KUALA LUMPUR – A recent Industrial Court ruling in favour of three former Malindo Airways pilots has reaffirmed the importance of lawful employment practices, even during unprecedented economic crises. The court declared that the airline’s decision to terminate the pilots in 2020 lacked credible justification and failed to meet legal procedural standards.
The claimants — Senior First Officer M Muralitharan, First Officer Nik Afiq Farhan Nik Mohd Hilmi, and Captain Foong Wai Ming — argued that they were unfairly dismissed amid the airline’s pandemic-era downsizing. The court agreed, concluding that Malindo did not sufficiently demonstrate financial necessity or conduct the exercise transparently.
Industrial Court chairman Zalina Awang @ Mamat stressed that although companies may restructure during downturns, such actions must be executed fairly and transparently. She found contradictions in Malindo’s claims that it had ceased operations, noting that the airline continued functioning, distributed dividends and maintained business infrastructure beyond the termination date.
The court highlighted significant procedural lapses, particularly the lack of explanation regarding employee selection, disregard of the Last-In-First-Out (LIFO) principle without valid grounds, lack of consultation, short notice period and insufficient documentation to substantiate redundancy claims.
Given the breakdown of trust between both parties, the court deemed reinstatement unsuitable and instead awarded substantial monetary compensation — RM596,000 each for Muralitharan and Foong, and RM252,000 for Nik Afiq — with payment required within 30 days or interest accruing thereafter.
The ruling serves as a reminder that employers remain bound by labour laws even in extraordinary circumstances. Pandemic-driven financial strain, the court stated, cannot override workers’ rights or justify unjust retrenchment procedures.