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Free Malaysia Today
24-04-2025
- Business
- Free Malaysia Today
Ex-exec ordered to pay company nearly RM120,000 for contract, data breach
The High Court in George Town, Penang, ordered former senior marketing executive Ng Siew Phei to pay FP Stencil Sdn Bhd RM99,000 in damages, RM19,950 for hiring a forensic IT expert, and RM50,000 in costs. PETALING JAYA : A former senior marketing executive was ordered by the High Court in George Town, Penang, to pay almost RM120,000 in damages to her former employer, a company involved in making computer chips, for breach of her employment contract. Justice Anand Ponnudurai said FP Stencil Sdn Bhd, a wholly-owned subsidiary of public-listed Foundpac Group Bhd, had proven that Ng Siew Phei had violated her contract and had engaged in some unlawful interference. 'The court is of the view that a sum of 18 months' salary as a global sum would be appropriate under all the circumstances,' he said in his broad oral grounds of judgment to allow the company's suit. Eighteen months of Ng's salary of RM5,500 amounted to RM99,000. The court also ordered Ng to pay FP Stencil RM19,950, being the amount incurred by the company to engage a forensic IT expert. Ng, 43, was also ordered to pay the firm RM50,000 in costs. The company had sued Ng on multiple grounds, including breaches of her employment contract, confidentiality, fiduciary duties and fidelity, unlawful interference with its business, as well as alleged misconduct committed before and/or during the termination of her employment. Ng joined the company as a sales executive on Nov 1, 2013, but tendered her resignation with immediate effect on Aug 6, 2021, paying her employer RM11,000 in lieu of serving the notice period. She joined a competitor, Ocular Stencil Sdn Bhd, on the same day. On Aug 9, 2021, the company discovered a mass deletion of documents and emails from her work computer. There were also missing files in the shared work network accessed from the computer. The plaintiff's human resources team also found that the mobile phone SIM card returned by Ng was scratched and had become non-functional. The only documents left on Ng's desk were old and outdated purchase orders, which were insufficient for her successor to carry out her duties. The company said that despite repeated requests and reminders, Ng had neglected or refused to do a proper handover of work and to return all the plaintiff's confidential information. In late September 2023, the company, represented by Leonard Yeoh together with Chen Mei Yan and Sharon Teo of Tay & Partners, commenced its suit. Counsel Beh Hong Shien and Khor Cindy acted for Ng.
Focus Malaysia
23-04-2025
- Business
- Focus Malaysia
Ex-employee's betrayal costs: Court awards RM118,950 in damages to FoundPac's subsidiary
THE Penang High Court has recently declared that a former employee of FP Stencil Sdn Bhd, a wholly-owned subsidiary of the public-listed engineering parts manufacturer FoundPac Group Bhd, as having breached her employment contract. The Court granted a mandatory injunction by compelling the former employee to return all company properties and confidential information in her possession within 14 days while awarding a total of RM118,950 in exemplary damages (equivalent to the defendant's 18-month salary) and RM50,000 in costs to the company. The former employee, Ng Siew Phei, 44, had resigned without notice and joined FP Stencil's competitor on the same day she left the company. Her successor subsequently discovered that almost all documents and information had been deleted from the work computer while vital files were missing from the company's shared work network. Upon requests from the company, Ng claimed that the customer contact list requested had been accumulated through her own efforts over the years, hence did not belong to FP Stencil. However, following a police report lodged by the company and its subsequent repeated requests, she submitted a list which was later found to be outdated and/or incomplete. Nevertheless, an IT forensic expert engaged by FP Stencil to investigate and retrieve the deliberately deleted information or documents confirmed that Ng had transferred voluminous files from her work computer by having retained them via USB drives. 'Deterrent damage' Moreover, she had also performed a bulk permanent deletion of crucial business documents on the day she tendered her resignation on Aug 6, 2021 as a senior marketing executive. She had joined the company on Nov 1, 2013 as a sales executive. Court evidence further revealed that Ng had directly contacted the company's customers to procure work for her new employer within a month of leaving. On this account, the Court held that the duty of confidentiality during and upon cessation of employment is implied in the employment terms, especially when the former employee had access to sensitive business information. Retaining and utilising the company's information to benefit herself and the company's competitor constituted unlawful interference with the company's business. As such, the Court also awarded exemplary damages to serve as a deterrent to other employees in the future. Leonard Yeoh together with Chen Mei Yan and Sharon Teo of Tay & Partners, represented FP Stencil while Beh Hong Shien and Khor Cindy of Y.C. Wong appeared for the former employee. – April 23, 2025 Inage credit: FoundPac Group Bhd Annual Report 2017
