Aer Lingus to meet Government officials about ‘leave and return’ deal
On Tuesday, RTÉ news reported that SIPTU had confirmed that some staff had received tax demands as Revenue had deemed the scheme not to qualify for favourable tax treatment.
However, last night a spokesperson for SIPTU told the Irish Examiner that no staff had received such tax demands from Revenue.
Under the scheme, about 1,100 staff left in 2008 with redundancy packages. Within weeks, 715 had returned to work on reduced conditions and pay of up to 20%.
The airline sought tax reliefs on the redundancy payments worth around €5m, while staff were able to claim tax rebates worth between €20m and €40m.
Delays in the company providing relevant information to the department relating to the controversial deal is believed to be central to a delay of over two years in a final decision on whether the packages conform with redundancy legalisation.
Yesterday, the airline refused to comment on the issue, although Aer Lingus spokespeople have previously stated they are sure that the deals were “legitimate” under the Redundancy Payments Acts 1967–2007.
However, a Department of Enterprise spokeswoman said the company was yet to fully satisfy the department that the claims meet eligibility criteria.
It is believed that the department had been close to finalising the two-year long evaluation process when new information became available late last month that raised additional issues requiring further clarification from the company.
An urgent meeting was then sought by Government officials with the company prior to the end of 2010, but executives from the airline are yet to meet them. However, they are expected to take place either today or tomorrow.
Concerns about the legality of the redundancy packages is believed to centre around the amount of time between staff being let go and rehired, whether this was less than the minimum four weeks, and the similarity of their new positions to previous roles.
SIPTU trade union said their representatives had been assured again yesterday by the company “that all aspects of the agreement had been endorsed by independent legal and tax advisers commissioned”.
SIPTU divisional organiser Gerry McCormack said the company will have to pay for any losses incurred by members as the result of any successful rebate claims.
“If it transpires that the legal and financial information provided by Aer Lingus was flawed, the company will have to pay for any losses incurred by our members.
“Otherwise, it will have to reinstate the affected members to their previous positions at post-2008 terms and conditions, including reinstatement of service.”
Mr McCormack added that the union accepted the assurances given again to SIPTU by Aer Lingus management “that the agreement is legally sound”.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
