FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : HSE WEST - AND - A WORKER (REPRESENTED BY IRISH NURSES ORGAINISATION) DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Compensation Payments
BACKGROUND:
2. This case concerns a dispute between the Health Service Executive West (HSE) and the worker in relation to a compensation claim for loss of earnings. The worker was employed as a Staff Nurse in Merlin Park Regional Hospital (MPRH). A subsequent transfer of services to University College Hospital Galway (UCHG) resulted in the application of a loss of earnings formula to affected workers.
The worker's position is that she was notified that the formula would apply to her in full, yet when the compensation was eventually paid by the HSE, it was reduced.
Management's position is that the compensation was to be paid to those who remained in MPRH but that the worker in this case, had applied for and been successful in obtaining a permanent position in UCHG.
On the 1st September, 2008, the Union (on behalf of the worker) submitted a complaint to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969. The worker agrees to be bound by the Court's Recommendation. A Labour Court hearing took place on 17th April, 2009.
UNION'S ARGUMENTS:
3 1 The worker received correspondence from management that the entire compensation would be paid. As a result, an expectation existed that this would be the case.
2 It is unacceptable that management reduced the payments pro-rata on the basis of the worker's new appointment in UCHG, having previously confirmed that full payment would be made.
MANAGEMENT'S ARGUMENTS:
4 1 The compensation was payable to those who remained in MPRH. As the worker applied for a new position in UCHG, her compensation was reduced on a pro rata basis to take account of time spent in MPRH.
2 Managment acted reasonably in reducing the compensation. The specifics of the compensation formula was that it would only be applied to those who remained in MPRH and who had suffered a loss of earnings as a result of the transfer of services to UCHG. The worker in this case did not fully meet the qualifying criteria as a result of her move to a new location.
RECOMMENDATION:
The matter before the Court concerns a claim by the worker seeking the full loss of earnings compensation formula, which applied following the transfer from Merlin Park Regional Hospital (MPRH) to University College Hospital Galway (UCHG) in November 2006. Management had agreed to pay two years loss of earnings, which amounted in the claimant’s case to a total of €17,593.27 however, she only received €4,503.68.
Management stated that the compensation was paid to those remaining in MPRH, as they would incur a loss of premium earnings due to the transfer of services. As the
claimant applied for and was successful in being appointed to a permanent position in UCHG on 3rd June 2007, management decided to reduce her compensation formula
accordingly.
Having considered the oral and written submissions of both parties, the Court notes that the claimant was notified in writing on 2nd August 2007 that she would be paid a compensatory sum of €17,593.27 and no payment was paid out until January 2008, when the reduced payment was made.
The Court is of the view that an expectation was given that the full amount of compensation would be paid, when management as late as August 2007 clearly indicated to all affected staff, including the claimant, that they would be paid the full compensation. It was not until January 2008 that she was notified that she would in fact receive a reduced amount. The Court has taken account of this development in reaching its conclusion and accordingly recommends that as she has not only incurred a loss of earnings since November 2006 but also continues to incur some loss in her new role, then that expectation should be honoured in full. Therefore, the Court recommends that the claimant should be paid the sum of €13,089.59 within four weeks of the date of this Recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
6th _May, 2009______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.