ADJ-00005578

Complainant

Respondent

Anonymised Parties

A Motor Mechanic

A Tyre/Service Store

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-00007749-001

18/10/2016

Complaint seeking adjudication by the Workplace Relations Commission under section 7 of the Terms of Employment (Information) Act, 1994

CA-00007749-002

18/10/2016

The Complainant was employed from 1^st November 2012 until the employment terminated on 18^th November 2016. He had been employed as Manager until 18^th March 2016 when he was demoted to Motor Mechanic. He is paid €480.00 gross per week. The Complainant referred a complaint to the Workplace Relations Commission on 18^th October 2016 alleging the Respondent had breached Section 5 of the Terms of Employment (Information) Act, 1994 and a second complaint under the Payment of Wages Act, 1991that the Respondent had made an unlawful deduction of €100.00 from his wages from 18^th March 2016.

Terms of Employment (Information) Act, 1994. The Complainant stated that when he was demoted on 18^th March 2016 he had not been informed in writing by the Respondent in breach of the Act

Payment of Wages Act, 1991. The Complainant stated that the Respondent had made an unlawful deduction of€100.00 per week effective from18th March 2016 and he is claiming payment of this from 18^th March to 18^th October 2016, the date he lodged his complaint.

Terms of Employment (Information) Act, 1994. The Respondent stated that the Complainant had lodged a previous complaint under this Act in relation to the provision of a Contract of Employment. The Complainant had been provided with a Contract of Employment as a Manager. The Complainant was demoted on 18^th March 2016 following issues identified. The Respondent stated and confirmed that the Complainant had not been informed in writing of a change to his terms and conditions of Employment.

Payment of ages Act, 1991. The Respondent stated that the Complainant had been demoted from his position as Manager and reinstated to his original position of Motor Mechanic. This resulted in a reduction in his wages following this demotion.

Terms of Employment (Information) Act, 1994.

Section 5 of this Act requires an Employer to inform an Employee in writing of any change to his Terms and Conditions of Employment within the period of one month from the date of the change. Both Parties confirmed that following the Complainant’s demotion on 18^th March 2016 from Manager to Motor Mechanic the Respondent did not inform the Complainant of this change to his Terms and Conditions, including the reduction in his wages. I find the Respondent has breached Section 5 of the Act.

Payment of Wages Act, 1991.

This complaint was referred to the WRC on 18^th October 2016 in relation to an alleged unlawful deduction under Section 5 effective from 18^th March 2016. Section 41 (7) of the Workplace Relations Act, 2015 provides that a complaint must be submitted within the period of 6 months of the contravention to which the complaint relates. Therefore the period covered by this complaint is from 19^th April 2016 to 18^th October 2016. Following the Decision of the High Court in HSE V McDermott //// I decide that I have jurisdiction in relation to this complaint to cover this period.

The Complainant was appointed as a Manager having been promoted from Motor Mechanic. He was demoted following a number of issues being identified and was reinstated to his original position of motor mechanic. This was the subject of a previous complaint.

Section 5(2) of the Payment of Wages Act, 1991 provides as follows: “An employer shall not make a deduction from the wages of an employee in respect of – (a) any act or omission of the employee…unless (i) the deduction is required or authorised to be made by virtue of a term (whether express or implied and if express, whether oral or in writing) of the contract of employment made between the employer and the employee” I find that the Complaint did have a Contract of Employment when he was appointed as a Manager. The Complainant was demoted on 18^th March 2016 to his original position as motor mechanic and the Complainant had been informed of this and the consequences arising from the demotion at a meeting with the Respondent on 14^th March 2016.

On the basis of the evidence I find that the Complaint had been demoted from Manager which attracted a weekly gross wages of €580.00 and following his demotion on 18^th March 2013 to Motor Mechanic his wages were accordingly reduced to €480.00 per week. The Complainant had been informed of this at a meeting with the Respondent which was held on 14^th March 2016.

Section 5 (2) of the Act, as quoted above, makes it clear that where there is an implied or express contract of employment, and if express whether this is oral or in writing, then a deduction under Section 5 is not an unlawful deduction. The evidence was that following a meeting between the Complainant and the Respondent on 14^th March 2016 at which the Complainant was informed verbally by the Respondent that he was being demoted to Motor Mechanic, his original position, and that his wages would accordingly be reduced.

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Terms of Employment (Information) Act, 1994 CA-00007749-002

On the basis of my findings above and in accordance with Section 41 (5) of the Workplace Relations Act, 2015 I declare this complaint is well founded. I direct the Respondent to pay the Complainant compensation of €100.00 within 42 days of the date of this Decision.

Payment of Wages Act, 1991-CA-00007749-001

In accordance with Section 41 (5) of the Workplace Relations Act, 2015 and in view of my findings above, I declare this complaint is not well founded. The Complainant was informed verbally on 14^th March 2016 that he was to be demoted and that his wages were to be reduced by €100.00 a week in his role as Motor Mechanic.

Terms of Employment – Section 5

Payment of Wages – demotion – reduction in wages.