British Airways plc has been ordered to pay over €222,000 to its former sales manager in Malta by way of terminal benefits.

James Stagno Navarra filed his claim for benefits in the First Hall of the Civil Court after his employment was terminated on October 31 of last year.

Mr Stagno Navarra said that when British Airways decided to terminate its operations in Malta with effect from March 31, 1989 it had entered into a collective agreement with its employees. According to this agreement, the company was to pay its employees a redundancy payment of one-eighth of the employees’ monthly salary as at March 31, 1989 multiplied by the number of months of service with British Airways.

Mr Justice Giannino Caruana Demajo heard that despite the termination of operations, British Airways had retained Mr Stagno Navarra in employment as sales manager with effect from April 1, 1989. His letter of appointment stated with in the event that the company decided to terminate his employment, Mr Stagno Navarra would be eligible for the same terminal benefits as were contained in the collective agreement.

The issue that the First Hall of the Civil Court had to decide was whether the reference to the March 31, 1989 in the collective agreement was a fixed reference to that date or whether it could be applied to the actual date of termination of employment which, in this case, was October 2009.

In its judgment, the court concluded that Mr Stagno Navarra’s terminal benefits were to be computed on the basis of his monthly salary as at October 31, 2009.

The collective agreement had stipulated March 31, 1989 as the date the employment of the company’s other employees was terminated. However, Mr Stagno Navarra’s employment was terminated in 2009 and not in 1989.

On this basis the court ordered British Airways to pay Mr Stagno Navarra €222,926.31 in terminal benefits.