FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : EASONS - AND - A WORKER (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Appeal Of A Rights Commissioner's Recommendation R-055645-IR-07/RG
BACKGROUND:
2. The Claimant worked for the Respondent from September 1980 until her retirement in September 2007. The Claimant alleges that when she retired she did not receive a Christmas bonus or the correct number of service days. The matter was referred to a Rights Commissioner for investigation and recommendation. On the 14th April, 2008 the Rights Commissioner issued the following Recommendation:-
- “There are over 1000 employees in the Company. The two issues raised by the Claimant and referred under the Industrial Relations Act have implications for all employees of the Company. SIPTU and the Company reached agreement on a Christmas Bonus Scheme some years ago. It has been custom and practice that one of the criteria for the payment is that the person must be employed in the December in which the Bonus is paid and the week’s pay is calculated on the rate of pay payable on the 1st December. I recommend that any change to the agreement should be negotiated between the Company and all other interested parties. To award the Christmas Bonus to the Claimant, on the basis of her retirement, could not be red circled and would set a precedent for all other employees.
In relation to how service leave is calculated in the year of leaving the Company, I again recommend that the issue should be discussed directly between the Parties because of it’s implications for all employees in the Company. If difficulties remain between the Parties the services of the Labour Relations Commission and the Labour Court can be availed of”.
On the 11th June, 2008, the Employer appealed the Rights Commissioner's Recommendation to the Labour Court in accordance with Section 13(9) of the Industrial Relations Act, 1969.A Labour Court hearing took place on the 17th October, 2008, the earliest date suitable to the parties.- “There are over 1000 employees in the Company. The two issues raised by the Claimant and referred under the Industrial Relations Act have implications for all employees of the Company. SIPTU and the Company reached agreement on a Christmas Bonus Scheme some years ago. It has been custom and practice that one of the criteria for the payment is that the person must be employed in the December in which the Bonus is paid and the week’s pay is calculated on the rate of pay payable on the 1st December. I recommend that any change to the agreement should be negotiated between the Company and all other interested parties. To award the Christmas Bonus to the Claimant, on the basis of her retirement, could not be red circled and would set a precedent for all other employees.
WORKER'S ARGUMENTS
3. 1.The Worker had given 27 years' loyal service to the Company.
2. Calculation of the Christmas bonus payment for part-time staff is on apro-rata basis.
3.Calculation of service days is based on a Worker's years of service.
COMPANY'S ARGUMENTS:
4. 1.The Worker was treated exactly the same as any of the thousands of employees who either retired or left the Company's employment.
2.A Christmas bonus payment should not be paid to those who did not have to work during the very demanding Christmas period.
3.The concession of this claim would have major cost implications for the Company.
DECISION:
The matter before the Court concerns an appeal by the Union on behalf of one employee, of a Rights Commissioner’s recommendation which dealt with a claim for the full application of service leave entitlement and payment of Christmas Bonus to an employee retiring on 1st September 2007. The Company had applied the service leave entitlement on a pro-rata basis in line with her service up to 1st September of that year and did not pay the bonus, as she was not employed at Christmas of that year.
Having considered the submissions of both parties, the Court is satisfied that the Company applied both the service leave days and the Christmas Bonus consistent with its policies on these issues. The Court sees no reason to depart from the approach adopted.
Accordingly the Court does not find in favour of the Union’s claims and rejects the appeal.
The Rights Commissioner’s recommendation is varied accordingly. The Court so decides.
Signed on behalf of the Labour Court
Caroline Jenkinson
3 November, 2008______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Decision should be addressed to Jonathan McCabe, Court Secretary.