The Taipei District Court has ruled that EVA Air must compensate a foreign pilot for failing to give him severance pay after laying him off him in 2001.

EVA Air began reducing its staff following the Sept. 11, 2001, terrorist attacks in the US, which had a severe impact on the global airline industry.

Ljubinovic Rada, a pilot from the former Yugoslavia, was laid off in October 2001, but last August he filed a civil suit against the company, asking his former employer to pay NT$1.5 million (US$45,000) in compensation for not giving him severance pay.

The Taipei District Court ruled that Eva Air must give the former pilot NT$1,674,000.

EVA Air can appeal the case to the Taiwan High Court.

The Taipei District Court said that Rada had worked for the company for six-and-a-half years and that as Article 32 of the "Labor Standards Act" stipulates, his employer must provide severance pay when a contract is terminated.

EVA Air lawyers told the court that Rada had already received NT$372,000 - the equivalent of three months' salary - a "compensation fee" and a free ticket to Europe.

Given this, the lawyers said, the company regarded the contract between the employer and Rada had been duly terminated.

The lawyers also showed the court a document with Rada's signature to prove that the latter had agreed to the settlement offered him.

The judge said that since Rada was not familiar with the law in Taiwan, he was not aware he could request severance pay upon being asked to leave the company.

The judge added that although Rada had left his job more than five years ago, he could still appeal for compensation under the "Labor Standards Act".