The Industrial Court of Malaysia recently dealt with a dismissal case involving an employee who failed to declare a conflict of interest while conducting business transactions with her employer during working hours.

The case involved an administrative assistant with over eight years of service who was terminated after her employer discovered she had been supplying health products to the company through a third-party supplier connected to her husband.

The worker had earned profits from these transactions without making the required disclosure under company policy.

The worker argued that the dismissal was excessive, claiming she had only received small profits and that her intention was to help colleagues during the COVID-19 pandemic rather than to gain financially.

She also argued that her employer had failed to conduct a proper domestic inquiry before terminating her employment, and that there were inconsistencies between the charges and the termination letter.

Side business: conflict of interest?

According to records (case No. 21/4 1570/22), the worker was employed as an administrative assistant in the information technology department of an oil and gas exploration company.

The worker started her employment in September 2014 with an initial monthly salary of RM2,400. Her contract was renewed multiple times, and by her final contract period from November 2020 to November 2022, she was earning RM3,350 monthly.

Her duties included providing administrative support,...

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