Its chairman, D Paramalingam, handed down the monetary award after finding that an order to reinstate Muhaimin Lau Abdullah to his employment with Artac Consulting Sdn Bhd was inappropriate in the circumstances of the case.

“There has been a total breakdown of trust and confidence between the claimant and the company,” he said.

Paramalingam awarded RM92,400 in compensation in lieu of reinstatement and another RM158,400 in backwages.

He said he also found Muhaimin’s act of walking out of his employment was justified after hearing the testimony of witnesses and perusing the documentary evidence tendered in the case.

“The claimant had succeeded in proving that there had been a fundamental breach of contract by the company entitling him to claim constructive dismissal,” he said in a 27-page award released yesterday.

Paramalingam said the employer’s decision to find Muhaimin guilty of a charge brought against him and punish him with a demotion to two ranks below, coupled with a reduction in salary and withdrawal of benefits, was flawed.

He noted that Artac Consulting’s human resources manager, Shuhailawati Md Johari, and chief executive officer, Badrul Hisham Hussain, had confirmed during their testimony that those decisions were made solely by the company’s executive chairman, Rahim Tamby Chik.

He also noted that the company had not disputed Muhaimin’s contention that all three members of the domestic inquiry panel were either closely related or associated to Rahim.

“The entire investigation and domestic inquiry proceedings leading to the finding of guilt of the claimant was solely orchestrated, controlled and decided by the executive chairman,” he said.

The domestic Inquiry was called in respect of an allegation that Muhaimin had allegedly failed to comply with the company’s SoP in the purchase of four air-conditioning units by the company.

The SoP relates to the procedure for purchase by the company of an asset, and provides that at least three quotations must be procured, with Rahim’s prior approval necessary for purchases valued at more than RM5,000.

Muhaimin had proceeded to sign a purchase order for RM35,352.06 without obtaining prior approval, it was alleged.

He was demoted from chief operating officer to legal officer, a position he held when he first joined the company in 2002.

Paramalingam accepted Muhaimin’s contention that he did not sign any purchase order as alleged in the light of evidence tendered in court.

Counsel Muhendaran Suppiah and Chong Wan Loo represented Muhaimin, while Auzan Hasanuddin Sazali and Marwan Abdullah appeared for the company.