INDUSTRIAL COURT MALAYSIA CASE NO. 4/4-368/11 BETWEEN ENCIK POOVAN A/L SINNASAMY DAN 1 ORANG PERAYU LAIN AND MALAYSIAN AIRLINE SYSTEM BERHAD AWARD NO. 1068 OF 2014 BEFORE : Y.A. TUAN P IRUTHAYARAJ A/L D PAPPUSAMY Chairman (Sitting alone) VENUE : Mahkamah Perusahaan Malaysia Kuala Lumpur DATE OF REFERENCE: 07.02.2011 DATES OF MENTION : 18.05.2011; 20.06.2011; 10.08.2011; 08.09.2011; 14.12.2011; 02.03.2012; 02.05.2012; 04.05.2012; 18.02.2013; 14.11.2013 DATES OF HEARING : 15.05.2012; 30.05.2012; 31.05.2012; 23.01.2013; 06.11.2013; 07.11.2013; 05.12.2013; 20.12.2013; 24.01.2014; 07.03.2014 DATES OF WRITTEN: SUBMISSIONS Written Submission by the Claimant filed on 15.05.2014; Written Submission by the Company filed on 07.07.2014; Written Submission in Reply by the Claimant filed on 25.07.2014. REPRESENTATION : Mr. Harpajan Singh of Messrs Harpajan S. Khaulsay & Co. represented the Claimants. Mr. Vijayan Venugopal of Messrs Shearn Delamore & Co. represented the Company. REFERENCE : This is a reference by the Honourable Minister of Human Resources under Section 20(3) of the Industrial Relations Act 1967 for an award in respect of a dispute arising out of the dismissal of ENCIK POOVAN A/L SINNASAMY DAN 1 ORANG PERAYU LAIN (hereinafter referred to as “the Claimant”) by MALAYSIAN AIRLINE SYSTEM BERHAD (hereinafter referred to as “the Respondent”). AWARD The parties to the dispute are Encik Poovan a/l Sinnasamy Dan 1 Orang Perayu Lain (“the 1st and 2nd Claimants”) and Malaysian Airline System Berhad (“the Respondent”). The dispute which has been referred to the Industrial Court by way of a Ministerial Reference under Section 20(3) of the Industrial Relations Act 1967 (“the Act”) is over dismissal of the Claimant by the Company on 04.08.2009. Introduction The 1st Claimant’s (Poovan a/l Sinnasamy) claim had been struck off by this Court during the outset of this matter and the case only proceeded with the 2nd Claimant’s (Sarjit Singh a/l Rajinder Singh) claim (hereinafter referred to as “the Claimant”). Brief Background Facts The Claimant joined the Company as a Trainee Aircraft Maintenance Engineer on 01.10.1980. In October 1985, he qualified as a Licensed Aircraft Maintenance Engineer (“LAME”). The Claimant’s main duties and responsibilities as the Lead Engineer – Aircraft Overhaul – Production were to carry out repair, replacement and certification work relating to aircraft maintenance. The Claimant was scheduled to be on duty on 01.06.2009 from 7.45pm (01.06.2009) to 4.45am (02.06.2009) at Hangar 03 MAS Complex A, Sultan Abdul Aziz Shah Airport, Subang. However, it was reported that the Claimant was not at his workplace at 4.05am on 02.06.2009 despite being on duty at that time. Despite not being at the workplace at 4.05 am, the Claimant had in the Attendance Record signed out at 7.00 am on 02.06.2009 and further claimed over time payments from 4.45 am to 7.00am (02.06.2009). It was also reported to the Company that other employees including Poovan a/l Sinnasamy were found to be absent from their workplace and had also made the same overtime claims as the Claimant. Pursuant to the above, the Company issued a letter dated 06.06.2009 to the Claimant seeking an explanation from him with regard to the following:- “It’s been reported that you were not at your workplace at 0405 hrs on Tuesday 02nd June 2009. Based on Daily Attendance record, you’ve signed out at 0700 hrs on the same day.” The Claimant responded to the explanation letter vide letter dated 08.06.2009 wherein he admitted that he was not at his workplace during his scheduled working hours and that he signed off at 7.00am (02.06.2009) despite knowing that he did not work till 7.00am. Pursuant to the explanation provided by the Claimant, the Company had decided to issue a Letter of Allegation wherein the Claimant was required to provide his explanation as to why disciplinary action should not be taken against him for the following charges of misconduct: Charge No.1 “That you, as a Lead Engineer of the Company on 02 June 2009 at Hangar 03 MAS Complex A, Sultan Abdul Aziz Shah Airport, Subang, Selangor, had been absent from your workplace from about 0400 hours without permission whilst rostered for duty from 1945 hours till 0445 hours. You have therefore committed an act of misconduct inconsistent with the fulfillment of your terms and conditions of service with the Company by virtue of Clause 1, Para 1.1 AND Clause 15, Para 15.10 of Appendix A, Acts of Misconduct of the MAS Disciplinary Procedure and such an act of misconduct attracts severe punishment.” Charge No.2 “That you, as a Lead Engineer of the Company on 02 June 2009 at Hangar 03, MAS Complex A, Sultan Abdul Aziz Shah Airport, Subang, Selangor, had made a fraudulent overtime claim from 0445 hours till 0700 hours despite not performing the job whilst rostered for duty from 1945 hours till 0445 hours. You have therefore committed an act of misconduct inconsistent with the fulfillment of your terms and conditions of service with the Company by virtue of Clause 7, Para 7.1, Clause 8, Para 8.1 and Clause 15, Para 15.10 of Appendix A, Acts of Misconduct of the MAS Disciplinary Procedure and such an act of misconduct attracts severe punishment.” The Claimant responded vide letter dated 13.07.2009, wherein he suddenly claimed that he was under duress when he issued the 1 st letter dated 08.06.2009 to the Company. The Company considered the Claimant’s explanation and was of the view that the same was unacceptable and also in view of the Claimant’s earlier admission in his 1st letter to the Company. Due to the seriousness of the misconduct, the Company dismissed him from his services. The Claimant was informed of the Company’s decision vide Punishment Order dated 04.08.2009 and the Claimant was informed that he was entitled to appeal against the decision of the Company to dismiss him. The Claimant submitted his appeal against the decision of the Company to dismiss him vide letter dated 18.09.2009. The Disciplinary Appeal Committee considered the Claimant’s appeal and decided to maintain the decision to dismiss him. As such, vide letter dated 20th October 2009, the Claimant was informed that his appeal was dismissed. Issues The issues for determination are as follows:(a) Whether the Claimant was dismissed by the Company; (b) If so, whether the dismissal of the Claimant by the Company was with just cause or excuse. The Law The function of the Industrial Court has been propounded by Mohd. Azmi FCJ in the Federal Court case of Milan Auto Sdn. Bhd. v Wong She Yen [1995] 4 CLJ 449 (“Milan case”) which is as follows:- “As pointed out by this Court recently in Wong Yuen Hock v Hong Leong Assurance [1995] 3 CLJ 344, the function of the Industrial Court in dismissal cases on a reference under s 20 is twofold: first, to determine whether the misconduct complained of by the employer has been established and secondly whether the proven misconduct constitutes just cause or excuse for the dismissal.” In the case of Goon Kwee Phoy v. J & P Coats (M) Sdn. Bhd. [1981] 2 MLJ 129 (“Goon’s case”) the Federal Court enunciated the following principle:“….. Where representations are made and are referred to the Industrial Court for enquiry it is the duty of that Court to determine whether the termination or dismissal is with or without just cause or excuse. If the employer chooses to give a reason for the action taken by him the duty of the Industrial Court will be to enquire whether that excuse has or has not been made out. If it finds as a fact that it has not been proved then the inevitable conclusion must be that the termination or dismissal was without just cause or excuse. The proper enquiry of the court is the reason advanced by it and that court or the High court cannot go into another reason not relied on by the employer or find one for it.” [Emphasis added] It is trite law that the Company bears the burden to prove that the Claimant had committed the alleged misconduct and that the misconduct warrants the Claimant’s dismissal [see Ireka Construction Berhad v. Chantiravathan a/l Subramaniam James [1995] 2 ILR 11 (Award No. 245 of 1995)]. The Company need only to prove misconduct justifying the dismissal or termination on the balance of probabilities [see Telekom Malaysia Kawasan Utara v Krishnan Kutty a/l Sanguni Nair & Anor [2002] 3 CLJ 314 (CA)]. Let me now deal with the following issues:(A) Whether the Claimant was dismissed by the Company in the first place? The answer to this question is in the affirmative since the Claimant was dismissed by the Company vide Punishment Order dated 04.08.2009. (B) Whether the dismissal of the Claimant by the Company was with just cause or excuse? Let me now deal with each of the charges:Charge No.1 “That you, as a Lead Engineer of the Company on 02 June 2009 at Hangar 03 MAS Complex A, Sultan Abdul Aziz Shah Airport, Subang, Selangor, had been absent from your workplace from about 0400 hours without permission whilst rostered for duty from 1945 hours till 0445 hours. You have therefore committed an act of misconduct inconsistent with the fulfillment of your terms and conditions of service with the Company by virtue of Clause 1, Para 1.1 AND Clause 15, Para 15.10 of Appendix A, Acts of Misconduct of the MAS Disciplinary Procedure and such an act of misconduct attracts severe punishment.” In respect of Charge 1 the following issues must be determined:- (i) Was the Claimant a Lead Engineer of the Company on 02.06.2009 at the Hangar while on duty? Claimant’s contention The Claimant’s contention is that the Claimant was not a Lead Engineer. The Company’s sole witness COW-1, Mr Melvyn testified that there was an error in drafting the charge and that the Claimant was not a Lead Engineer. He said ‘the terminology of Lead Engineer is incorrect’. COW-1 further stated that the said appointment is by way of a letter and the allowance of RM145 for the position of Lead Engineer will be reflected in the salary slip. He confirmed that no such letter of appointment was issued and neither was the RM145 reflected in the salary slip. One is either a Lead Engineer or not at all. There can be no substitute names, especially not when no payment of RM145 is made as the definition of Lead Engineer is specifically provided for in the Collective Agreement. It is not disputed that the Claimant was not paid the Lead Engineer’s allowance of RM145. The respondents have conceded this through their sole witness COW-1 that the Claimant was indeed not a Lead Engineer. According to the Claimant this defect is fatal and renders the 1 st Charge defective. Company’s contention The Company on the other hand relied on the evidence before the Court and contended that the Claimant is the Lead Engineer on 01.06.2009 and 02.06. 2009 based on the following evidence:- (i) The other crew members who were dismissed by the Company had also failed a claim of unfair dismissal which was referred to the Industrial Court and registered as Malaysia Airlines System Bhd v Nik Akhbarhafidz bin Bik Mustafa & 5 Ors 19/4-1050/11. In their Statement of Case on pages 1 – 48 of COB-2 the claimants had alleged as follows:“5.4 ……..The Claimants aver that they had been instructed and/or allowed and/or given the clearance by their team leader on 2.6.2009 one Mr. Sarjit Singh who had given them permission and clearance to leave their workplace after the full completion of their required and/or assigned task.” 5.5The Claimants also deny that they had made fraudulent overtime claims on 2.6.2009 as they were permitted and given clearance by their team leader one Mr. Sarjit Singh to make the aforesaid overtime claim until 7.00 o’clock in the morning after their tasks had been completed.” (ii) CLW-2 testified during cross examination as follows:“Q59: A: Look at page 28 and 29 of CLB-1, Do you know whether Sarjit or someone else was in charge of this shift on 1st June until 2nd June 2009 based on these pages? Know or don’t know? For this shift, Sarjit had taken the lead charge. Q60: A: Does lead charge mean he was in charge of this particular shift? Yes.” (iii) CLW- 3 testified during cross examination as follows:“Q62: A: Do you agree Mr. Sarjit was the most senior engineer in the a/c crew during the night shift on 1st and 2nd June 2009? Yes.” (iv) COW-1 testified during examination in chief as follows:“Q19: A: If you were not aware, why is he described as such? Based on my investigations, the Claimant took over the shift from the previous engineer. That is why we termed him as “the Lead Engineer”. Court’s Evaluation In my view based on the evidence the Claimant was not a Lead Engineer when he was doing his duty on 1st and 2nd June 2009. The fact that the terminology of describing the Claimant as Lead Engineer is incorrect that does not per se render Charge 1 defective. What is relevant is that the subject matter of the said charge refers to the Claimant himself as an employee and to that extent Charge 1 remains valid. (ii) Was the 2nd Claimant absent from his work place on 02.06.2009 from about 0400 hours without permission whilst rostered for duty from 1945 hours till 0445 hours? Claimant’s contention The Claimant had submitted that there was no proof that the Claimant was “absent from his work place from about 0400 hours”. The Company never produced any evidence to prove that the Claimant was in fact absent from his workplace at or from 4 am. In fact, no evidence was produced to prove that the Claimant was absent from the workplace at all. When COW-1 was asked, “How do you know that the Claimant had been ‘absent from your workplace from 0400 hours without permission’”, he replied, ‘We based this on the report of complaint from the Claimant’s head of department’ [crossexamination Q61]. Yet, this head of department was not called to give evidence to prove the truth of the contents of the charge. According to the Claimant since the report of the complaint was not tendered as evidence during proceedings, it will be deemed that no such report existed for COW-1 to base his charges upon. Company’s contention The Company on the other hand had firstly relied on the absence of denial of the Claimant that he was absent from his workplace at 4.00 am on 02.06.2009. Secondly the Company had also relied on the Claimant’s response letter dated 08.06.2009 wherein he also regretted his actions and apologised to the Company. Court’s Evaluation Based on the overall evidence adduced at the trial, I am of the firm view that firstly, eventhough the Claimant’s head of department was not called to testify in this regard nevertheless it is recognised that COW-1 relied on the report of complaint from the Claimant’s head of department and therefore it is not without any basis. Secondly, it is reasonable to consider the Claimant’s denial of his absence from the workplace in his response letter dated on 08.06.2009 as a piece of reasonable evidence to prove that he was not at his workplace at the said hours of work. Thirdly, the Claimant had in his response letter dated 08.06.2009 besides not denying that he was absent from his workplace at 4.00 am on 02.06.2009 had also stated that he regretted his actions and apologised to the Company. This is also a reasonable piece of evidence to show that he was absent from his workplace otherwise why should he have regretted and apologized to the Company. If the Claimant was indeed present at his workplace from about 4 am on 02.06.2009 as rostered, he would have vehemently denied such an allegation from the Company, instead of him merely giving his excuse of leaving the workplace earlier than scheduled and had also apologized for his actions. As a matter of fact none of the Claimant’s three (3) witnesses could testify on whether the Claimant was present at his workplace on 02.06.2009 or whether they had worked through their meal break as none of them were rostered with the Claimant on the same day/time. Based on the evidence it is my considered view that the Company had proven on balance of probabilities that the Claimant was absent on 02.06.2009 at about 4 am despite being rostered to work until 4.45 am on 02.06.2009. Hence, Charge 1 has been made out against the Claimant. Charge No.2 “That you, as a Lead Engineer of the Company on 02 June 2009 at Hangar 03, MAS Complex A, Sultan Abdul Aziz Shah Airport, Subang, Selangor, had made a fraudulent overtime claim from 0445 hours till 0700 hours despite not performing the job whilst rostered for duty from 1945 hours till 0445 hours. You have therefore committed an act of misconduct inconsistent with the fulfillment of your terms and conditions of service with the Company by virtue of Clause 7, Para 7.1, Clause 8, Para 8.1 and Clause 15, Para 15.10 of Appendix A, Acts of Misconduct of the MAS Disciplinary Procedure and such an act of misconduct attracts severe punishment.” With regard to Charge 2 on making false overtime (OT) claim it is an undisputed fact that the Claimant had been rostered for duty from 7.45 pm on 01.02.2009 to 4.45 am on 02.06.2009 and that he had submitted an overtime (OT) claim to the Company from 4.45 am to 7 am on 02.06.2009 based on the following:(i) The Daily Attendance/Overtime Sheet for 01.02.2009 (page 16 of COB) clearly shows that all the employees listed (which included the Claimant) had made an OT claim until 7 am (02.06.2009). (ii) The Claimant in his letter of response on page 7 of COB had stated as follows in paragraph 6:“After completing housekeeping and shutting down aircraft power, I told the men to wash up and I signed out at 0700 hours as it has been practiced in the past” (iii) During cross examination the Claimant testified as follows:“Q43: Refer to page 16 of COB column 7, do you agree that according to this document, you represented to the company, that you A: commenced work at 7.36pm (4th column vertical timing 1936) on 1st June 2009 and worked until 7am 2nd June 2009? Yes.” The Company had therefore submitted that in view of the fact that the Claimant was not at his work place at about 4am on 02.06.2009 as per Charge 1 above, the Claimant cannot claim OT from 4.45am to 7am on 02.06.2009 as he was not at work during that material time. Furthermore the Claimant’s own evidence regarding this issue is riddled with the following inconsistences which had severely impacted his credibility:(i) The Claimant had failed to dispute in all his correspondences with the Company that he was not present at his workplace at about 4am on 02.06.2009 as alleged in Charge 1. (ii) At first the Claimant during cross examination had testified that he did not work continuously as follows:- “Q48: A: (iii) Did you work continuously from 7.36om on 1 st June 2009 until 7am on 2nd June 2009? Not continuously. Then the Claimant testified during cross examination that he worked continuously from 4am to 7am on 02.06.2009 as follows:“Q51: A: (iv) Is it your evidence that you were at your work place continuously from about 4am until 7am on 2nd June 2009? Yes, Yang Arif.” Thereafter the Claimant testified during cross examination that he left before 7am on 02.06.2009:“Q66: A:Yes Did you leave early on 2nd June 2009 before 7am? Q67: A: What time did you leave on 2nd June 2009? Must be after 6am. Between 6am to 7am. Q68: Are you sure that at 7am you were no longer working at the work place? I can’t recall.” A: (v) The Claimant thereafter during re-examination went on to testify as follows: a) That he left around “6-ish”, b) That he left about 6am c) That he may have left before 7am. Based on the Claimant’s own submission it shows that the Claimant on the one hand claims that there is a practice that an employee can leave the workplace earlier than scheduled and to claim OT and therefore his action cannot constitute misconduct. On the other hand the Claimant disputes the fact that he left his the workplace earlier than the scheduled working hours. This two line of arguments raised by the Claimant are contradictory to one another and this shows that the Claimant is not telling the truth. It is clear from the evidence adduced before this Court and I believe that the Claimant had left work before 7am on 02.06.2009 despite signing off purportedly at 7am on 02.06.2009 on the Attendance Sheet to claim for overtime. Hence, Charge 2 has also been made out against the Claimant. In the addition to Charges 1 and 2 there are other issues that needed to be addressed as well:- (a) Was there a past practice of an employee being able to claim overtime even if he leaves earlier than the scheduled time? The Claimant had alleged that there was a purported practice in the Company that they were allowed to leave the workplace earlier than the scheduled time and to claim for overtime. In my view the Claimant has failed to prove such practices before this Court through documentary or testimony evidence. The following Claimant’s own witnesses’ testimonies allude to the fact that such practices were not allowed and they are not aware if such practices are approved by the management of the Company:(i) CLW-1 had testified as follows:“Q56: The last oral question. Question 17 onwards of the additional questions. Question 17, “Is there a practice in MAS, claim OT, Your answer is, yes there is a practice.” My question is, is this practice allowed by the company? No, not allowed. A: Q57: A: Q58: A: Q59: A: Q60: A: (ii) Assume that someone is working a shift from 7pm to 7am. They managed to finish all their work early, say at 5am. Can they claim OT from 5am to 7am even though there were not working. Are they allowed to do that? No, they can’t. Assuming their shift is from 7pm to 7am. They finish work early, let say 5am. Can they claim OT from 7am onwards? No, they are not allowed to. You said there is a practice, referring to question 17. I am putting it to you that there is no such practice authorized by the Company. Do you agree or disagree? Agreed. Refer to question 18, additional question, “does the engineering department know of this practice, you answered that I guess they know.”I am suggesting to you by your answer, you yourself are not sure about their knowledge. I agree.” CLW-2 testified in cross examination as follows:“Q64: A: Look at question 9, I am putting it to you that your answer here is not correct? Disagree. Q65: A: Do you have proof of your answer in question 9? No, I don’t have proof. ……. Q71: A: (iii) I am putting it to you all that is not allowed ? I don’t know.” CLW-3 testified in cross examination as follows:“Q103: Do you have any proof of this alleged practice? Yes or no? A: No. Q104: A: I am putting it to you that this alleged practice is not allowed by the management? I don’t know.” The Claimant went on to alleged that the Collective Agreement provided that the Claimant could have made such OT claims and relied on Article 35 (7) on page 74 of CLB-1 which provides as follows:“(a) The Company shall be entitled to:(i) Require employees to take their meal breaks if their services are not required during such meal breaks; and (ii) Provide an alternative break of the one (1) hour any time before or after the meal period concerned to employees who are not provided with one hour’s break during the meal period. (b) When an alternative meal break is not given an employee concerned will be paid overtime for the one hour concerned.” In my view nowhere in the said article provides that an employee is allowed to leave the workplace earlier than scheduled and claim for overtime. Article 35 (7) of the Collective Agreement provides that only Company is entitled to provide an alternative meal break time and that it was not up to the employees to decide when they want to take the alternative meal break. CLW- 3 had also testified to this effect during cross examination as follows:“Q67: A: Q68: A: Look at paragraph 7 (a) (ii) at page 74 CLB -1 , at 7 (a) the Company shall be entitled. I am suggesting to you that paragraph 7 (a) (ii) is up to the Company to decide not the employee? Agree. So where then does it say that when a crew work through one hour meal break, they can have it any time later during their working time and it is up to the team to decide? It is not there. Q69: A: Does it state in any other document? No” Even if the Court were to consider the Claimant’s own argument on paragraphs 38 and 39 of the Claimant’s submissions, that he was allegedly allowed to claim 1 hour overtime as per the above article (which is strictly denied), it was pointed out that the Claimant and the rest of the crew had claimed overtime of 2 ¼ hours as can be seen on the Daily Attendance/ Overtime Sheet on page 16 of COB. As such, even the Claimant’s own argument shows that the Claimant had committed a misconduct of falsely claiming OT. I find it hard to imagine that any organisation would have allowed for such a practice whereby its employees would claim for OT even though they had left earlier than the scheduled working hours unless expressly stated. It simply does not make sense. For purposes of argument even if such practice existed (which is strictly denied), the Company had no knowledge of it. This is consistent with the fact that in this instance when the Company discovered the action, the crew members, a total of twenty (20) employees were dismissed for the same charge as the Claimant. With regards to this, COW-1 testified as follows during re-examination:“Q12: Refer to cross examination question 78. You confirmed that there were 20 employees and all 20 employees were dismissed for the same charge. Were there only 20 employees involved in this or more than 20? A: Only these 20. Q: A: And all 20 were dismissed? Yes.” In my considered view the Claimant failed to discharge his burden to proof that such practice existed in the Company and whether such practices were approved or not by the management. The burden lies on him to prove such an assertion. (b) Are the charges of misconduct against the Claimant effective? The Claimant had alleged that the charges of misconduct were defective because the Claimant was allegedly not the “Lead Engineer” at the material time. In my view the Claimant’s designation could not affect the validity of the charges of misconduct here. The main thrust of the two (2) charges of misconduct against the Claimant is that he left the workplace earlier than scheduled and despite leaving the workplace earlier than scheduled he claimed OT from the Company. That is the crux of the matter. In fact, in a case of misconduct like in the instant case, what is important is that the employee concerned must know what they are charged for by the company. This was held to be the case by the High Court in Faber Group v Y.M Raja Mohar bin Raja Zainal Abidin (R2-25-58-96 wherein the court held as follows:“Sayugia diingat pertuduhan terhadap tindakan tatatertib tidak boleh disamakan tarafnya dengan pertuduhan terhadap tindakan jenayah yang dilakukan oleh Pendakwa Raya yang memerlukan butir-butir terperinci di dalam pertuduhan tersebut. Di dalam pertuduhan tatatertib, apa yang penting ialah orang yang dituduh tahu mengenai perkara yang dituduh terhadapnya. Dari keterangan yang ada Responden mengetahui butir-butir Pertuduhan Pertama ini. Ketiadaan butir-butir terperinci di dalam pertuduhan tatatertib itu tidak sepatutnya dianggap fatal seperti yang diputuskan oleh Mahkamah Perusahaan.” The above decision by the High Court was subsequently upheld by the Court of Appeal. It is clear from the correspondences by the Claimant to the Company that he was very well aware of the nature of the misconduct which he was charged with by the Company. Furthermore, the Claimant had not sought any clarification from the Company of the details of the charges nor did he inform the Company that there were details in the charges of misconduct which were lacking. (c) Does the failure to hold a Domestic Inquiry makes the dismissal unfair? COW-1 testified that one of the reasons why the domestic inquiry was not held is due to the fact that there was an element of admission in the Claimant’s correspondences with the Company. There is no doubt that the Collective Agreement 2008 between Malaysian Airline System Berhad and Malaysian Airline System Employee’s Union of Peninsular Malaysia (“the CA”) provides that the Company may terminate the employee after due inquiry (refer to page 64 of CLB-1). On this issue the law is established that the non holding of a domestic inquiry prior to dismissal is not fatal since the proceedings before this Court is by way of a rehearing. Therefore in the event domestic inquiry is not held by the Company, this could be cured at the rehearing at the Industrial Court as decided by the Federal Court in Wong Yuen Hock v Syarikat Hong Leong Assurances Sdn Bhd and Another Appeal [1995] 2 MLJ 753 and Milan Auto Sdn Bhd v Wong Sek Yen [1995] 3 MLJ 537. Therefore, it is my considered view that even if a domestic inquiry was not held prior to the dismissal that in itself would not result in an otherwise fair dismissal to be unfair. (d) Is there any merit in the Claimant’s allegation that there was a manpower shortage during his shift on 1st and 2nd June 2009? This purported issue was never raised to the Company until the Claimant responded to the letter seeking explanation on 08.06.2009. If there was a shortage as alleged by the Claimant (which is strictly denied), the Claimant surely as the most senior employee of the crew would have escalated the matter either during the shift or any time after the shift had ended which he failed to do only goes to show that these allegations are merely an afterthought which were raised only because of the charges of misconduct had been levelled against the Claimant by the Company. Hence, there is no merit in this purported issue. (e) Is the punishment of dismissal justified in the circumstances of the case? After reviewing the evidence in relation to the nature of the charges, I am of the firm view that the charges of misconduct as a whole against the Claimant amounted to a serious misconduct which warrants the Claimant’s dismissal as this involved the Claimant’s honesty and integrity in making a fraudulent overtime claim. Even the Claimant agreed that the misconduct were serious in nature when he testified as follows:“Q111. I am putting it to you that making a fraudulent overtime claims is a serious misconduct? A: Yes. Q112: A: Therefore, I am putting it to you that the allegation in charges 1 and 2 are serious in nature? Yes.” In Pearce v Foster [1886] QBD 536, Lord Esher MR, held as follows:- “The rule of law is that where a person has entered into the position of servant, if he does anything incompatible with the due or faithful discharge of his duty to his mater, the latter has a right to dismiss. The relation of master and servant implies necessarily that the servant shall be in a position to perform his duty and faithfully, and if by his own act he prevents himself from doing so, the master may dismiss him…” Similarly in the case of Yuvaneswaran Tachanamorty v Tetuan Shearn Delamore & Co [2012] 2 LNS 1256 held that honesty and integrity is amongst the key characteristic an employee should possess as follows:"The Court asks itself whether in this case it was reasonable for the Respondent to dismiss the Claimant. The answer to this question must be in the affirmative as the Claimant had committed the acts of misconduct, which were clearly inconsistent with the fiduciary relationship between the employer and an employee. The Claimant's conduct of submitting false claims justifies the managerial decision to dismiss the Claimant as this involves the Claimant's honesty and integrity. The Court is of the view that honesty and integrity are amongst the key characteristics that any employee should possess, no matter what form of employment the employee is engaged in." Conclusion After having taken into account the totality of the evidence adduced by both parties and bearing in mind s30(5) of the Industrial Relation Act 1967 to act according to equity, good conscience and substantial merits of the case without regard to technicalities and legal form, this Court finds that the Company had proved its case against the Claimant on the 2 said Charges on balance of probabilities and as such the dismissal of the Claimant was with just cause or excuse. Accordingly the Claimant’s claim is hereby dismissed. HANDED DOWN AND DATED THIS DAY 12th SEPTEMBER 2014 - signed (P IRUTHAYARAJ A/L D PAPPUSAMY) PENGERUSI MAHKAMAH PERUSAHAAN MALAYSIA KUALA LUMPUR