Can a company dismiss an employee who took the company's property?
Unfair dismissal and allegations of taking company property in Malaysia
Finding company equipment in an employee’s possession can prompt an immediate suspicion of theft. Before deciding on dismissal, an employer needs a clear account of what happened and why.
In Lee Ee Chai v Kansai Paint Asia Pacific Sdn Bhd [2026] 4 MLRA 483, the Court of Appeal considered a dismissal arising from the removal of office equipment during a relocation.
What happened?
A senior manager removed two chairs and two projectors. He explained that he was moving them to the company’s new office.
The employer dismissed him following a domestic inquiry. The Industrial Court ordered reinstatement and back wages, but the High Court set that award aside.
On 13 March 2026, the Court of Appeal restored the Industrial Court’s award.
Why did the dismissal fail?
The charge combined theft and taking property without permission without clearly distinguishing the accusation. The Court also considered the employer’s unclear relocation instructions and the evidence supporting the employee’s explanation. Dishonesty had not been proved.
The decision does not give employees permission to remove company property. It illustrates why the allegation, evidence and circumstances must support the dismissal.
What should employers and employees take note of?
For employers, start by identifying the disputed act. Which items were removed, when were they removed, what instruction applied, and who could authorise their movement? Keep the asset list, messages and relevant CCTV together so that the employee’s explanation can be checked against the records.
A show-cause letter should tell the employee what they need to answer. Simply copying a broad misconduct clause from a handbook may leave important questions unresolved. If the concern is a failure to obtain permission, explain that concern precisely. If dishonesty is alleged, identify the conduct said to support it.
For employees, an explanation is more useful when accompanied by a timeline and supporting records. Identify who gave the instruction, where the items went and when they were returned. Preserve relevant messages rather than relying only on recollection.
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