AirAsia loses appeal over RM268,620 award to former pilot
KUALA LUMPUR: AirAsia Bhd has failed in its bid to overturn an Industrial Court ruling ordering it to pay RM268,620 in compensation and back wages to a former pilot who resigned after being placed on prolonged unpaid leave during the Covid-19 pandemic.
AirAsia has lost its appeal to overturn a ruling that ordered the airline to pay RM268,620 in compensation to former pilot Eric Koh. The Industrial Court ruled that AirAsia's decision to place Koh on indefinite unpaid leave during the Covid-19 pandemic constituted a breach of his employment contract. The judge, Datuk Azizan Md Arshad, stated that an employee's consent to temporary unpaid leave did not allow the employer to withhold wages indefinitely.
Azizan also rejected AirAsia's argument that Koh had voluntarily accepted the unpaid leave arrangements and said the airline's promises made in a town hall meeting in November 2021 were legally binding. The court found that AirAsia's financial difficulties were not sufficient to justify the termination of Koh's contractual rights.
The judge upheld the RM268,620 award, which included 24 months of back wages and three months of compensation.
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