25th October 2017
Last week we shared news of the latest Ryanair scandal where complex working models were being used to employ pilots. As this story has progressed, two recruitment firms have increasingly found themselves at the centre of reports.
Ryanair scandal hits recruiters
According to various articles, Brookfield Aviation and McGinley Aviation recruitment firms have been involved in a pre-arranged agreement with Ryanair which, in essence, enables the airline to limit its commitments to pilots, including tax payments.
By enforcing a complex employment structure where pilots are instructed to set up an Irish limited company which supplies themselves to the recruitment firms, who in turn supplies them to Ryanair, many professionals have found themselves facing tax investigations.
While the airline is being considered the main culprit in this activity, the recruitment companies have also found themselves facing negative publicity.
Learn from big brands
There’s no doubt that the global clampdown on fraudulent activity has led to closer scrutiny of employment tax payments and working models. As this continues, recruitment firms of all sizes will potentially find themselves at risk as a result of the activity of others. The fact that a large corporate such as Ryanair and two big-name recruitment companies have been caught up in such a scandal really does demonstrate that no-one is above the law.
Firms need to heed the lessons big players like these are having to learn and ensure they – along with their contractors and partners – remain compliant no matter where in the world they operate. The risk is growing for everyone, and with the world of tax becoming an increasingly complex minefield, trying to navigate this on your own could end up costing you much more than just a fine in the long-run.
There’s no doubt that Ryanair, Brookfield Aviation and McGinley Aviation are facing a brand nightmare as people look to distance themselves from these companies – an issue which could plague them for years to come. If you want to keep your firm on the right side of the law and limit any potential damage to your brand, speak to our experts today.