KUALA LUMPUR: The Industrial Court has ordered AirAsia X Bhd to compensate a former pilot RM511,200 after determining that the airline's retrenchment process was unfair.
Wong Zi Chuang was awarded the compensation following last week's ruling against AirAsia X Bhd by Industrial Court chairman D. Paramalingam, as reported by FMT.
Paramalingam ruled that while the airline company was allowed to deviate from the 'last-in, first-out' (LIFO) principle under the Code of Conduct for Industrial Harmony in favour of a 'best fit' policy, "decisions made under this policy are subject to judicial scrutiny."
"The company's 'best fit' policy holds no greater legal standing than the LIFO principle," he said.
The court found that AirAsia X had failed to prove Wong's position was genuinely redundant when he was retrenched in June 2020, shortly after the government implemented the movement control order that grounded most flights.
Paramalingam also noted that retrenchment decisions during such uncertain times were arbitrary, as it was unclear which pilots were truly redundant.
He also criticised the company's witness for being evasive about whether Wong's flight route was permanently cancelled or merely suspended.
Wong's retrenchment was influenced by his disciplinary record rather than his role being redundant.
AirAsia X had used a point-based "best fit" policy where pilots were assessed annually, and Wong was rated poorly due to a 35-point deduction for a policy breach in January 2019.
Paramalingam said that Wong's disciplinary issues had been resolved after receiving a warning letter and should not have impacted his redundancy status.
Wong had also volunteered for furlough, offering to work for a token sum to help the company reduce costs, but this was ignored.
The airline eventually implemented furlough in January 2021, months after Wong's retrenchment.
The court ruled that Wong's dismissal was not conducted in good faith and lacked just cause.
Wong, who had served the airline for nearly 12 years with a monthly salary of RM18,000, was awarded RM198,000 in compensation for reinstatement and RM432,000 in back wages, less RM118,800 for post-dismissal earnings and payments already made.