Air Malta's former HR boss gets a five-figure court win
Court awards former top official €65,000 in unpaid performance bonuses
A court has ordered Air Malta, the former national carrier, to pay its Chief Human Resources Officer €65,000 in unpaid performance bonuses covering the period between 2018 and 2024.
In April 2024, James Genovese, in his role as Chief HR Officer of Air Malta PLC, filed a case before the First Hall of the Civil Court, claiming he was owed performance bonuses.
The case was filed just one month after the debt-ridden airline was replaced by a new flag carrier, KM Malta Airlines, in March 2024.
During proceedings, Judge Audrey Demicoli heard that Genovese began working with Air Malta in 2017 as Head of People and Industrial Relations.
In 2019, he was appointed Acting Chief HR Officer, and in 2020, he signed a three-year contract to formally take on the role of Chief HR Officer.
According to his contracts, Genovese was entitled to annual performance bonuses depending on his role.
Before 2020, he was eligible for a bonus of up to 20% of his annual salary, as regulated by company policy.
After 2020, he was entitled to a performance bonus of up to €10,000, provided that key performance indicators (KPIs) were met.
Genovese argued that KPIs were never set, yet he continued to perform his duties effectively.
He also stated that he was only paid a bonus once, in 2017, despite maintaining his performance even during the COVID-19 pandemic.
The airline argued, among other things, that the granting of bonuses was discretionary.
However, the court found that there were no clear structures or company policies in place outlining how such bonuses were to be awarded.
Judge Demicoli ruled that the company’s failure to establish a proper structure or policy regarding bonus entitlement was a significant shortcoming.
As a result, the court quantified the amount owed and ordered Air Malta to pay Genovese €65,000 in unpaid performance bonuses for the years 2018 to March 2024.
Air Malta operated its final flight on March 30, 2024, after the airline began downsizing in 2021, offering severance packages or public sector placements to laid-off workers, who retained their previous salary scales.
The debt-ridden airline was replaced the next day with a new flag carrier KM Malta Airlines.
The new airline came into being after the European Commission refused to accept a government request for fresh state funding for Air Malta.