FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : TIPPERARY RURAL AND BUSINESS DEVELOPMENT LIMITED (REPRESENTED BY ARTHUR COX SOLICITORS) - AND - A WORKER DIVISION : Chairman: Mr Haugh Employer Member: Ms Doyle Worker Member: Mr McCarthy |
1. Enhanced redundancy payments.
BACKGROUND:
2. This case concerns a claim for enhanced redundancy.
- TheComplainantsaid he was entitled to an enhanced ex gratia redundancy payment of four weeks’ pay per year of service appropriate to the Higher Education sector.
- The Employer said the Company is in liquidation and there is no evidence of any custom and practice in relation to an enhanced redundancy package for the Institute.
On the 28th April 2016 theComplainantreferred the dispute to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation.
A Labour Court hearing took place on the 29th June 2016.
UNION'S ARGUMENTS:
3. 1. TheComplainantworked for the Employer from the 1st October 2008 to the 31st August 2011 on a fixed term contract.
2. He had to refer a case to the Employment Appeals Tribunal under the Redundancy Payments Act to get his statutory redundancy payment.
3. In 2010, two of his former colleagues were made redundant and received their statutory redundancy together with an enhanced payment of four weeks’ per year of service.
EMPLOYER'S ARGUMENTS:
4. 1. TheComplainantwas paid statutory redundancy.
2. The Liquidator determined that it was not feasible or appropriate to pay an additional payment to theComplainantwhere the process of liquidation had run its course and the assets of the Institute have been realised and debts discharged.
3. The payment of enhanced redundancy was not a preferential payment which would take priority over the other debts the Liquidator was obliged to discharge.
RECOMMENDATION:
Background
Mr Coughlan ("the Complainant")was employed by the Tipperary Rural And Business Development Institute Limited (“the Respondent”) as a specialist/lecturer on a specified purposed/fixed-term contract of employment between 1 October 2008 and 31 August 2011.
The Respondent failed to pay the Complainant his statutory redundancy entitlement on the expiry of his specified purpose/fixed-term contract. The Complainant applied to the Employment Appeals Tribunal thereafter and was awarded a statutory redundancy payment of €4104.00 on 15 August 2014 (Case no. RP985/2012). This was then paid by the Liquidator to the Complainant on 11 September 2014.
The Complainant is now seeking, in the within proceedings pursuant to section 20(1) of the Industrial Relations Act 1969, an enhanced redundancy payment of 4 weeks’ pay per year of service which he submits was applied generally in the higher education sector at the time his employment with the Respondent terminated. The Complainant has quantified the value of his claim at €7748.40 in his letter to the Liquidator dated 21st November 2014.
The Respondent submits that the instant case should be distinguished from previous recommendations of the Court cited by the Complainant in support of his case by virtue of the fact that the Respondent is the subject of a members’ voluntary liquidation and the liquidation process is nearing completion. The Court was informed that there is likely to be surplus of funds available once the company’s debts have been discharged in full by the Liquidator.
Recommendation
The Court does not accept the Respondent’s submission that special circumstances apply to it because it is in liquidation that have the effect of distinguishing the claim- the subject of within proceedings - from previous recommendations of the Court in similar cases.
Having considered the parties’ written and oral submissions the Court recommends payment to the Complainant of the full ex gratia payment he is seeking i.e. €7748.40.
The Court so recommends.
Signed on behalf of the Labour Court
Alan Haugh
CR______________________
11th July, 2016.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.