Hundreds of pilots are suing Ryanair, claiming they should be paid for holidays.
Former Ryanair pilot Richard Phillips and 261 other people have launched a group action against the low-cost airline.
Aviation recruitment firms Storm Global and Brookfield Aviation International, as well as a Dublin-based tax consultancy named Scanlon Associates, are named as defendants in the complaint that was launched last week in London’s Commercial Court.
In order to augment its full-time personnel, Ryanair has historically relied heavily on contractor pilots employed thru agencies.
Ryanair said that because these workers were not its employes, it was not required to pay them sick or holiday pay under this scheme.
However, this strategy has been criticised more and more. Last year, a landmark Court of Appeal decision determined that Ryanair pilot Jason Lutz was not a self-employed individual but rather an employe of the airline throughout his flights. Ryanair’s request to appeal to the Supreme Court was denied.
According to Mr. Phillips’ and the other pilots’ attorney, Claims Compensation Group (CCG), the ruling “closed the door on the agency defence in aviation.”
In addition to other statutory protections, the firm contends that airline pilots hired thru agencies are entitled to backdated holiday pay and pension payments.
Pilots hired by Ryanair or other airlines thru an agency are encouraged to come forward by CCG on its website, stating that “you may have been underpaid.”
Nevertheless, CCG has not disclosed the projected value of the ongoing case.
The case came when the UK Supreme Court ruled in 2021 that Uber’s drivers were employes with fundamental rights, not independent contractors.
Similar incidents have also affected Ryanair across Europe. In January, the Berlin-Brandenburg State Social Court declared Ryanair’s corporate structure to be a “legal fiction” intended to conceal the employment relationship, ruling that Ryanair pilots at German bases were employes subject to social security contributions.
The case comes at a challenging moment for the low-cost airline, which has been severely impacted by the consequences of the Iranian conflict.
The Irish airline’s profitability fell by 34 percent to €593 million (£503 million) between April and June due to a combination of skyrocketing jet fuel prices and declining consumer demand. Ryanair cautioned that in order to promote summer reservations, it was being compelled to lower fares.
So far this year, the company’s share price has fallen by 16.52 percent.
Requests for comments were made to Ryanair, Storm Global, Brookfield Aviation International, and Scanlon Associates.
Regarding unpaid holiday pay, hundreds of pilots have filed claims against Ryanair.
The Court of Appeal’s decision last year, which determined that a Ryanair pilot was a worker rather than self-employed while flying for the airline, prompted the group claim, which was filed in London.
Richard Phillips, a former Ryanair pilot, and 261 other people are leading the action.
“This case will be heard in England and pertains to UK legislation, but it serves as a reminder for all large businesses that contract working and employment status are increasingly topical areas of employment law,” says James Potts, CEO of Peninsula Ireland.
Because a person’s status determines their work rights, employment status is one of the most difficult aspects of employment but still one of the most crucial.
Inaccurate status classification may result in the denial of fundamental employment rights, such as paid yearly leave.
“Unpaid vacation pay claims in Great Britain are normally restricted to a maximum of two years of back pay; however, this restriction is not applicable when the underpayment was caused by a mislabeling of the individual’s status.
This implies that this kind of vacation pay claim can result in substantial compensation by covering unpaid salaries since the start of employment.
Similar decisions have occurred in Ireland, such as the historic 2023 Supreme Court decision in The Revenue Commissioners v. Karshan (Midlands) Ltd t/a Domino’s Pizza, which determined that Domino’s delivery drivers were employes rather than contractors.
“The delivery drivers’ job status was the main concern here.
Similar decisions have occurred in Ireland, such as the historic 2023 Supreme Court decision in The Revenue Commissioners v. Karshan (Midlands) Ltd t/a Domino’s Pizza, which determined that Domino’s delivery drivers were employes rather than contractors.
“The delivery drivers’ job status was the main concern here.
An employe operates on a contract of service, whereas a contractor operates under a contract for services.
“The topic of job status is anticipated to come under more scrutiny with the planned EU Platform Work Directive, which is scheduled to be implemented by December 2, 2026.
Recent case law both domestically and internationally should be taken into consideration by Irish businesses, especially larger organisations.