ADJUDICATION OFFICER DECISION/RECOMMENDATION
Adjudication Reference: ADJ-00005965
Complaint(s):
Act | Complaint/Dispute Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 |
CA-00008280-001 | 21/11/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00008280-002 | 21/11/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00008280-003 | 21/11/2016 |
Date of Adjudication Hearing: 15/02/2017
Workplace Relations Commission Adjudication Officer: Ray Flaherty
Location of Hearing: The Harbour Hotel, Galway
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 and following the referral of the complaints to me by the Director General, I inquired into the complaints and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaints.
Background:
The Complainant commenced employment with the Respondent on 9 January 2006 and resigned her employment with effect from 30 June 2016.
The Complainant has alleged that the Respondent's breached certain provisions of the Payment of Wages Acts 1991 and the Organisation of Working Time Act 1997. |
Summary of Complainant’s Case:
The Complainant submits that she worked as a secretary at the Respondent's national school and that an analysis of her wages shows a large number of anomalies.
It was submitted that the Complainant is due a total of €10,558.03 comprising of unpaid wages as well as payment for public holidays and discretionary days. The Complainant is claiming this amount.
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Summary of Respondent’s Case:
(CA-00008280-001) In response to the Complainant's claim in relation to alleged underpayment of wages, the Respondent acknowledges that it has underpaid the Complainant.
In this regard It was further submitted in evidence that the Respondent had completed a detailed analysis of the Complainant's wages covering the 10 years of her employment. This analysis uncovered a series of both underpayments and overpayments. According to the Respondent's evidence, the net effect of these under/overpayment was that the Respondent owned the Complainant €1,709.11.
It was submitted in evidence on behalf of the Respondent that a cheque in the amount of €1,709.11 was sent to the Complainant on 27 September 2016. However, this was returned to the Respondent by the Complainant on 4 October 2016.
The Respondent submits that the amount of €1,709.11 is the total due to the Complainant and is willing to make this payment.
(CA-00008280-002) In response to the Complainant's claim in relation to unpaid Public Holidays, the Respondent submits that the cognisable period covered by the claim is the six-month period prior to the submission of her claim to the Workplace Relations Commission on 21 November 2016. The Respondent submits that the relevant leave year is defined by Section 2 (1) of the Organisation of Working Time Act, 1997. The Respondent submits that this provides that a leave year is the year commencing on 1 April. The Respondent further submits that any contravention of the Act arising from the Respondent's failure to pay the Complainant in respect of public holidays on the cessation of her employment, relates to entitlements accrued within the period 21 May 2016 to 21 November 2016. On the basis that the Complainant's employment ended on 30 June 2016, the Respondent accepts that the complainant is entitled to payment for the public holiday which fell on 6 June 2016.
(CA-00008280-003) In response to the Claimant's claim in relation to non-payment of discretionary days, the Respondent submits that there is no statutory or contractual entitlement to the discretionary days claimed by the Complainant and, therefore, her complaint in this regard must fail.
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Findings and Conclusions:
(CA-00008280-001) Having carefully considered the evidence provided in relation to the Complainant's claim for unpaid wages, I've taken particular note of a detailed spreadsheet, compiled by the Respondent's accountants, covering the entire period of the Complainant's employment.
From this analysis, it is clear that over the period of the Complainant's employment with the Respondent there were discrepancies in each of the eleven years involved. The discrepancies involved overpayments to the Complainant in relation to four of the years and underpayments in relation to the remaining seven years.
The overall reconciliation of the over/underpayments demonstrates that the Complainant has been underpaid in the amount of €1,709.11 over the period in question. I note that the Complainant has already refused to accept this amount from the Respondent. However, having carefully considered the evidence presented I am satisfied that €1,709.11 represents the amount owed to the Complainant by the Respondent in relation to unpaid wages.
In conclusion on this matter, I find it unacceptable that, in a time when professional payroll systems are readily and reasonably, from a cost perspective, available to employers, the payment of any employee's wages should be subject to the level of inaccuracy and discrepancy the evidence suggests was the case for the Complainant.
Section 4 (1) of the Payment of Wages Act 1991 states as follows: "An employer shall give or cause to be given to an employee a statement in writing specifying clearly the gross amount of the wages payable to the employee and the nature and amount of any deductions therefrom ......". The evidence presented in this case clearly shows that no payslips were provided to the Complainant between the commencement of her employment, in January 2006, and December 2014. The provision of payslips only commenced in January 2015. I am satisfied that had the Respondent been complying with the legislation in this regard and providing the Complainant with a detailed account of wages on a weekly basis, the series of annual discrepancies/inaccuracies would have been avoided.
Section 4 (3) of the Act goes on to state that:
"Where a statement under this section contains an error or omission, the statement shall be regarded as complying with the provisions of this section if it is shown that the error or omission was made by way of a clerical mistake or was otherwise made accidentally and in good faith".
While it is most likely that the discrepancies/inaccuracies in the Complainant's pay over the years of her employment were as a result of clerical mistakes/errors, the extent to which these occurred raise questions as to the appropriateness of the application of the waiver contained in this Section of the Act to the Respondent on this occasion. However, notwithstanding these concerns, I am satisfied that the Respondent did act in good faith in relation to the Complainant's wages.
Consequently, while find that the extent of the discrepancies/inaccuracies and the fact that they occurred in every year for eleven consecutive years must be seen to constitute a contravention of the Act, my decision in relation to an award in this regard is influenced by my belief that there was no evidence of mala fides in the Respondent's actions.
(CA-00008280-002) This element of the Complainant's complaint is brought under the Organisation of Working Time Act 1997 and relates to her claim relating to outstanding Public Holidays.
By the application of the time limit provided for at Section 27 (4) of the Act, I find that the cognisable period covered by the claim is the six months prior to the Complainant's referral of her complaint in this regard to the Workplace Relations Commission on 21 November 2016. Consequently, the cognisable period runs from 21 May 2016 to 21 November 2016.
During this period, the Complainant worked in the Respondent's employment from 21 May to 30 June, on which date her employment terminated. During the period in question the Complainant accrued an entitlement to payment for one public holiday which fell on 6 June 2016.
(CA-00008280-003) From a review of the available information on the Department of Education and Skills website, it would appear that the term "discretionary days" has two applications in the context of post-primary schools.
Firstly, there are discretionary days which apply to the school as opposed to any individual teaching or non-teaching employee. Every primary school is required to open for tuition for a minimum of 183 days in the school year. While certain holiday periods throughout the school year are now standardised, the dates for the start of the end of the school year are not fixed. Consequently, a school may, at its discretion, use additional "discretionary" days (usually three in number) to vary closure of the school at periods throughout the year. However, these discretionary days are applied within the overall requirement that a school be open on 183 days in a school year.
In the case of the Complainant, I am satisfied that in the calculation of wages she was paid for the full complement of 183 days in each year of employment and, therefore, no entitlement exists in this regard.
Secondly, a system exists whereby teachers who undertake personal development when schools are closed qualify for what are called "Extra Personal Location Days" (EPV days). These EPV days only apply to individual teachers and not to non-teaching staff. Consequently, the Complainant has no entitlement in this regard.
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Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaint(s)/dispute(s) in accordance with the relevant redress provisions under Schedule 6 of that Act.
Having carefully considered all of the evidence adduced and based on the considerations/findings as detailed above, I set out below my decision in relation to the individual aspects of the Complainant's complaint:
(CA-00008280-001) With regard to the Complainant's claim for unpaid wages, I find that she is entitled to a payment of €1,709.11 in respect of underpayment of wages during her employment with the Respondent.
Evidence presented in the course of the Hearing suggests that given the level of the Complainant's weekly wage she is below the threshold for PRSI/USC deductions. I direct that this matter be fully clarified with the appropriate authorities prior to the payment being made, to ensure that the Complainant receives appropriate entitlements in this regard.
In addition to the above, I direct that the Complainant should be paid a sum of €750, in compensation for the Respondent's actions relating to their failure to comply with the provisions of the Payment of Wages Act 1991, in relation to the payment of the Complainant's wages. This payment does not attract any deductions as it is paid to the Complainant in compensation for the actions of her employer in this regard.
(CA-00008280-002) With regard to the Complainant's claim for outstanding Public Holidays, I find that the Complainant is entitled to payment in respect of one day, in the sum of €49.20. The clarifications are set over the previous point in relation to deductions also apply in relation to this payment.
(CA-00008280-003)
With regard to the Complainant's claim for outstanding Discretionary Days, I find that she has no entitlement in this regard and, therefore, her complaint in this regard is not upheld.
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Dated: 14/06/2017
Workplace Relations Commission Adjudication Officer: Ray Flaherty
Key Words:
Payment of Wages Act Organisation of Working Time Act Public Holidays Discretionary Days in Primary Schools |