KUALA LUMPUR, Dec 24 — Three former pilots of Malindo Airways Sdn Bhd have successfully obtained total compensation amounting to RM1.44 million after the Industrial Court ruled in their favour over wrongful dismissal without just cause.

Industrial Court chairman Zalina Awang @ Mamat made the decision after finding that the airline failed to prove that the termination of the three pilots was carried out bona fide (in good faith), according to a report published in BuletinTV3 today.

The claimants were senior first officer M Muralitharan, first officer Nik Afiq Farhan Nik Mohd Hilmi, and captain Foong Wai Ming.

Muralitharan and Wai Ming had served the company for seven years, while Nik Afiq joined Malindo Airways in 2015. 

All three were dismissed on November 1, 2020.

The court ordered Malindo Airways to pay RM596,000 each to Muralitharan and Wai Ming, while Nik Afiq was awarded RM252,000.

Zalina directed that the compensation be paid within 30 days of the judgment, with interest of eight per cent per annum to be imposed after the 30-day period until full settlement.

In her judgment, Zalina said the court found that Malindo Airways dismissed the three pilots without sufficient evidence, despite the company’s claim that it was facing financial difficulties due to the Covid-19 pandemic.

She ruled that reinstatement was inappropriate as the relationship between the claimants and the company had broken down, making financial compensation the most suitable remedy.

Zalina said the airline failed to prove that the dismissals were carried out with just cause or excuse under Section 20(1) of the Industrial Relations Act 1967.

“Although companies are entitled to retrench workers during an economic downturn, such actions must be carried out fairly.

“The company’s argument that it had ceased operations is unconvincing, as operations continued, dividends were paid, and business infrastructure remained intact after the termination date,” she said.

She added that while employers have the prerogative to restructure their workforce during a pandemic, this right is not absolute and remains subject to labour laws.

The court also found that the retrenchment exercise lacked reasonable explanation on employee selection and did not comply with proper procedures.

Zalina said the Last-In-First-Out (LIFO) principle cannot be arbitrarily disregarded without strong justification, even in extraordinary circumstances such as a pandemic.

“The court also took into account the absence of consultations, the short notice period given, and the employer’s failure to produce complete evidence to support claims of redundancy.

“Accordingly, the court ruled that the termination of the three claimants was unlawful and allowed their claims against Malindo Airways,” she said.

Zalina further ordered Malindo Airways to pay financial compensation, including compensation in lieu of reinstatement and related payments, as remedies for the unlawful dismissal.

Nik Afiq was represented by lawyer Mohd Syahril Daud, Muralitharan by Hema Kumar Nageswana Row, Wai Ming by Nur Zur’ain Mat Ramlee, while Malindo Airways was represented by lawyer Jeyandran Ramachandran.