FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : MARY WALSH PADDEN - AND - A WORKER (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Flood Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Severance payment
BACKGROUND:
2. The worker commenced employment as a catering assistant with the Company, who run a catering business in Co.Mayo, in July, 1999. In October, 2003, the worker was informed by the Company that the position was being made redundant due to a downturn in business.The Company offered to pay the statutory entitlement and later increased the offer, which was subsequently rejected. The dispute before the Court concerns a claim by the Union on behalf of it's member for increased severance payment. The Company reject the claim.
- On the 22nd December, 2003, the Unionreferred the issue to the Labour Court, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 18th May, 2004.
- The Union agreed to be bound by the Court's Recommendation.
UNION'S ARGUMENTS:
3. 1. The worker has been offered two and a half weeks per year of service inclusive of statutory entitlement. Precedents set for the industry are averaging approximately four weeks per year of service plus statutory entitlements.
2. The worker gave freely of their time, advice and expertise to the Company in the early stages of it's establishment. The Union are seeking a severance package that would reflect the workers involvement in the business and the average settlements for the industry as a whole.
COMPANY'S ARGUMENTS:
4. 1. The Company has been conciliatory towards the worker and has endeavoured to accommodate the worker's demands.
2. An application for a bank loan to fund the severance package was refused due to poor performance of the business. The business continues to deteriorate and the current workforce is now two people.
RECOMMENDATION:
The Court has considered the written and oral submissions made by the parties.
Taking into account all the circumstances of the case and the financial position of the business, the Court finds the Employer's offer to be reasonable and should be accepted by the claimant.
Signed on behalf of the Labour Court
Finbarr Flood
26th May, 2004______________________
J O'C/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Joanne O'Connor, Court Secretary.