Medical certificates (MCs) are among the most common documents in any workplace. They serve as proof that an employee has been examined by a doctor and declared unfit for work due to illness or injury. In Malaysia, under Section 60F of the Employment Act 1955 (Act 265), employees are entitled to paid sick leave if certified by a registered medical practitioner. The law recognises that health is essential, and employees should not be penalised for being legitimately sick.

But what happens when an employee abuses this system? Imagine a worker who submits an MC not because they were truly ill, but because they wanted a long weekend trip. Or someone who uses a falsified MC obtained from an unregistered source. The question arises: can the company terminate employment if it discovers that the MC was faked or misused?

The Nature of Misconduct

Employment law in Malaysia makes a clear distinction between ordinary termination with notice and summary dismissal for misconduct.

• Section 12 of the Employment Act 1955 provides for termination with notice, according to the terms of the contract or the statutory minimum.
• Section 14 allows an employer to dismiss an employee without notice (summary dismissal) if the employee is guilty of misconduct, after the employer has conducted a due inquiry.

Cheating in relation to an MC is widely recognised as a form of misconduct. Misconduct may include dishonesty, fraud, or actions that breach the trust and confidence essential to the employment relationship. Submitting a fraudulent MC—or even misusing a genuine MC for non-medical purposes—falls squarely into this category.

Legal Requirements for Termination

Even if the employer suspects or discovers fraud, the law requires that due process be followed. Employers cannot dismiss an employee simply on suspicion or hearsay. The Industrial Relations Act 1967 (Section 20) protects employees from dismissal “without just cause or excuse.”

Therefore, before termination, the employer must:

1. Investigate the Allegation
   • Verify the authenticity of the MC (for example, by checking with the clinic or doctor).
   • Gather evidence that shows the employee was not genuinely ill (e.g., social media posts of travelling during the MC period).
2. Issue a Show-Cause Letter
   • The employee must be given a chance to explain. The show-cause letter sets out the allegation and invites a written response.
3. Conduct a Domestic Inquiry (DI)
   • If the explanation is unsatisfactory, the company may hold a domestic inquiry. This is a formal process where the employee is heard, witnesses may be called, and evidence presented.
   • The DI ensures fairness and natural justice.
4. Decide on Action
   • If the misconduct is proven, the employer may dismiss the employee without notice, demote them, or impose another penalty.
   • If not proven, no punishment should be imposed.

This process ensures that termination is not arbitrary and that the employer can defend its decision if challenged at the Industrial Court.

Case Law and Precedents

Malaysian Industrial Court decisions have consistently treated cheating on MCs as serious misconduct.

• In cases where employees submitted forged MCs, the Court upheld dismissals, ruling that dishonesty destroyed the trust between employer and employee.
• In cases where employees were found engaging in non-medical activities during MC days (such as travelling abroad), the Court has also upheld dismissal, provided the employer followed proper inquiry procedures.

The guiding principle is that the employment relationship is built on trust. Once that trust is broken through dishonesty, termination may be justified.

Lessons for Employees

Cheating an MC is high risk.
Even if you escape detection once, discovery later can result in dismissal and a permanent mark on your employment record.

1. Honesty is the best defence.
   If you are genuinely unfit, see a registered doctor and obtain a valid MC. Do not rely on dubious sources or exaggerate illness.
2. Employees have rights, but also duties.
   While the Employment Act grants sick leave entitlements, it assumes good faith. Misuse of those entitlements is a breach of duty.
3. If accused wrongly, defend yourself.
   Sometimes employers misinterpret circumstances. For example, you may look “healthy” to colleagues but actually be unfit due to non-visible conditions. Always provide full medical documentation and explanations when asked.

Lessons for Employers

1. Do not rush to terminate.
   Even if you suspect fraud, dismissal without inquiry can expose the company to unfair dismissal claims. Always follow the proper process.
2. Verify MCs discreetly.
   Contact the issuing clinic if in doubt, but respect patient confidentiality. Focus on authenticity rather than diagnosis.
3. Use progressive discipline.
   Not all misuse warrants dismissal. For example, minor discrepancies might justify a warning rather than termination. Reserve dismissal for serious or repeated misconduct.
4. Document everything.
   Keep records of the show-cause letter, the domestic inquiry, and the evidence. This will be crucial if the case goes to Industrial Court.

Conclusion

So, can a company terminate an employee if it finds that the employee cheated on their MC? The answer is yes—but only if due process is followed.

The law recognises dishonesty with medical certificates as serious misconduct that can justify dismissal. However, the employer must prove the misconduct through investigation and inquiry. Arbitrary dismissal without process may be deemed unfair, even if the allegation is true.

For employees, the message is clear: do not risk your job and credibility by abusing MCs. For employers, the lesson is to act lawfully and fairly—verify first, inquire properly, then decide.

Ultimately, trust is the foundation of every employment relationship. Once trust is broken by cheating on something as basic as medical leave, the law allows employers to end the relationship. But it must be done fairly, transparently, and within the boundaries of Malaysian labour law.