Court Orders American Express Malaysia To Pay RM153,200 To Ex-Employee Over Toxic Workplace Claims

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The Industrial Court has ruled in favour of a former American Express Malaysia employee who claimed he was pushed out of the company after repeatedly raising concerns about workplace bullying and harassment

In a strongly worded decision, Chairman Augustine Anthony said the evidence showed that the victim, R Kuhendran, had been working in a toxic environment where intimidation and ridicule were tolerated instead of addressed.

The court found that rather than investigating the complaints, the company intensified disciplinary action against the employee before eventually dismissing him in June 2022, according to the New Straits Times.

Kuhendran, who worked as a senior credit specialist and joined the company in 2014, told the court that the issues began years earlier under his immediate superior, Vijay K Jayadevan Nair.

According to the award, warning letters and disciplinary measures issued against Kuhendran from 2015 onwards appeared linked to his attempts to raise concerns about workplace conduct.

The court heard that despite formal complaints being lodged internally, no meaningful action was taken against the superior

Anthony said evidence presented during proceedings showed the superior had used derogatory and sexually charged language against employees through the office messaging system.

"The evidence clearly shows that the company was nitpicking the claimant's every action to find fault," the chairman said in the award.

He added that no employee could reasonably feel secure working under such conditions.

The situation escalated after Kuhendran sent a letter of demand to the company's headquarters in New York in March 2022 seeking intervention over the alleged harassment.

Within months, he was issued a show-cause letter accusing him of misconduct and poor performance before being terminated on 23 June that year.

American Express argued that the dismissal was justified due to longstanding performance and behavioural concerns

But the court rejected much of the company's justification, describing several allegations as vague and unsupported by convincing evidence.

Anthony also criticised the company for continuing to place the superior in a leadership role despite what the court described as documented misconduct.

"It was foolhardy for the company to make this very person the coach, guide, and leader," he said.

The chairman further questioned why the company appeared more focused on protecting the team leader than safeguarding employees who had raised complaints.

He concluded that the show-cause letter issued after Kuhendran contacted the company's US headquarters appeared to be retaliation and "a swift manoeuvre to do damage control".

The court also found that the company failed to place Kuhendran under a proper performance improvement plan before dismissing him

Kuhendran was awarded RM114,000 in back wages and RM39,200 as compensation in place of reinstatement, bringing the total award to RM153,200.

He was represented by lawyers Bhavanash Sharma and J Soarminie.

The company was represented by Trishelea Ann Sandosam, Rachel Tey, and Sofia Asyikin Mohd Kamil.