Ryanair hit with €8.3m French fine over staff contract dispute
Budget airline Ryanair is facing an €8.3m (£6.55m) fine in France after a court ruled the carrier had breached its labour laws.
The appeal court turned down the airline’s bid to have the decision overturned, after French authorities fined it for avoiding social security payments in the country by putting workers on contracts in Ireland.
The case involves 127 workers at Marseilles airport between 2007 and 2010.
Ryanair must now pay €8.1m in damages to trade unions and the social security system in France and a €200,000 fine as a result of the ruling. The airline had argued that as an Irish company operating aircraft based in Ireland it was entitled to employ staff on Irish contracts. It added that salaried staff had already made social security payments and paid taxes in Ireland.
In October, Ryanair vowed to fight the ruling, with director of communications Robin Kiely adding that the airline would not be forced to “double pay” taxes in France. It may now seek to claw back payment from the Irish government.