French court rules against Ryanair over labour code breaches

Must pay EUR 10 mln in damages and interest and EUR 200,000 fine

02 October, 17:40

    (ANSAmed) - PARIS, OCTOBER 2 - The low-cost airline Ryanair was fined 200,000 euros Wednesday and ordered to pay 10 million euros in damages and interest over French labour code breaches at the Marseilles-Marignane airport. The Irish company has said it will appeal the decision by the Aix-en-Provence court. However, the ''assets used to commit the infraction'', including four Boeing 737s stationed in Marignane between 2007 and 2011, will not be confiscated. The company announced in a press release that it would be lodging an appeal the decision and ''any attempt by the French authorities to demand reimbursement for taxes already paid in Ireland''. The leading company in the European low-cost airline sector was accused by former employees and URSSAF, the French union which collects and organises labour contributions in France, of breaching the French labour code and not paying the amount due.

    According to French authorities, from 2007 until 2011 Ryanair used the Marseilles-Marignane hub without declaring its activities to the business registry or URSSAF. The 127 employees of the Marseilles airport were employed on an Irish labour contract, while a 2006 decree requires that foreign companies operating in France be subject to local labour laws. The 10 million euros in damages and interests are to be paid to the litigants, including URSSAF and the French employment center Pole Emploi.(ANSAmed).

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