The Industrial Court ruled that a former pilot was constructively removed from AirAsia‘s employment and ordered the airline to pay him RM268,620 in compensation and back wages.
Last Thursday, Chairman S. Vanithamany delivered the ruling in favor of Eric Koh.
After being put on furlough in 2022 due to the Covid-19 outbreak, Koh, who began working for the budget airline in July 2018, resigned.
Due to border limitations that caused planes to be grounded, the airline cut Koh’s base pay by 75% during that time.
Koh asserted that the decision to reduce his wages had put his livelihood in jeopardy, forcing him to retire.
But according to AirAsia, Koh quit voluntarily.
Vanithamany ruled that without Koh’s permission, AirAsia was not permitted to withhold more than 50% of his pay.
“Koh’s contract did not mention anything about the number of times he should fly in a month in order to draw the basic salary,” she said, adding that only allowances payable to Koh were computed based on how frequently he flew in a month.
The court also pointed out that, in spite of the pandemic, AirAsia claimed 2021 profits.
“Looking at the facts at hand, it appears that the company had imposed these furloughs and unpaid salary schemes on the claimant (Koh) without his consent as he had no choice but to accept it due to a training bond he signed,” said Vanithamany.
“They also implemented the 75% salary reduction on the claimant unlawfully,” she said, pointing out that AirAsia did not adduce evidence to back its claim that the director-general of industrial relations consented to the move.
Koh was given RM36,300 as compensation in lieu of reinstatement and RM232,320 in unpaid wages by the court.
Koh was represented by attorneys Leow Ho Eng and Tiffany Chin, while AirAsia was represented by Wendy Lam and Wong Jia Ee.
