Airline ignored spirit of contract in cutting pilot's pay, High Court rules
A Hong Kong-based airline came under fire from a High Court judge for 'snubbing the contractual spirit' by unilaterally cutting the salary of a pilot by 20 per cent.
After its appeal was dismissed yesterday, Hong Kong Airlines said it would take the legal battle to the Court of Final Appeal.
In his judgment, Court of First Instance judge Mr Justice Pang Kin-kee accused the airline of 'twisting the arguments' and 'snubbing the contractual spirit' because the company had not obtained written approval or any other form of consent from the pilot before it cut his monthly salary from HK$135,000 to HK$100,800 for the period between January and April of last year.
The employment contract clearly stated that both sides were obliged to obtain consent for any changes to employment terms, the judge said.
But the airline argued that it genuinely believed the pilot had accepted the pay cut, as he had made no objections to it during the four-month period of the cut. The issue was officially raised by the pilot only when he was fired in May of last year.
At the appeal hearing, barrister Shahmim Khattak, for the airline, argued that the company had honestly believed that the pilot had already accepted the pay cut.