Case Law

Proven Misconduct Does Not End The Inquiry

The court asks two separate questions before a misconduct dismissal is upheld.

For people seeking legal representation. For general information, please use our guides and tools.

What the case decided

Milan Auto Sdn Bhd v Wong Seh Yen addresses how a misconduct dismissal is tested. The Federal Court decided it in 1995, reported in the Current Law Journal (CLJ) at [1995] 4 CLJ 449.

The court held that the Industrial Court has two tasks. It first decides whether the alleged misconduct was established on the evidence.

It then decides whether that proven misconduct was serious enough to be just cause for dismissal.1

What the principle means plainly

These are two separate questions, not one. An employer proving that something happened does not automatically win the case.

The court must still weigh whether dismissal was a fair and proportionate response.

A minor lapse in an otherwise clean record can count as misconduct and still be too small a reason to lose your job.

What it means for a worker

If you are facing a misconduct dismissal, do not assume the case is over, even where the incident itself is hard to dispute.

Whether the penalty was proportionate is a separate question. Your length of service and past record can matter here, so gather evidence of your work history, such as appraisals and warning letters.

Where this fits in a claim

This twofold test sits alongside the reason-based test from Goon Kwee Phoy v J & P Coats. Both are argued together within a broader unfair dismissal claim at the Industrial Court.

The outcome depends on your specific facts, and no result is promised.

The 60-day window runs from your dismissal date, so check the deadline calculator early.

If you were dismissed for misconduct and the penalty seems too heavy, an independent employment lawyer can review the incident and the punishment. They can act if it is worth pursuing.

For people seeking legal representation. For general information, please use our guides and tools.

First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.

Common questions

What did the Federal Court decide in Milan Auto?

The Industrial Court has a twofold function in a misconduct case. It first decides whether the misconduct actually happened on the evidence, then separately decides whether that misconduct was serious enough to justify dismissal.

Does proof of misconduct mean the dismissal was automatically fair?

No, proof of misconduct is only the first step. The court still has to weigh whether dismissal, as opposed to a warning or a lesser penalty, was a proportionate response to what actually happened.

Why does this distinction matter for a worker?

It means even if you admit or cannot dispute the underlying incident, you can still argue the penalty of dismissal was too severe. That argument is separate from disputing the facts themselves.

Sources

  1. The Industrial Court has a twofold function: first to decide whether the misconduct was established, then to decide whether it was serious enough to be just cause or excuse for dismissal. Mah Weng Kwai & Associates (accessed 2026-09-22)

If you were dismissed for misconduct and the penalty seems too heavy, an independent employment lawyer can review the incident and the punishment. They can act if it is worth pursuing.

For people seeking legal representation. For general information, please use our guides and tools.

First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.