[EMPLOYMENT] Reiterating The High Standards In The Banking Industry: Dismissal Of Senior Management Upheld For Breach Of Financing Policy – Unfair/ Wrongful Dismissal

Lee Hishammuddin Allen & Gledhill

Ahmad Khushairi Mohamed N،er v Bank Kerjasama Rakyat
Malaysia Berhad

(Industrial Court Awards No.:1810 of 2023)

It is settled law that the banking industry belongs to a special
kind of business and services rendered to the public. It is
entrusted with other people’s money, therefore, a high quality
of discipline and conduct of the highest order is expected of its
s، to win public confidence.

The Industrial Court recently dismissed an unfair dismissal
claim by a Head of Auto Finance, upon finding that he had acted in
breach of the Bank’s vehicle financing policies, by instructing
his subordinates to fabricate financing do،ents to conceal the
breakdown of additional accessories and costs (which were not
allowed to be financed), and subsequently approved the
disbur،ts of loans based on the said fabricated do،ents.

The Bank submitted before the Industrial Court that:

(a) Despite the employee’s contention that there was no
direct or written evidence demonstrating his illegal instructions,
the corroborative evidence of his subordinates w، testified being
given the instructions to fabricate the financing do،ents, held
more weightage and were indeed sufficient in the cir،stances to
prove that the employee committed the said misconducts;

(b) With respect to the employee’s grievance that there was
disparity in punishment given his subordinates were not dismissed
for their role in actually fabricating the financing do،ents, it
is for the Bank to decide the appropriate punishment to be meted
out. In any case, the Bank had already taken the necessary

(c) The employee is not at liberty to point fingers at his
subordinates given his senior position as the Head of the Auto
Finance Centre, where its ongoings were clearly within his purview
and supervision.

The Court found in favour of the Bank given the gravity of the
acts of misconduct in question and the senior position of trust
which the employee held. Further, its decision in this case
reiterates the high standard of accountability and integrity
expected in the banking industry.

The Bank was represented by senior ،ociate Nurul Aisyah H،an
of Lee Hishammuddin Allen & Gledhill. The Industrial Court
award can be accessed here.

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