THREE former Malindo Airways Sdn Bhd pilots have been awarded a total compensation of RM1.44 million after the Industrial Court allowed their claims for being terminated without valid reason.
The Chairman of the Industrial Court, Zalina Awang@Mamat, made the decision after finding that the termination by the company of the services of the three former pilots was bona fide (good faith).
The three claimants are M Muralitharan; Nik Afiq Farhan Nik Mohd Hilmi; and Foong Wai Ming, reported Berita Harian.
Muralitharan and Wai Ming served the company for seven years, while Nik Afiq started working in 2015 before they were terminated on 1 November 2020.
The court ordered Malindo Airways to pay compensation of RM596,000 each to Muralitharan and Wai Ming, while Nik Afiq received compensation of RM252,000.
Zalina ordered that the compensation be paid within 30 days of the judgment with interest of eight percent per annum calculated after the 30-day period until the payment is fully settled.
In her judgment, Zalina said the court found that Malindo Airways had terminated the three pilots without sufficient evidence, even though the company claimed it was facing financial difficulties due to the COVID-19 pandemic.
She ruled that it was inappropriate to reinstate the three pilots as the relationship between the claimants and the company had deteriorated, and that compensation was an appropriate remedy.
Zalina said the company had failed to prove that their dismissal was made for a valid reason or excuse under Section 20(1) of the Industrial Relations Act 1967.
"In a general economic downturn, a company is entitled to terminate employment, but it must be done fairly.
"The company's argument regarding the closure of operations is unconvincing given that operations are still ongoing, dividends are still being paid and the business infrastructure remains after the date of termination of service," she said.
Zalina said that although employers have the prerogative to organize the workforce during a pandemic, it is not absolute and is subject to the Labour Law.
She said that the court also found that the implementation of the layoffs was not accompanied by a reasonable explanation regarding the selection of workers and did not comply with the procedure.
She said that the Last-In-First-Out (LIFO) principle cannot be arbitrarily set aside without strong justification, even in extraordinary circumstances such as a pandemic.
"The court also took into account the issues of lack of consultation, the provision of a short notice period and the employer's failure to present complete evidence to support the claim of excess workers.
"In this regard, the court ruled that the termination of the services of the three claimants was illegal, thus allowing the claim submitted against Malindo Airways," she said.
Zalina also ordered Malindo Airways to pay financial compensation to the three claimants, including compensation for re-employment and related payments as a remedy for the termination of services that was found to be illegal.
Nik Afiq was represented by lawyer Mohd Syahril Daud; Muralitharan by Hema Kumar Nageswana Row; while Wai Ming was represented by Nur Zur'ain Mat Ramlee and Malindo Airways by lawyer Jeyandran Ramachandran. – December 22, 2025
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