AirAsia gets final shot to overturn RM147,400 payout to ex-pilot

AirAsia Bhd has been granted a final opportunity to contest a Court of Appeal decision that awarded RM147,400 to a former co-pilot who was dismissed during the Covid-19 pandemic. In a three-member panel, two judges found seven questions of law worthy of consideration, leading the Federal Court to allow AirAsia to appeal. Justice Rhodzariah Bujang, chairing the bench with Justice Lee Swee Seng, will join in the review, while dissenter Justice Azimah Omar will not participate.

Key issues include whether a company can use its parent corporation's financial standing to justify layoffs, or if the employing company's financial situation must be evaluated. The court will also examine whether statutory or contractual medical leave can negatively impact employee retention decisions, and if employers must consider unpaid leave or salary reductions before retrenching staff.

Another question addresses if performance ratings from previous positions can be used without granting employees the chance to improve. AirAsia's appeal centers on whether the Court of Appeal erred by relying on its parent company's consolidated losses, which the company failed to provide its own financial statements for the first half of 2020.

Former co-pilot How Zheng Hong, who was dismissed in June 2020, received RM147,400 in back wages and compensation, accounting for his prior earnings and post-dismissal income.