ADJUDICATION OFFICER DECISION/RECOMMENDATION
Adjudication Reference: ADJ-00005344
Complaint(s):
Act | Complaint/Dispute Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under Section 8 of the Unfair Dismissals Act, 1977 | CA-00007569-001 | 12/10/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 | CA-00007569-003 | 12/10/2016 |
Date of Adjudication Hearing: 07/02/2017
Workplace Relations Commission Adjudication Officer: Michael Hayes
Location of Hearing: Galway Maldron Hotel
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 and/or Section 8 of the Unfair Dismissals Acts, 1977 - 2015, following the referral of the complaint(s)/dispute(s) to me by the Director General, I inquired into the complaint(s)/dispute(s) and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaint(s)/dispute(s).
Background:
The complainant was employed as a maintenance manager by the respondent from 4th of November 2009 until the 3rd of October 2016. He was paid €3,729.95 net per month and worked 39 hours per week. The parties made written and oral submission to the hearing.
Summary of Complainant’s Case:
The complainant submits that he was not paid his wages in the four months from the beginning of June to the end of September 2016. His appeals to have the matter remedied made directly to the MD on many occasions fell on deaf ears and he was eventually left with no option but to terminate the employment.
CA00007569-001 The claimant submits that he was constructively dismissed and that failure to pay wages is a long-established ground in constructive dismissal. He relies on the authority of the EAT in Fionnbar Walsh v Atlantis Holiday Group Ltd (UD1370/2009) to advance the argument.
CA00007569-003 The complainant submits that he is owed €14,538.73 net in unpaid wages in the period June to September 2016.
Summary of Respondent’s Case:
The respondent submits that the loss of a large contract and delay in receipt of payments outstanding precipitated a situation at the beginning of 2016 where it found it difficult to meet salary payments. It has struggled ever since to revive the business. The complainant was a senior manager and shareholder in the company and was fully briefed on the situation at all material times.
CA00007569-001 The respondent submits that it did not dismiss the complainant but rather had hoped that he might remain in its employment as he was a valued and indispensable employee. It asserts that his position is still available to him. It does not demur as it relates to the material facts as submitted by the complainant.
CA00007569-003 The respondent accepts that the complainant is owed the sum claimed in this case.
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.
Section 8 of the Unfair Dismissals Acts, 1977 – 2015 requires that I make a decision in relation to the unfair dismissal claim consisting of a grant of redress in accordance with section 7 of the 1977 Act.
CA00007569-001 The law is well established as it relates to the material facts in this case and I am therefore satisfied that the complaint is well founded. The appropriate remedy in all of the circumstances in my view is one of compensation in the amount of €20,000 (say twenty thousand euro)
CA00007569-003 The material facts and extent of unpaid wages are agreed between the parties and therefore I find that the complaint is well founded. I hereby require that the respondent pay the claimant €14,538.73 (say fourteen thousand five hundred and thirty eight euro and 73 cent) net in compensation for breach of s. 5 of the Act.
Dated: 12th June 2017
Workplace Relations Commission Adjudication Officer: Michael Hayes