KUALA LUMPUR: Air Asia Bhd has been ordered to pay RM 268,620 in compensation and back wages to its former pilot for constructive dismissal.
Industrial Court chairman S. Vanithamany handed down the award to Eric Koh Kim Lai on Nov 7.
Koh, who began working with the airline in July 2018, resigned after being furloughed in 2022 due to the Covid-19 pandemic.
During this time, the airline cut Koh's basic salary by 75 per cent, attributing the reduction to grounded flights caused by border restrictions.
The company, however, argued that the claimant had tendered his resignation voluntarily.
The court ruled that putting an employee on unpaid leave and salary reduction until an indefinite period is not a fair labour practice.
"The claimant had cooperated and tolerated the unpaid leaves and 75 per cent reduction in salary, in addition, he was also not paid his salary for 11 months which the company admitted from June 2020.
"The claimant did not decide to leave the employment for any other reason but for those stated above.
"Employment is part of the livelihood for a person. If an employee decides to leave the company for unfair treatment, oppression or victimisation, that employee needs time to consider his decision as it might affect his livelihood and commitment," she said.
Vanithamany said Koh resigned after two weeks from the date the town hall meeting was held.
She said the company failed to prove the reason why it implemented the furlough for the third time and why the claimant's salary was reduced to 30 per cent with unpaid leaves.
"On the other hand, the claimant had proved on the balance of probabilities that the reason he left the company was because of the conduct of the company.
"The claimant had to choose between continuing the employment without pay or taking the risk of losing the job," she added.
She said the company argued that the reason the claimant left the company was because he had already secured another job.
"In the present fact, the claimant continued his employment with the company for almost two years with minimum wage and without any wages for 11 months.
"When the company broke its promises made in the town hall meeting on Nov 25, 2021, the claimant decided that he had no choice but to leave the employment because he could not sustain anymore.
"The claimant had secured another job for his livelihood and there is nothing wrong with it," she added.