Industrial Court chairman Zalina Awang @ Mamat made the decision after finding the airline had failed to prove that the dismissals of M Muralitharan, Nik Afiq Farhan Nik Mohd Hilmi and Foong Wai Ming were made with a bona fide intention (good faith), Harian Metro reported.
Muralitharan and Foong had served the company for seven years, while Nik Afiq joined in 2015. All three were dismissed on Nov 1, 2020.
Zalina ordered Malindo Airways to pay RM596,000 each to Muralitharan and Foong, and RM252,000 to Nik Afiq, with 8% annual interest if payments were not made within 30 days.
In her judgment, Zalina said 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.
“In general economic downturns, a company may have the right to carry out retrenchments, but it must be done fairly.
“The company’s argument regarding the closure of operations was unconvincing, as operations continued, dividends were still paid, and business infrastructure remained intact after the termination date,” she said.
Zalina said while employers had the prerogative to restructure their workforce during a pandemic, this was not absolute and was subject to labour laws.
She noted that the dismissals did not follow proper procedures, lacked reasonable explanations for employee selection, and disregarded the last-in-first-out principle without justification.
“The court also took into account the absence of consultation, the short notice period, and the employer’s failure to provide complete evidence to support claims of excess staff,” she said.
Zalina also said reinstatement was not suitable due to the relationship that had deteriorated between the pilots and the company, making financial compensation the most appropriate remedy.
As such, she ruled that Malindo Airways had failed to prove the dismissals were based on valid reasons under Section 20(1) of the Industrial Relations Act 1967.
She also ordered the company to pay financial compensation for the unlawful dismissals, including reinstatement-related compensation and other remedies.
Nik Afiq was represented by lawyer Syahril Daud, Muralitharan by Hema Kumar Nageswana Row, Foong by Nur Zur’ain Mat Ramlee, and Malindo Airways by R Jeyandran.