Aviation maintenance company fined for late wage payment


THE failure of an aviation and aerospace component maintenance company to comply with the wage payment period for 11 of its employees resulted in a fine of RM66,000 by the court today.

Magistrate Muhammad Syafiq Sulaiman handed down the sentence after Airod Sdn Bhd as the person sued (OKS) and represented by the president of Syarikat Nadi Group, Brigadier General (R) Datuk Abdul Rahim Abdul Rahman, pleaded guilty to all 44 charges read to him.

Muhammad Syafiq in his judgment informed that the fine was given after the consideration of the mitigation appeal of the company representative and took into account the prosecutor’s argument.

“The court also looked at the situation of companies that did not lay off workers. Therefore, a fine of RM1,500 was imposed for each of the 44 charges and we hope it will not happen again,” he said.

Based on the charges, the company is accused of failing to pay wages to 11 male workers aged 35 to 62 for March to June this year.

The act was carried out by the company in the building of the Nadi group of companies in Jalan Lapangan Terbang Subang, Subang, Selangor, on Sept 5.

The company was charged by the Section 19 (1), Employment Act 1955 (Act 265) which can be punished under Section 99A of the same act, which provides for a maximum fine of RM10,000 if convicted for each charge.

All the charges were read out in proceedings that lasted for 20 minutes starting at 12.45pm.

OKS through Abdul Rahim appealed for a minimal punishment and fine due to the company receiving late amounts from related parties during the Covid-19 pandemic.

The company has a total of 420 employees.

“It is not the intention to not pay, but rather the late payment was due to paying off loans in addition to using my own money. The company also does not lay off employees.

“Now, timely payment of wages with airline companies has continued as usual. Therefore, we hope for a minimum fine to ensure good cashflow to the company to buy goods or components,” he said.

Manpower Department (JTK) prosecuting officers Mohamad Rifaee Mohamad Salleh and S Vejaya Letchumi confirmed that the company had previously been fined RM30,000 for the same offence.

“The employer’s failure to pay salary according to the period has some effect on the living wage of the employees, including the commitment of monthly payment for house and car.

“I ask for severe punishment because of repeated offences and as a lesson for this employer and other companies,” Mohamad Rifaee said.