Sacked GM wins RM1.3mil

Monday April 7, 2008

By CHELSEA L.Y. NG

KUALA LUMPUR: A former general manager of industrial gases supplier Malaysian Oxygen Bhd (MOX) won over RM1.29mil in back wages and compensation in lieu of reinstatement for wrongful dismissal.

The Industrial Court granted the huge award despite having found Soh Tong Hwa guilty of two misconducts, saying that dismissal was too harsh a punishment.

Court chairman Susila Sithamparam held that Soh had breached his fiduciary duty and placed himself in a position of conflict of interest when he failed to disclose that his wife and family members were key figures in two firms that were major suppliers of MOX.

Soh, whose last drawn salary was RM31,625, was granted 24 months of wages in compensation and a similar sum, albeit scaled down by 30% for back pay, as he was found guilty of two of the eight charges against him. Counsel V.K. Raj acted for him in the case.

Susila ordered that the RM1,290,300 be paid by the company by April 16.

She had, among others, held that, under the law, an employee should not engage in another business or put himself in a position of conflict of interest but found that Soh had devoted his time fully to MOX which had recognised his dedication by giving him salary increments, generous bonuses, payment in lieu of his annual leave and written testimonials.

“The court found that he was not engaged in the activities (of the other company owned by him and his wife) ... to the extent that he was not able to fulfil his obligations to MOX.

“A passive shareholder or director of one company would not give rise to any conflict of interest as an employee in another company,” she said, adding that Soh’s company was not a competitor.
The court held that the dismissal was without just cause or excuse but did not order reinstatement as Soh is currently employed elsewhere at a higher salary from March last year.

In its claims, MOX alleged that it discovered Soh’s misconduct after investigating complaints from outsiders who claimed difficulties in doing business with the company, especially the department headed by Soh.

MOX claimed the probe revealed that Soh and his team had also obstructed potential suppliers from doing business with MOX.

Soh denied he had the ultimate approving authority for purchases for his division and pointed out that MOX only implemented the conflict of interest policy during his suspension.

He joined the company as a production engineer in 1979 and rose steadily to the position of general manager of the Process Gas Solutions division before he was sacked in 2003, after 24 years of service.

His last drawn salary was RM27,125 not inclusive of a RM4,500 car allowance. He was also paid a bonus every three months and given an annual holiday allowance.