Industrial Court Awards RM2.2 Million to Former General Manager
KUALA LUMPUR: A former general manager of petrochemical firm CJ Polymer Sdn Bhd, Sim Chin Hu, has been awarded more than RM2.2 million after the Industrial Court ruled that his dismissal was without just cause or excuse.
Failure to Secure Key Witness’ Testimony Proves Fatal to Company’s Case
Industrial Court chairman M Eswary said the company’s failure to secure the testimony of Kerk Han Meng, the director who terminated Sim’s services, was fatal to its case. "This court was only left with the evidence of other witnesses of the company who were not personally involved in the claimant’s dismissal," she said.
Claimant Deprived of Opportunity to Cross-Examine and Seek Answers
Kerk’s absence had deprived Sim of the opportunity to cross-examine him over the charges brought by the company against him, as well as seeking answers as to why he was dismissed one day after replying to a show-cause notice dated November 24, 2019. As a result, Eswary drew an adverse inference that had Kerk testified, his evidence would have been detrimental to the company’s case.
Award of RM2,226,000 in Back Wages and Compensation
Eswary awarded Sim RM2,226,000 in back wages and compensation. As a former general manager, Sim drew a salary of RM70,000 a month. He was awarded 24 months’ back wages (subject to a 30% deduction for post-dismissal earnings), and 15 months’ salary as compensation in lieu of reinstatement.
Background to Dismissal
Kerk and Sim had formed the company as equal partners in 2001 to export and import polymers and textile products. In 2017, they agreed to admit Eric Kua as a partner. However, Kerk, Kua, and one Ainsley Lee later attempted to portray Sim as solely responsible for losses the company suffered in South Africa, with a view to ousting him from management.
Company’s Suit Dismissed
The company filed a civil suit against Sim for allegedly misappropriating RM38 million, making secret profits, and other losses suffered. The suit was premised on the same charges stated in the show-cause letter issued to Sim. However, on August 19 last year, the High Court dismissed the company’s suit.
Court’s Findings
Eswary found that Sim had comprehensively explained in his reply to the show-cause notice and proven in court that the company’s management and staff were fully aware of the South African transactions. She also found that the transactions had Kerk’s approval. "It was also established that at all material times, the claimant was the director in charge of handling most, if not all, international trading business and was authorised to proceed with such transactions," she said.
Conclusion
Eswary concluded that the claimant’s dismissal was without just cause and excuse, and the company had failed to discharge the burden of proving the charges brought against the claimant to justify his dismissal.
FAQs
- What was the amount awarded to the claimant?
- RM2,226,000 in back wages and compensation
- What was the claimant’s salary before his dismissal?
- RM70,000 a month
- What was the company’s suit against the claimant based on?
- Alleged misappropriation of RM38 million, making secret profits, and other losses suffered
- What was the outcome of the High Court’s decision on the company’s suit?
- The suit was dismissed