FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : FUJITSU (IRELAND) LIMITED - AND - A WORKER (REPRESENTED BY KILROY SOLICITORS) DIVISION : Chairman: Mr Hayes Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Enhanced redundancy terms
BACKGROUND:
2. The worker commenced employment with the Fujitsu Siemens Computers (UK) in April, 2004, and was employed as a Receptionist and Office Administrator. The company was one of three Fujitsu Siemens companies in Ireland. In April, 2009, it changed name to Fujitsu Technology Solutions and on the 1st October, 2009, the three companies were transferred into one new company called Fujitsu (Ireland) Limited. The worker's case is that on the 9th October, 2009, she was told by the Company's HR Director that she was "surplus to the Company's requirement" and that there was no job for her in the future. She was given a redundancy package of statutory redundancy and an ex-gratia payment of €286.25. The worker is seeking an ex-gratia payment of four weeks' pay per year of service.
The Company did not attend the hearing but in a letter to the Court outlined its case as follows: as a result of the three companies amalgamating the worker's role became redundant. The Company undertook to find alternative work for the claimant and encouraged her to apply for a new role. The ex-gratia payment the worker received is established through custom and practice in the Company. While some workers had received an ex-gratia payment of four weeks' pay per year of service in March, 2009, that was a once-off occasion.
The worker referred her case to the Labour Court on the 9th April, 2010, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 7th July, 2010. The worker agreed to be bound by the Court's recommendation.
WORKER'S ARGUMENTS:
3. 1. The Company is part of a large and profitable multinational and the ex-gratia payment to the worker is neither fair nor reasonable after five years and eight months' service.
2. In March, 2009, a number of workers who were made redundant received an ex-gratia payment of four weeks' pay per year of service. The worker concerned should have received the same.
RECOMMENDATION:
The Court notes that the employer, for defined reasons, decided not to attend the hearing. This was regrettable. However, the employer did set out its position in writing and the Court has taken this information into account in arriving at its recommendation.
Having considered the submissions of both parties, the Court recommends that the worker concerned be paid an enhanced payment of four weeks' pay per year of service in addition to her statutory entitlement under the Redundancy Payment Acts.
Signed on behalf of the Labour Court
Brendan Hayes
20th July, 2010______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.