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

AirAsia Bhd has been granted permission to appeal a Court of Appeal ruling that awarded RM147,400 to a former co-pilot, How Zheng Hong, who was laid off during the Covid-19 pandemic. The Federal Court unanimously agreed to consider seven legal questions raised in the appeal. These questions center on the company's ability to justify layoffs based on its financial standing, whether statutory or contractual medical leave should factor into termination decisions, and whether employers must first explore alternatives like unpaid leave or salary cuts before making cost-cutting moves.

The Court of Appeal's decision found that AirAsia's parent company, AirAsia Group Bhd, should not have been considered in assessing the company's financial hardship, as it is a separate legal entity. How, who had been with AirAsia since 2009, was dismissed in June 2020, and the Court of Appeal awarded him RM147,400 in compensation for his lost wages and post-dismissal earnings.