Kota Kinabalu: The Kota Kinabalu Industrial Court awarded an accountant RM97,999.95 for wrongful termination by Cassava Integrated Eco Mill Sdn Bhd.
In the decision on May 28, Industrial Court Sabah Chairman Datuk Indra Haji Ayub awarded the sum to Joseph Jebarajah a/l Naesarajoo, after finding he had been dismissed without just cause or excuse.
The Court was satisfied that since the company failed to prove the alleged misconduct on a balance of probabilities, the termination was unjust.
It said even if the claimant had committed alleged misconduct, he could have been dealt with appropriately with a proper management system.
The company could also have opted for other lesser forms of penalty instead of taking drastic steps by terminating.
“The award in a total sum of RM97,999.95, less statutory deductions, if any, shall be paid by the company to the claimant on or before 28th July 2025 with interest of 8 per cent to be calculated from 29 June 2025 until full and final settlement,” said Indra.
The claimant was employed as an accountant since July 1, 2022. The services was terminated effective April 11, 2023.
In a letter dated 11.04. 2023, the company’s Managing Director Datuk Ir Jim Rajaratnam, cited absconding from April 3 to 7 and not following the working hours stipulated in the appointment letter as the grounds for immediate termination.
The claimant, however, held that the termination was unlawful and/or was in breach of the principles of natural justice and/or unfair labour practice and/or was unlawful and/or victimised and to hand down an appropriate Award.
Although the company categorically denied the termination was without just cause or excuse, it failed to show up on Jan. 20, this year to challenge or testify against the claimant.
On March 20, the company applied for the case to be retried and for any orders, decisions or awards made in its absence to be set aside.
However, the court dismissed the application in an Interim award dated May 26, finding that based on the relevant notes of proceeding during the pre-trial case management attended by both parties, they were notified on the date of the trial.
The Court noted that the claimant, before his dismissal, was never issued a show cause letter by the company informing him of the allegations of misconduct.
The claimant was also not given sufficient opportunity to explain and to defend himself as his services was terminated with immediate effect, without the conduct of a Domestic Inquiry and without adhering to the termination clause in the claimant’s Letter of Offer dated June 15, 2022, which required a three-month notice from either party.
The claimant was also not given the right to mitigate, as well as the right to appeal against the decision of the company.
Hence, the Court was satisfied that there was an issue of procedural fairness, as the company had failed to adopt a reasonable procedure in dismissing the Claimant.
“There was a lack of procedural fairness as well as a procedural breach of natural justice. The termination is now rendered unjust and unlawful,” held the Court.
