09.06.2026 09:10
The 18-year personnel chief who showed non-attending employees as working by swiping their cards was dismissed without severance. The local court's decision to grant compensation to the worker, stating that "the employer's damage could not be proven," was overturned by the Court of Cassation. In its precedent ruling, the Court of Cassation rejected the compensation claim, stating that swiping a card for someone else violates honesty and loyalty, and that material damage to the employer is not a prerequisite.
A personnel chief who swiped an absent employee's entry card to make it appear as if they were working was dismissed without compensation despite 18 years of seniority. The Court of Cassation overturned the local court's ruling in favor of the worker, setting a precedent by stating, "It is not necessary for the employer to suffer material damage; this action violates honesty and loyalty."
18-YEAR PERSONNEL CHIEF SOUGHT COMPENSATION
According to a report in Sabah Newspaper, the incident began when K.B., who had worked as a personnel chief at a factory for approximately 18 years, was dismissed. K.B., whose employment contract was terminated without compensation, claimed unfair treatment, asserting they worked intensively every day between 08:30 and 23:00, and filed a case at the Labor Court. The plaintiff chief demanded payment for severance pay, notice pay, and overtime compensation.
EMPLOYER: THEY SHOWED A NONEXISTENT WORKER AS PRESENT, DECEIVING US
The defendant employer argued that the termination was fully justified. The employer stated that Chief K.B. had swiped the entry card of a worker under their supervision on days when that worker was not at the factory, thereby making it appear as if the worker was present. Emphasizing that this action fundamentally undermined the trust relationship and constituted deception aimed at misleading management, the employer asserted that no compensation should be paid.
LOCAL COURT SAID "THEY HAVE 18 YEARS OF SERVICE"
The First Instance Court, reviewing the case file, ruled in favor of the worker. In its decision, the court stated that it had not been concretely proven how the personnel chief's action caused loss to the employer, and included the following statements:
"Considering the plaintiff's 18 years of seniority and the absence of any similar prior record, this singular action cannot alone be deemed trust-undermining. The termination may at most be considered a 'valid reason,' but it does not reach the level of a 'justified termination' without compensation."
When the employer's appeal was also rejected by the Regional Court of Appeal, the employer appealed the decision, bringing the case to the Court of Cassation.
COURT OF CASSATION HAD THE FINAL WORD: DAMAGE IS NOT REQUIRED, TRUST IS BROKEN
The 9th Civil Chamber of the Court of Cassation issued a landmark decision closely relevant to card-based entry systems in the business world. Unanimously overturning the local court's decision, the Court of Cassation justified the employer with the following reasoning:
- Damage Not Required: The act of swiping a card for another person constitutes a serious fault inconsistent with honesty and loyalty. It is not necessary for the employer to suffer concrete damage from this behavior.
- Unjust Gain Exists: Moreover, the worker shown as present despite not being at the workplace would be unfairly paid wages for the time they did not work.
- No Compensation: In this case, it must be accepted that the employment contract was justifiably terminated by the employer. It was erroneous to accept claims for severance and notice pay when they should have been rejected.
The Court of Cassation completely annulled the lower courts' decisions, unanimously rejecting the personnel chief's compensation claim.