FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : RICKARDS MOTOR FACTORS LTD (REPRESENTED BY JOHN GLYNN & CO SOLICITOR) - AND - A WORKER (REPRESENTED BY THE UNION OF MOTOR TRADE, TECHNICAL AND INDUSTRIAL EMPLOYEES) DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr. Somers |
1. Compensation
BACKGROUND:
2. The Company operates a Motor Factor business from three different premises. At the premises in question there were three employees. The worker was employed as a parts sales person since April, 2000.
In February, 2003 the employees were informed that the business would be closing in June, 2003 and that all jobs would be made redundant.
The worker obtained alternative employment but on leaving was denied redundancy.
- The issue could not be resolved at local level. The Union referred the dispute to the Labour Court on the 11th of September, 2003, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 10th December, 2003, the earliest date suitable to the parties.
The Union agreed to be bound by the Court's recommendation.
UNION'S ARGUMENTS:
3. 1. In February, 2003 the Company informed its workers that the business would be closing in June, 2003 and that all staff would be made redundant.
2. The Company informed the staff that they should seek employment elsewhere.
3. The worker found alternative employment and on leaving did not receive any redundancy payment as expected.
COMPANY'S ARGUMENTS:
4. 1. The Company did inform all staff that they 'would be' made redundant in June, 2003.
2. The worker left employment voluntarily and is therefore not entitled to redundancy.
3. The Company did not make the worker redundant.
RECOMMENDATION:
The Court has given careful consideration to the submissions of the parties to this dispute.
The Court is satisfied that in reality the claimant was given notice that his employment would be terminated by reason of redundancy. The Court is further satisfied that the claimant legitimately expected that he could leave early if he obtained alternative employment. It was never intimated to him that if he availed of this facility he would lose his entitlement to redundancy compensation.
In the circumstances the Court recommends that the employer offer and that the Union accepts a severance payment equal to three weeks pay per year of service, inclusive of statutory entitlements (if any).
Signed on behalf of the Labour Court
Kevin Duffy
18th December, 2003______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.