FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : MIDLETON CREDIT UNION (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TWO WORKERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Mr Shanahan |
1. Appeal of Recommendation of a Rights Commissioner ir-99752/10/MR
BACKGROUND:
2. The Claimants have worked for Midleton Credit Union for eleven and fifteen years respectively. An issue arose during May 2011 which resulted in the Workers going on sick leave and Management refusing pay them benefits from the sick pay scheme. The Workers are seeking full payment of monies owed under the scheme while Management maintain that it is solely their prerogative whether to pay or not to pay.
The issue involves a claim by two Workers. The matter was referred to a Rights Commissioner for investigation and recommendation. On the 3rd August 2011, the Rights Commissioner issued his Recommendation as follows:-
"I am satisfied that management clearly made a significant contribution to the unfortunate way that the events in question unfolded..... Accordingly, I hereby recommend that, on a once-off and 'without precedent' basis, Midleton Credit Union should now agree to pay Ms X an ex-gratia lump sum of €1,000 and to pay Ms Y an ex-gratia lump sum of €500".
(Both Workers were named in the Recommendation)
On the 30th August, 2011 both Workers appealed the Rights Commissioners 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 14th September, 2012.
UNION'S ARGUMENTS:
3. 1. The Credit Union has a sick pay scheme and both Workers complied fully with its protocols, yet Management has refused to pay either Worker under the scheme. Withholding payment from the Workers is both unfair and unreasonable in the circumstances.
COMPANY'S ARGUMENTS:
4. 1. The payment of benefit under the Sick Pay Scheme is subject to the discretion of Management and is not an automatic entitlement. Management's decision was not perverse or irrational or in breach of any of the conditions of the scheme.
2. To solely state that Management acted in an unreasonable manner and not also to consider the behaviour of the Claimants at the time and the circumstances leading to them going on sick leave, is fundamentally flawed.
DECISION:
It is accepted that that the terms of the sick pay scheme allows for the exercise of discretion in the provision of benefits. However, that discretion must be exercised reasonably.
The decision to withhold payment to the Workers associated with this claim was taken against the background of an incident which occurred immediately before they became ill. The initial decision may have been understandable but in the circumstances of this case the position should have been reconsidered
Having regard to all relevant consideration in the case, the Court believes that the decision to withhold sick pay in both cases was unreasonable. Accordingly, the Union's appeal is allowed and it is the Decision of the Court that the full amount of sick pay in issue should be paid.
Signed on behalf of the Labour Court
Kevin Duffy
9th October, 2012______________________
JFChairman
NOTE
Enquiries concerning this Decision should be addressed to John Foley, Court Secretary.