Bellew knew he could not join Ryanair rival, court told
RYANAIR’S chief operations officer (COO), Peter Bellew, “knew from the get-go” there was a clause in his contract of employment preventing him from joining a rival for a period of 12 months post his departure from the airline, the High Court heard yesterday.
The claim was made by Martin Hayden SC on the opening day of Ryanair’s proceedings against Mr Bellew arising out of his decision to join rival airline EasyJet as its chief operating officer.
Ryanair CEO Michael O’Leary, in his evidence, said that a non-compete clause was standard in the airline’s contracts of employment for senior managers, who the court heard are known as “Zs”.
Mr O’Leary said Zs must give six months’ notice and it prevents them from working for rival airline for 12 months afterwards.
He said the Zs are also paid a basic salary and a bonus, and also receive share options which are paid out once the senior employee stays with the company for a specific period of time.
The share option scheme, Mr O’Leary said, is designed to promote company loyalty.
While all airlines could be regarded as rivals to Ryanair, Mr O’Leary said that EasyJet would be considered the airline’s main competitor in the low-fares sector.
Ryanair seeks an order requiring Mr Bellew to specifically perform the contract of employment with Ryanair, which includes the non-compete clause.
It also seeks an injunction preventing Mr Bellew, of
Glenconnor House, Killarney, Co Kerry, from acting contrary to the post-termination restrictions in his contract.
Ryanair’s claims are denied. Mr Bellew denies any breach of contract and says the purported clause is unenforceable. He says the non-compete clause was included on the basis he would be included in a share option scheme offered to him in 2018.
He claims that he was not included in that scheme, rendering the non-compete clause null and void.
He also says that he will honour his obligations of confidentiality towards Ryanair after he departs.
Mr O’Leary said that in November 2018 he sent a memo to Mr Bellew about his performance as COO.
Some of the things Mr O’Leary was unhappy with included the COO’s handling of when Ryanair changed its policy regarding baggage.
Mr O’Leary, who told the court he does not use email, said that he was further dissatisfied with a response he received from Mr Bellew regarding his memo.
The hearing continues.