Industrial Court upholds bank executive’s dismissal over drinking, spa visits

 Court chairman Ahmad Razif Sidek says Yap Tee Kuong's conduct breached the ethical standards expected of employees at a shariah-compliant bank.

Industrial Court chairman Ahmad Razif Sidek said the misconduct was particularly serious because Yap Tee Kuong’s position as director of retail banking demanded a high degree of trust, integrity, and accountability. (Facebook pic)

KUALA LUMPUR:

The Industrial Court has upheld the dismissal of a senior executive of a shariah-compliant bank for consuming alcohol and using spa facilities during a company event, ruling that the punishment was proportionate to misconduct incompatible with the ethical standards expected of employees at the financial institution.

Court chairman Ahmad Razif Sidek dismissed Yap Tee Kuong’s claim of unfair dismissal after finding that Al Rajhi Banking & Investment Corporation (Malaysia) Bhd had proved the allegations against him.

“This court is satisfied that it is safe to conclude that the explanation given by the claimant has no merit and, as such, the claimant is found guilty of serious misconduct, which warrants his dismissal,” said Razif in his 40-page decision dated yesterday.

He held that dismissal was justified, describing it as a punishment proportional to the gravity of the misconduct and “within the range of reasonable responses” available to the employer.

Yap joined the bank as deputy director of retail banking on May 31, 2016, and was promoted to director of retail banking in May 2018. He remained in the position until his dismissal on March 17, 2021. His last drawn monthly salary was RM50,800.

The bank dismissed Yap after issuing him a show cause letter and conducting an internal investigation.

The investigation found that during the bank’s two-day “Retail Banking Reward Stay” event at a Kuala Lumpur hotel in January 2021, Yap and six other employees consumed alcoholic beverages that were billed to the bank.

The bank also discovered that a spa treatment for Yap and his wife had been arranged and charged to the bank.

Razif said the misconduct was particularly serious because Yap’s position as director of retail banking demanded a high degree of trust, integrity, and accountability.

Agreeing with the bank’s submissions, he said Yap’s conduct had to be assessed against the higher standards expected of a senior executive in a shariah-compliant financial institution.

Razif said Yap’s actions justified the bank’s loss of trust and confidence in him and that his blatant disregard for the bank’s shariah policies and code of ethics had irreparably damaged the employment relationship.

“He was holding a senior position of trust in the bank, and as such, his conduct ought to be weighed with greater accountability,” he said.

He said Yap’s explanations failed to exonerate him and instead underscored his disregard for the bank’s institutional governance.

“In the circumstances, this court finds that the claimant’s dismissal was with just cause and excuse. Accordingly, the claimant’s claim is hereby dismissed,” he said.

Lawyers T Thavalingam and Mannvir Baljit Singh represented the bank, while Mathew Thomas Philip and Rene Yap appeared for Yap. - FMT