ADJUDICATION OFFICER DECISION

Adjudication Decision Reference: ADJ-00003917

Complaints for Resolution:

Date of Adjudication Hearing: 07/11/2016

Venue: Lansdowne House, Ballsbridge, Dublin 4

Workplace Relations Commission Adjudication Officer: Aideen Collard

Procedure:

Pursuant to Section 39 of the Redundancy Payments Act 1967, the Director General of the Workplace Relations Commission (hereinafter ‘WRC’) referred the aforesaid complaints received on 5^th July 2016, to me for adjudication. I proceeded to hearing on 7^th November 2016 and gave the Parties an opportunity to be heard and to present any relevant evidence.  The Complainant represented himself. There was no appearance on behalf of the Respondent, a registered limited company listed on the CRO as ‘Dissolved’. The Respondent and/or any Receiver/Liquidator on its behalf had not made any application for an adjournment or otherwise engaged with the WRC. Before proceeding to hearing, I satisfied myself that all correspondence including notification of the hearing date had issued to the correct registered address. All the correspondence referred to and documentation relied upon by the Complainant was furnished at and/or after the hearing. All evidence presented along with the relevant legal provisions has been taken into consideration.

Complainant’s Submission and Presentation:

The Complainant brought duplicated complaints under Section 39 of the Redundancy Payments Act 1967, seeking redress for the non-payment of statutory redundancy by his former employer, the named Respondent, for purposes of seeking a payment from the Social Insurance Fund.

The Complainant gave evidence that he was employed on a full-time permanent contract as a driver with the Respondent, a Delivery Services Company from 10^th January 2010 until he was made redundant on 15^th January 2016. It appears that the Respondent’s business was based upon one major contract with a large wholesaler. The Complainant outlined his employment history which was uneventful until he received a letter dated 17^th February 2015 from one of the Respondent’s Directors confirming that this contract was not going to be renewed as the wholesaler concerned planned to operate its own delivery service. The letter went on to outline a timeline for the handover and confirmed that the Directors “…are currently exploring new business and are confident that we will continue to trade and continue to grow and extend our business in to the future, for the benefit of all our staff. All we ask in return is that you all continue to work to the high standard that you always have, and assist and co-operate wherever and whenever you are requested to do so.”

The Complainant received a letter from the other Director of the Respondent dated 16^th October 2015 confirming that the contract with the wholesaler in question was coming to an end and stating: “We have explored every avenue available to us to postpone this event, however it was all in vain as they are adamant that it will go ahead as planned.” and “As you can imagine this leaves us with no contract to rebuild our business from and job losses are inevitable, we are pursuing all avenues to secure new business, however to date we have been unable to secure any permanent. We will continue to work to secure a future for this company and our staff, for as long as we can maintain to trade.” On 15^th January 2016, the Complainant received a further letter from the same Director terminating his employment with immediate effect, stating: “It is with deep regret that I must inform you, that the company is no longer in a position to offer you full-time employment from close of business friday 15/01/2016. The decision has been made due to the loss of the (large wholesaler) contract, and our failure to get an adequate replacement for the loss of its turnover. We are however working tirelessly to find a replacement and hope to do so by end February 2016. I would like to thank you for your continued support and hope that when we get back up and running you will return to us on a full time basis.” The Complainant received a final letter dated 18^th January 2016 from the Director in question confirming: “As outlined at our meeting today, I regretfully wish to inform you that, due to the increased downturn within our business, and the financial implications associated with it, the company is not in a position to offer you a redundancy package of any sort. Furthermore the future projections for the company are not looking good, therefore the likelihood of future payment is not feasible at this stage.” From the CRO records, it appears that the Respondent has since been dissolved. As evidenced by the correspondence set out above, the Complainant feels that he was strung along to continue working for the Respondent when it was apparent that it was insolvent for a long time before terminating his employment without any notice and without any statutory redundancy payment. He confirmed that to date, he has not received any such payment.

The Complainant furnished documentation comprising of wage slips and bank statements confirming his salary of €640 gross and €600 net per week at the material time of the termination of his employment. A copy of his record of contributions obtained from the Department of Social Protection also confirms that he has an unbroken record for the period of employment in question.

Respondent’s Submission and Presentation:

There was no appearance on behalf of the Respondent at the hearing, the notification of the hearing date having issued to its correct registered address on 7^th October 2016. There is no record of the Respondent contacting the WRC to indicate any difficulty with attending or to seek an adjournment. A period of at least 28 days has elapsed after the hearing before issuing this decision, to allow for the Respondent or Liquidator/Receiver on its behalf to contact the WRC with an explanation for its non-attendance but no such contact has been made. I also note that the Respondent has not engaged with the WRC or submitted any written submissions or documentation. It appears that the Respondent’s non-engagement arises from the fact that it has since been dissolved. In the circumstances, no evidence has been proffered on behalf of the Respondent in this matter.

Decision:  

Section 39 of the Redundancy Payments Act 1967 requires that I make a decision in relation to these complaints in accordance with the relevant redress provisions under that Section. Firstly, I note that these complaints have been brought within the requisite 12 month period. Based upon the Complainant’s unrefuted evidence as confirmed in supporting documentation, I am satisfied that he was in insurable employment with the Respondent from 10^th January 2010 until 15^th January 2016 without any break in service. I am also satisfied that he was made redundant on 15^th January 2016 when the Respondent went out of business owing to the loss of its main contract. I am further satisfied that the Respondent has not discharged its duty to pay the Complainant his statutory redundancy entitlement. It follows that the Complainant is entitled to a redundancy lump sum payment pursuant to the Redundancy Payments Acts 1967-2014 in accordance with the following:

Date of Commencement of Employment: 10^th January 2010

Date of Termination of Employment: 15^th January 2016

Weekly Gross Pay: €640

NOTE: For the purposes of applying for payment from the Social Insurance Fund, a completed RP50 should be submitted to the Redundancy Payments Section of the Department of Social Protection along with a copy of this decision and all the supporting documentation referred to herein.

Aideen Collard, Adjudication Officer

Dated:   10 March 2017