Ryanair in trouble again!
Ryanair is in trouble again but this time not with the public over cancelled flights, but with HMRC, over the use of Irish limited companies to limit the employment rights of its pilots
Pilots who apply for a role with Ryanair, once accepted are informed that they must set up an Irish limited company and are made directors of it, under the guidance of accountants recommended by the airline. That company then supplies pilots to one of several agencies, including Brookfield Aviation and McGinley Aviation, who in turn supply the pilot services directly to Ryanair.
The system limits Ryanair’s obligations to the pilots: such as no obligation to pay for sick leave or holiday accrual which in turn keeps the staffing overhead low.
Unfortunately for the Pilots themselves, HMRC have been investigating this structure and it looks likely that the individuals are falling foul of fraud and tax obligations, a seemingly harsh result when the individuals have no option but to agree to this organisational structure if they want to work for the Dublin based airline.
Posted on 01/11/2018 by Ortolan
