MIAMI – Irish Low-Cost Ryanair (FR) has been sentenced by the court of Marseille due to 127 workers at the Marseilles base not having French employment contracts.
The accusation came from URSAAF, the organization which collects contributions on work in France and from former FR’s employees.
Ryanair has been accused of not respecting French labor laws and not paying the necessary contributions.
The result was a conviction for the carrier headed by Michael O’Leary, with a fine of €200,000, and compensation for damages which amount to approximately over €8m.
Moreover, the court also imposed the obligation to display a flyer at the entrance of Marseille Airport for a month announcing the sentence.
Further Details About The French Court’s Verdict
The Irish airline had already been convicted for the same misconduct in the first instance by the Aix-en-Provence’s court.
With yesterday’s verdict, according to the French authorities, from 2007 until 2011, FR used the Marseille-Marignane (MRS) base without ever having declared its activity to the trade register and Ursaff.
Furthermore, 127 employed at the Marseille airport were under Irish employment contracts, which is not allowed according to French Law.
A 2006 decree provides that foreign companies based in France are subject to local labor laws.
Ryanair will have to pay US$9m (€8.1m) in damages and interest to the civil parties, including URSAAF and Pole Emploi, the French employment office, and four former Pilots.
Moreover, the judgment will also have to be published in four national newspapers.
The Court concluded that FR, “Have not complied with European Union law. In the current context, European law cannot constitute an instrument of welfare fraud.”
The final judgment will go to the Supreme Court, where Ryanair will most likely appeal for a more favorable verdict.