The Court of Appeal is hearing a case brought by Storm Global and Ryanair over the employment status of pilot Jason Lutz.
Earlier rulings by the Employment Tribunal and Employment Appeal Tribunal found that Lutz was a worker and an agency worker of Storm Global, which had hired him to fly for Ryanair.
Both companies maintained that Lutz was self-employed.
If the Court of Appeal upholds the earlier decisions, the outcome may affect the rights of pilots engaged under similar arrangements.
These could include entitlements such as paid annual leave and pension contributions via the agency, as well as parity in terms and conditions with directly employed airline staff.
The case has the potential to influence the wider use of self-employment and agency models, particularly in light of previous rulings involving gig economy workers.
In those cases, individuals working for companies such as Uber and Hermes were found to be workers rather than independent contractors.
Should the appeal be dismissed, airlines using comparable arrangements may be required to review their recruitment and employment models said The British Airline Pilots’ Association (BALPA).
There may also be financial implications, including possible back pay and holiday pay liabilities said BALPA which supports Lutz.
The union urged Storm Global and Ryanair to accept the previous judgments and engage with the union to develop more stable employment models for pilots.
A judgment from the Court of Appeal is not expected for several months.
Amy Leversidge, general secretary at BALPA, said: “The previous rulings are unambiguous, and the fact that Ryanair and Storm Global continue to challenge these decisions is a disgrace.
“This is another nail in the coffin of bogus claims of self-employment, yet Ryanair and Storm Global continue to deny their responsibilities, prolonging the process and delaying justice for affected pilots.
“No worker should be subjected to insecure gig economy-style employment arrangements that strip them of their rights, particularly those in roles where safety is paramount and stability and proper protections are essential.
“If the Court of Appeal upholds the rulings, we will be seeking compensation for pilots who have been denied their rights for far too long.”
Alice Yandle, partner at Farrer & Co, said: “This case will have huge implications for all agency workers in the modern workforce, extending well beyond the aviation industry.
“It will determine whether they are afforded rights to paid annual leave and access to the same basic working and employment conditions as if directly engaged by the hirer.
“We are proud to represent BALPA who remain committed to striving to improve the rights of their members and workers more generally.”
Workplace Journal contacted Ryanair and Storm Global for comment prior to publication.