Belgian court dismisses Ryanair contracts case

A Belgian court has confirmed that former Ryanair crew members who were based in the country were employed on Irish contracts in a ruling that could have broader implications for the company.

In one of a number of such cases that Ryanair is fighting in different jurisdictions, the six former crew members who had been based at its Charleroi hub were seeking to have their contracts recognised under Belgian law, which could have entitled them to €20,000 in bonuses and social payments.

However, the Belgian court dismissed the case, saying that it was not "competent" to hear it and that it should be dealt with under Irish law.

Implications
Ryanair welcomed the ruling and said it confirmed the airline's position that its crew are employed on Irish contracts as they operate on Irish-registered aircraft (which is defined as Irish territory) and pay their taxes in the Republic.

The ruling could have implications beyond Belgium. Ryanair has always maintained that its position is based on EU law and it is facing litigation on the same issue in other jurisdictions. The company is planning an appeal in a similar case in France, this time relating to a number of staff who were based at its former base in Marignane, near Marseille.

Ryanair was ordered to pay €8 million in damages and interest to French social security, pension and employment agencies which claimed that they lost out because the airline employed crew on Irish contracts.

The ruling was based on a 2006 decree, applying French social security charges to foreign airlines, which Ryanair says is contrary to EU law and was designed to protect the "lossmaking Air France". It is taking a similar appeal in Norway.

Appeal
Commenting on the latest development in Belgium, Ryanair spokesman Robin Kiely said the airline welcomed the ruling and pointed out that it upheld EU regulations governing transport workers and mirrored similar rulings in Germany, Italy and Spain. The individuals involved, five of whom worked for sub-contractor, Crewlink, are considering an appeal.

Meanwhile, the airline returned €57.5 million to shareholders yesterday as part of an ongoing share buyback programme. It bought back and cancelled 10 million shares at €5.75 each. Ryanair does not pay regular dividends, but returns cash to shareholders through stock buybacks and special dividends.