Hundreds of pilots have filed a claim against Ryanair over unpaid holiday pay. The group claim, which was filed in London, follows a ruling by the Court of Appeal last year which found a Ryanair pilot was a worker rather than self-employed when flying for the airline.
The lawsuit is being led by former Ryanair pilot Richard Phillips, alongside 261 others.
James Potts, CEO at Peninsula Ireland, says that this case serves as a reminder for all large businesses that contract working and employment status are increasingly important areas of employment law.
Employment status is one of the most important areas of employment because someone’s status dictates their employment rights.
To wrongly classify status can mean the denial of basic employment rights, including paid annual leave.
In Great Britain, unpaid holiday pay claims are typically limited to a maximum of two years of back pay but, importantly, this restriction is excluded when the reason for underpayment was a mislabelling of the individual’s status.
This means this type of holiday pay claim can cover unpaid wages since employment began, resulting in significant compensation.
In Ireland, similar cases such as the landmark 2023 Supreme Court ruling in The Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino’s Pizza, which found that Domino’s delivery drivers were employees, not contractors, have set a precedent.
Related: Glencore eyes Australian stock market listing
The key issue here was the employment status of the delivery drivers, which is determined by whether they work under a contract for services or a contract of service.
A contractor works under a contract for services, whereas an employee works under a contract of service.
With the upcoming EU Platform Work Directive due to be transposed by 2nd December 2026, the subject of employment status is likely to come under further scrutiny.
Businesses in Ireland, and larger corporations in particular, should take note of recent case law both at home and further afield.
Ryanair has been contacted by BusinessPlus.ie for comment.
The group claim, which was filed in London, follows a ruling by the Court of Appeal last year which found a Ryanair pilot was a worker rather than self-employed when flying for the airline. (Pic: Nicolas Economou/NurPhoto via Getty Images)
“Businesses in Ireland, and larger corporations in particular, should take note of recent case law both at home and further afield.”
Leave a Reply