Layoffs must be 𝐟𝐚𝐢𝐫 𝐚𝐧𝐝 𝐩𝐫𝐨𝐩𝐞𝐫𝐥𝐲 𝐣𝐮𝐬𝐭𝐢𝐟𝐢𝐞𝐝.
If not, employees can challenge them in court and win compensation.

A former AirAsia co-pilot, was retrenched in 2020 during the COVID-19 downturn when the airline reduced its workforce. He believed his termination was not carried out fairly, arguing that the company did not properly justify why he, in particular, was selected for dismissal and that proper procedures were not followed.

He then filed a wrongful dismissal claim, and the case eventually reached the Court of Appeal Malaysia. The court examined whether the retrenchment exercise was conducted in a fair and lawful manner, especially in terms of how employees were selected and whether the employer had valid reasons.

The Court of Appeal ruled in his favour, finding that the dismissal was unjustified. It held that even during retrenchment, employers must follow fair selection criteria and cannot terminate employees arbitrarily. As a result, the court ordered AirAsia to pay him about RM147,400 as compensation and back wages, confirming that his dismissal was wrongful.

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