Ex-CEO awarded RM1.1 million by court

A former chief operating officer of a construction company has been awarded RM1.1 million in compensation and back wages by the Kuala Lumpur Industrial Court which ruled that his dismissal for misconduct was unfair.

Chairman Ong Geok Lan held that Maju Holdings Sdn Bhd had failed to produce cogent and convincing evidence that Datuk Mohamad Rizal Abdullah was guilty of the two charges against him. "This court is satisfied that the claimant (Mohamad Rizal) had been dismissed without just cause or excuse," she said in her 27-paged judgement which was handed down on Jan 30, this year.

Ong ordered the company to pay Mohamad Rizal arrears in salary amounting to RM147,840, compensation of RM198,000 in lieu of reinstatement and back wages of RM792,000, within 40 days from the date of her decision.

On Oct 26, 2005, Maju Holdings issued a show cause letter to Mohamad Rizal requesting him to give an explanation within two working days why disciplinary action should not be taken against him for being absent from work without prior approval from Oct 19, 2005 until Oct 26, 2005.

Mohamad Rizal in his letter dated Nov 8, 2005 gave a lengthy explanation as to the events that brought about the allegation against him in the show cause letter, among others, that he was under instructions of the company's Group Managing Director to conclude a settlement with another construction company.

However, on Jan 9, 2006, a domestic inquiry panel found that Mohamad Rizal had committed serious misconduct which warranted his dismissal, resulting in his dismissal with immediate effect on Jan 11, 2006.

Muhamad Rizal then filed a complaint with the Industrial Relations Department after which his case was referred to the Industrial Court.

In her judgment, Ong said she found that Maju Holdings humiliated Mohamad Rizal, bearing in mind that he was a very senior officer and that it could not return Mohamad Rizal his job because the relationship between the parties had broken down.