed to give the Claimant the opportunity and fail to
(ii) The Claimant was denied the right to be present and present his case
(iii) The Company failed to produce the qualification of the members in the
Appeal Committee.
20. Whether the Company had succeeded in establishing all the charges
drafted against the Claimant. As such, the Claimant in this case had declared
and submitted that he has no case to answer and in his submission to the court
had quoted the case of UN Pandey v Hotel Marco Polo [1980] 1 MLJ 4 which
states:
10
“On the subject of no case to answer, a summary of the practice
The last time the practice was judicially considered is in the Court
at its face value, no case has been established in law, and in the
unreliable that the court should find that the burden of proof has
have a young legal profession and a fused one. Most are small
11
hearing. Altogether, the practice will bring about a saving of
21. Since the Claimant had declared that he has no case to answer, he did
not produce any witnesses to substantiate his case. The Claimant himself chose
not to give any evidence. The Claimant’s written submission also made no
mention of and had not addressed all the explanations, defences and
statements made in his pleadings prior to the written submission. As such, the
court is of the opinion that the Claimant in the light of his stand of no case to
07.02.2018.
23. The Industrial Court is required at the onset to examine the notes of the DI
and verify whether the DI was valid, whether the notes were accurate and
whether a prima facie case has been made out against the Claimant
12
“ The Industrial Court's jurisdiction, in instances where a domestic
inquiry has been held, was limited to considering whether there
was a prima facie case against an employee. Thus, in the present
case, the Industrial Court should have first considered whether or
not the domestic inquiry was valid and the notes accurate. In the
absence of such considerations, the Industrial Court's action in
proceeding to decide the matter without any regard to the notes of
inquiry could not be described as anything more than an error of
law.”
24. The Claimant had contended that the DI was conducted in breach of the
rules of Natural Justice. This court refers to the case of Kahan Singh v. Air
Asia Berhad [2015] 2 LNS 1303 (Award No. 1303 of 2015) where the
13
2) The rule against bias; or nemo judex in causa sua
meaning no one should be a judge in his own cause...”
25. The concept stated in the case of Skypak International (M) Sdn Bhd v.
Foong Kah Tin [1987] 1 ILR 495 (Award No. 161 of 1987) is also being
14
26. The Claimant’s contention that the DI was in breach of natural justice
because the Company failed to give the Claimant the opportunity and fail to
Understanding The Process at page 207, the author had stated the
following:
DI panel members as shown above can also be found in the book, Law of
15
Dismissal by Nalini Pathmanathan, Siva Kumar Kanagasabai and
29. In this case, based on the “Surat Tuduhan” dated 05.06.2017, the
contents of the letter shows that the Claimant had been informed that he was
allowed to produce inter alia witnesses in order to assist him in establishing his
30. The Company had called the Chairman of the DI (COW-1) to testify at the
hearing and according to him, the Claimant was represented at the DI as stated
16
Abdullah dan Setiausaha Kewangan/Pengerusi Tatatertib KPPP
Based on the evidence given by COW-1 as stated above, the court is of the view
that since the Claimant was indeed represented at the DI, his claim that he was
not informed and reminded to call witnesses for the DI has very little weight to it.
The Claimant has also not produced any evidence to substantiate this
allegation. Therefore, it is the court’s view that the DI proceeding is valid and not
31. Nevertheless, be as it may, the evaluation and findings on this matter will
thus be premised upon the evidence adduced and admitted during the course of
the hearing before the court as guided by the case of Dreamland Corp (M) Sdn
Bhd v. Choong Chin Sooi & Industrial Court Of Malaysia [1988] 1 CLJ 1;
17
dismissing or discharging a workman it is open to him to
justify his action before the Tribunal by leading all relevant
evidence before it. The entire matter would be open
before the Tribunal. It will have jurisdiction not only to go
into the limited questions open to a Tribunal where
domestic enquiry has been properly held, but also to
satisfy itself on the facts adduced before it by the
employer whether the dismissal or discharge was justified.
The important effect of omission to hold an enquiry is
merely that the Tribunal would not have to consider only
whether there was a prima facie case but would decide for
itself on the evidence adduced whether the charges have
really been made out.”
32. The court is also guided by the principles enunciated in the case of
Hong Leong Equipment Sdn. Bhd. v. Liew Fook Chuan & Other Appeals
[1997] 1 CLJ 665; where Gopal Sri Ram JCA as he then was said the following:
18
The Issues
33. Based on both the parties' case as stated above, it is apparent that the two
34. As stated in the case of Wong Chee Hong v. Cathay Organisation (M)
Sdn. Bhd. [1988] 1 CLJ 45; [1988] 1 CLJ (Rep) 298 by the then Supreme
Court as follows:
35. In this case, the fact of dismissal is not disputed. Therefore, the only issue
which is left to be deliberated before this court is whether the dismissal of the
36. Having established that there is a dismissal, the principals in the Federal
Court case of Wong Yuen Hock v Syarikat Hong Leong Assurance Sdn.
19
Bhd. & Anor [1995] CLJ 344 is now being referred. In this case it was held
that :-
“On the authorities, we were of the view that the main and only
function of the Industrial Court is dealing with a reference under
section 20 of the Act (unless otherwise lawfully provided by the
terms of the reference), is to determine whether the misconduct or
irregularities complained of by the Management as the grounds of
dismissal were in fact committed by the workman, and if so,
whether such grounds constitute just cause or excuse for the
dismissal.”
37. Based on the foregoing para 33 - 36 herein above, this court has a duty to
consider the followings:-
The Law
38. In the case of Shell Malaysia Trading Co. Sdn Bhd v. National Union of
Petroleum & Chemical Industry Workers [1986] 1 ILR 677, the Industrial
20
Court stated that:
Subramaniam James [1995] 2 ILR 11 (Award No. 245 of 1995) the following
was stated:
21
cause and excuse for taking the decision to impose the
disciplinary measure of dismissal upon the employee. The just
cause must be, either a misconduct, negligence or poor
performance based on the facts of the case.”
40. Having the burden of proving, the standard in which the employer has to
prove that the act of terminating the employee was carried out with just cause or
Krishnan Kutty Sanguni Nair & Anor [2002] 3 CLJ 314, wherein it was stated
as follows:-
22
balance of probabilities, which is flexible, so that the degree of
probability required is proportionate to the nature of gravity of the
issue.
As such, there is no question of the employer proving that the
employee had committed the offence beyond reasonable doubt.
There is ample authority for saying that the test is not whether the
employee did it but whether the employer acted reasonably in
thinking the employee did it (see: Ferado Ltd. v. Barnes [1976] 439
ICR). In order for the employer to establish reasonable grounds,
they must show that they had made reasonable enquiries and did
not form their belief hastily and that they had given employee a
fair opportunity to explain himself (see: W. Weddel & Co. Ltd. v.
Tepper[1980] IRLR 76).”
41. As a Court of arbitration, Section 30(5) of the Industrial Relations Act 1967
(Act 1977) requires the Court to decide a case in accordance with equity and
good conscience. Gopal Sri Ram JCA's decision in Harris Solid States (M)
Sdn Bhd & Ors v. Bruno Gentil Pereira & Ors (1996) 4 CLJ 747 CA had
stated that it is incumbent upon the court to have regard to substantial merits of
42. Since the court heard the case afresh, whether the Claimant has
23
pleadings and evidence produced in court. It is trite that the Claimant is not the
one who must prove that he was not guilty of misconduct [see the case of
No. 263 of 1985). That burden is cast squarely upon the Company.
43. On the first and second charges drafted against the Claimant, the first
paragraphs of both the charges bears the alleged conduct whilst the rest of the
paragraphs of the charges are the breaches due to the conduct which
case to answer at the hearing in this court, the evidence given by the Company
44. On both these charges, the Claimant had himself admitted that he did take
the monies as per stated in the charges from one Koh Kim Gan in both the
below:
during investigation)
24
“S.5: Seorang pengguna bernama Encik Koh Kim Gan, pemilik
Lot 1244 Kg, No. 15, Parit Besar, Jalan Kluang, Batu
25
*******************
13. PB: Dari dokumen atau ekshibit yang dibentangkan, Encik Umar ada
sebelum ini, tetapi pengguna ini Encik Koh, saya rasa dia
RM4,500.00
STI: Setuju.
Encik Koh?
26
STI: Pada saya.
tokong.
STI: Setuju.
STI: Setuju.”
45. The Company also produced a video recording of the Claimant receiving
and counting the monies given to him by Koh Kim Gan. COW-2 had given
“ Examination-in-chief of COW-2
27
Q: Sila rujuk jawapan anda di soalan nombor 8 pada
Penyata Saksi anda dan video yang telah dimainkan.
Kenapa anda mengatakan bahawa Encik Koh Kim
Gan menyerahkan wang kepada Yang Menuntut tetapi
video tersebut hanya menunjukkan Yang Menuntut
sedang mengira duit?
Re-examination of COW-2
28
46. Based on the video recording and the Claimant’s own admission of
receiving the monies as per stated in both the first and second charges, the
conduct of the Claimant has been established. Since the Claimant had not
produced any evidence to show that he had the authority to receive the monies
from Koh Kim Gan, by his conduct the Company has established the breaches
he had committd via his conduct which tantamount to a misconduct as per the
allegation made against him. As such, the court is of the view that the Company
has successfully established the allegations made against the Claimant for both
47. As for the third charge, the Claimant had admitted to the conduct as
ST1: Setuju.
29
tokong Encik Koh semasa lawatan Encik Nor Halim
Feb 2017.
ST1: Setuju.”
48. Since the Claimant had admitted to carrying out this conduct which
49. In this case, the Company had not only drafted all three (3) charges
against the Claimant describing the alleged conduct of the Claimant but had
also listed down for each charge the breaches committed by such a conduct
Tenaga Nasional Berhad (Edisi Keenam, 2013) as listed in all the three (3)
charges respectively. In the case of Arkema Pte. Ltd [Formerly Known As Elf
[2009] 2 LNS 0738, wherein the Claimant was found guilty of demanding and
receiving monies from the Company’s agent, the Industrial Court held that the
30
“27. Here, in this case the Claimant had received money
from the agent and had received the said money for
the case, this Court finds that the dismissal of the Claimant
50. With regards to the Third Charge i.e causing direct electrical connections
Hanifullah [2003] 3 ILR 743 is being referred to as the Industrial Court in this
31
“[3] The illegal connection of electricity without installation
of the claimant.
51. As such, the court concurs with the Company’s submission that the
Claimant’s action of taking and receiving monies from the Customer (the First
Charge and the Second Charge) and causing direct electrical connections
without a meter without the Company’s permission (the Third Charge) are acts
broken the trust and confidence of the Company towards the Claimant as one of
32
"The relation between an employer and an employee is of a fiduciary
trust that the worker will faithfully discharge the service and protect
53. In Pearce v. Foster [1886] (vol XV11) QBD 536 the Queen's Bench
"The rule of law is that where a person has entered into the position
discharge of his duty to his master, the latter has a right to dismiss
him. The relation of master and servant implies necessarily that the
and if by his own act he prevents himself from doing so, the master
immediate dismissal."
33
54. Therefore, by a careful assessment of the evidence taken as a whole,
grounded upon equity, good conscience and the substantial merits of this case
pursuant to Section 30(5) of the Industrial Relations Act 1967, it is the finding of
the court that the Company has established, on a balance of probabilities, the
employment.
Cases referred to :
3. Kahan Singh v. Air Asia Berhad [2015] 2 LNS 1303 (Award No. 1303 of
2015)
5. Skypak International (M) Sdn Bhd v. Foong Kah Tin [1987] 1 ILR 495
(Award No. 161 of 1987)
34
6. Maimunah Aminuddin’s Termination of Employment, Understanding The
Process at page 207
8. Dreamland Corp (M) Sdn Bhd v. Choong Chin Sooi & Industrial Court Of
Malaysia [1988] 1 CLJ 1; [1988] 1 CLJ (Rep) 39
9. Hong Leong Equipment Sdn. Bhd. v. Liew Fook Chuan & Other Appeals
[1997] 1 CLJ 665
10. Wong Chee Hong v. Cathay Organisation (M) Sdn. Bhd. [1988] 1 CLJ 45;
[1988] 1 CLJ (Rep) 298
11. Wong Yuen Hock v Syarikat Hong Leong Assurance Sdn. Bhd. & Anor
[1995] CLJ 344
12. Shell Malaysia Trading Co. Sdn Bhd v. National Union of Petroleum &
Chemical Industry Workers [1986] 1 ILR 677
14. Telekom Malaysia Kawasan Utara v. Krishnan Kutty Sanguni Nair & Anor
[2002] 3 CLJ 31
15. Harris Solid States (M) Sdn Bhd & Ors v. Bruno Gentil Pereira & Ors
(1996) 4 CLJ 747 CA
16. Stamford Executive Centre v. Dharsini Ganesan [1986] 1 ILR 101 (Award
No. 263 of 1985)
35
17. Arkema Pte. Ltd [Formerly Known As Elf Atochem SA Representative
Office, Malaysia] & Anor v Tang Swee Nien [2009] 2 LNS 0738
20. Pearce v. Foster [1886] (vol XV11) QBD 536 the Queen's Bench Division
( SUMATHI MURUGIAH )
CHAIRMAN
INDUSTRIAL COURT OF MALAYSIA
JOHOR
36