Putra: The Federal Court today granted AirAsia Berhad leave to appeal an Appellate Court ruling that awarded RM147,400 in compensation to a former co-pilot retrenched during the Covid-19 pandemic in 2020.
A three-man bench comprising Justices Datuk Rhodzariah Bujang, Datuk Lee Swee Seng and Datuk Azimah Omar allowed the airline's application by a 2-1 majority.
Justices Rhodzariah and Lee allowed the application, while Justice Azimah dissented.
AirAsia’s lawyer Wendy Lam Mei Kuan proposed seven questions of law, which she said involved important legal principles and matters of public interest for the Federal Court to determine.
Among the questions was whether a subsidiary employer may justify a retrenchment exercise by reference to the financial losses or position of its holding company or related group entities.
Another was whether an employer's use of statutory or contractual medical leave as a negative factor in a selection criterion for retrenchment is permissible in law, or contrary to principles of fairness and public policy.
The Federal Court will also determine whether an employer's reliance on a performance or points-based system, in force prior to the retrenchment exercise, constitutes a fair, valid and objective selection criterion for retrenchment.
On April 14 this year, the appellate court ruled in favour of How Zheng Hong after finding the retrenchment had been carried out without just cause or excuse.
It awarded him RM147,000 in back wages and compensation in lieu of reinstatement, after taking into account compensation previously paid to him by AirAsia Berhad following his retrenchment, as well as earnings received after termination.
How joined the airline in 2009 but was retrenched in June 2020.
On May 15, 2023, the Industrial Court dismissed How's claim, ruling that the company had proved on the balance of probabilities that his termination was with just cause and excuse.
How then filed a judicial review at the High Court, seeking among other things a certiorari order to quash the Industrial Court's decision, as well as a consequential order of compensation in lieu of reinstatement.
However, on Oct 3, 2024, the High Court dismissed the review. He appealed to the Court of Appeal, which allowed his appeal.
At today's proceedings, AirAsia Berhad was also represented by lawyer Wong Jia Ee, while lawyers Lai Chee Hoe, G. Deyvinah and Low Yen Hau appeared for How.
