Freescale Semiconductor Malaysia Sdn Bhd v Edwin Michael Jalleh & Anor [2012]

A senior manufacturing supervisor was dismissed after an internal inquiry confirmed that he had inappropriately touched a female employee on the factory floor. He challenged the dismissal under section 20 of the Industrial Relations Act 1967, and the Industrial Court accepted the misconduct but ruled that termination was excessive, awarding him back wages and compensation in lieu of reinstatement. The High Court declined to disturb that award on judicial review. On further appeal, the Court of Appeal stressed that disciplinary measures in industrial relations must be proportionate not only to the employee’s interests but also to the wider interests of workplace integrity and good relations. It found that the Industrial Court had failed to give proper weight to the fact that the misconduct was carried out by a supervisor against a subordinate, which magnified its seriousness, and that awarding compensation in those circumstances unfairly penalized the employer for an act that was wholly personal to the employee. The Court of Appeal overturned both the Industrial Court’s award and the High Court’s decision, holding that dismissal was an appropriate sanction.