Despite its flaws, AirAsia remains one of the top multinational low-cost airlines in Malaysia. The company has had many heartwarming stories in the past, such as when they celebrated the retirement of their longest-serving flight attendant. Unfortunately for another employee, he received the opposite treatment and has subsequently filed a lawsuit against the company.
According to a report by Free Malaysia Today, a former pilot named Eric Koh tendered his resignation from AirAsia in 2022 after being placed on furlough during the Covid-19 pandemic. He claimed that the airline reduced his salary by 75% during that period, citing flight restrictions due to the pandemic.
The salary cut was not entirely surprising, as other airlines had implemented similar measures due to the virus outbreak. However, the reduction in Eric’s salary was excessive, and as a result, the former pilot was forced to resign, as it was jeopardising his livelihood. The company, however, argued that the pilot had resigned voluntarily. Industrial Court chairman S. Vanithamany told the media that AirAsia had no right to deduct more than 50% of an employee’s salary without their consent.
The court then ordered the airline to pay a total of RM268,620 in compensation (RM36,300) and lost wages (RM232,320) to its former pilot for constructive dismissal. “Based on the facts at hand, it appears that the company imposed these furloughs and unpaid salary schemes on [Koh] without his consent, as he had no choice but to accept them due to a training bond he had signed,” said the court chairman. She also added that the 75% salary reduction was considered unlawful.
The court also noted that AirAsia reported profits in 2021, despite the limited flights during the Covid-19 pandemic. Taking this into account, it further indicated that the furlough and pay reduction measures were not justifiable. Even if Eric Koh had decided to stay with AirAsia, despite being unpaid, there was still a possibility he might have lost his job, as it had been previously reported that hundreds of workers were laid off due to the pandemic.
It was not disclosed what would happen if the company failed to compensate the former employee but whatever the outcome, let’s hope this issue will not be repeated in the future.
