ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00007256
| Complainant | Respondent |
Anonymised Parties | Senior Manager | School Publications |
Representatives | Andrew Nugent BL, Peter Nugent & Company, Solicitors, Emily-Jane Homan | James McManus |
Complaints:
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-00011244-001 | 10/05/2017 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00011266-001 | 11/05/2017 |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 |
CA-00011266-002 | 11/05/2017 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00011266-003 | 11/05/2017 |
Complaint seeking adjudication by the Workplace Relations Commission under section 7 of the Terms of Employment (Information) Act, 1994 |
CA-00009760-001 | 17/02/2017 |
Complaint seeking adjudication by the Workplace Relations Commission under Regulation 18 of the European Communities (Road Transport)(Organisation of Working Time of Persons Performing Mobile Road Transport Activities) Regulations 2012 - S.I. No. 36/2012 |
CA-00009760-002 | 17/02/2017 |
Date of Adjudication Hearing: 06/09/2017
Workplace Relations Commission Adjudication Officer: Eugene Hanly
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 and Section 8 of the Unfair Dismissals Acts, 1977 - 2015, 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 was employed as a Senior Manager from 1st January 2014 to 1st January 2017. He was paid €35,000 per annum. He has claimed that he did not get a written contract of employment, worked excessive hours, did not get a Sunday premium, is owed wages and was constructively dismissed. |
1) Terms of Employment (Information) Act 1994 CA 9760-001
Summary of Complainant’s Case:
No contract of employment was issued. There was a transfer of employment from a named trader to the Respondent in 2013/2014. The obligation transferred to the Respondent to produce a contract of employment. The Respondent t has breached Sec 3 of this Act and he is seeking four weeks wages in compensation. |
Summary of Respondent’s Case:
There was no transfer of undertaking. Both parties had worked together for over 20 years. The Respondent accepts that the Complainant did not receive a complete contract of employment. A Staff Handbook was issued. Subsequent to the hearing the Respondent forwarded a copy of the staff handbook and an e-mail dated 23rd November 2015 attaching the updated book.
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Findings and Conclusions:
I note the evidence that the staff handbook update was issued on 23rd November 2015.
I find that the Respondent did not issue a written statement of the terms and conditions of employment as per the requirements of Sec 3 of this Act. Sec 3 (1) of this Act states, “ An employer shall, not later than 2 months after the commencement of an employee’s employment with the employer, give or cause to be given to the employee a statement in writing containing the following particulars of the terms of the employee’s employment” Sec 7 (2) (d) of the Act states, “compensation of such an amount (if any) as is just and equitable having regard to all the circumstances but not exceeding 4 weeks remuneration”.
I find that the Respondent has breached Sec 3 of this Act. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
I have decided that the Respondent has breached Sec 3 of this Act and I order the Respondent to pay the Complainant €1,500 within six weeks of the date below.
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2) Organisation of Working Time of Persons Performing Mobile Road Transport Activities SI 36/2012. CA 9760-002
Summary of Complainant’s Case:
The Complainant accepted at the hearing that he was not covered by this legislation |
Summary of Respondent’s Case:
This evidence was accepted. |
Findings and Conclusions:
I find that this complaint was misconceived. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
I have decided that this complaint was misconceived.
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3) Organisation of Working Time Act 1997 CA 11266-001/ 003
Request to extend the time limit
The Complainant stated that he had sought legal advice in March 2017. He had acted without advise prior to that. After the dismissal there was engagement about resolving the issue. In the interest of fairness the time limit should be extended.
The Respondent didn’t make a case regarding the time limit.
Decision on request to extend the time limit.
I note the evidence that the Complainant consulted a solicitor in November 2016, not March 2017.
I find that no reason was given to explain the failure to submit a complaint earlier.
I have decided not to extend the time limit.
This complaint was presented to the Commission on 17th February 2017. Therefore the period that may be investigated is 18th August 2016 to 1st January 2017 (date of termination).
Summary of Complainant’s Case:
1)Excessive hours - CA 11266-001 |
He stated that he was required to work excessive hours. Meetings were arranged for places a far off as Donegal or Cork or Kerry for 9.30am. He was required to leave home at very early hours such as 5.00am in order to get there in time and to set up for the meetings. He was then required to drive back home and repeat this most days. He worked an average of 77.7 hours per week.
2) Sunday premium – CA 11266-003
He stated that most Sundays were spent travelling. There were no discussions regarding salary.
Summary of Respondent’s Case:
1)Excessive hours - CA 11266-001 The Respondent stated that the Complainant scheduled about 35 to 40 % of all his work. He had a lot of autonomy. He was a senior manager in the company. He refused to stay over at any of the locations and insisted upon returning to his home in Dublin irrespective of the distance from home. He was requested to stay over but he regularly declined to do so. He never raised a query during his employment. Based on the subsistence claims he may have worked 50 hours per week on average during 2015 bit it was 48 hours per week for the other years. |
2) Sunday premium – CA 11266-003
He was paid an all-inclusive salary which included Sunday working. He had the option of taking time in lieu for any Sunday working if he wished.
Findings and Conclusions:
1)Excessive hours - CA 11266-001 I note the conflict of evidence in this matter. I note that the Complainant accepted that he drove home every night irrespective of where he had been working that day. I note that the Respondent did not maintain any working hours’ records. I note that they accepted that he worked in excess of 48 hours per week in 2015. Nevertheless I find that the Complainant has exaggerated his complaint. I find that he has to accept blame for much of the hours that he worked due to his decision to return home each evening. I find that while the Complainant had a degree of autonomy the responsibility rests with the Respondent to ensure that their employees adhere to the law concerning hours of work. On the balance of probability I find that the Complainant worked in excess of 48 hours per week. I find that the Respondent has breached Sec 15. |
2) Sunday premium – CA 11266-003
I find that there were a very limited number of Sundays worked.
I note the contract of employment; the salary is all inclusive and covers Sunday working.
I also note that he had the option of taking time in lieu.
I find that this part of the complaint is not well founded.
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
I have decided that the Respondent has breached Sec 15 of this Act.
I order the Complainant to pay the Respondent €500.00 in compensation for breach of his rights under this Act.
4) Payment of Wages Act 1991 CA 11266-002
Summary of Complainant’s Case:
The Complainant has claimed unpaid wages as follows: In 2014 he was paid €17,501 but his P60 stated that he was paid 35,000 gross less 2,050.01 PAYE, 1,400 PRSI, USC 1,768.80 netting 29,781.1, leaving a short fall of €12,280. 2015: he was paid 17,242 the P60 stated 35,000 gross, 2,050.01 PAYEE, 1,400 PRSI, 1594 USC netting 29,955.39 leaving a shortfall of €12,713.39. 2016: There was no claim in respect of 2016 made on the day. His representative stated that this was a rolling debt and cited the Employment Appeals Tribunal PW/16/1997 in support. Expenses were claimed but it was accepted that they are not covered by this Act. |
Summary of Respondent’s Case:
The Respondent stated in a written submission subsequent to the hearing that no wages are owing for 2014. He didn’t believe that anything was owed for 2015 but maybe €2,500 is owed. He agreed to check this out and revert to the Commission. In 2016 there was an overpayment.
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Findings and Conclusions:
I note that this complaint was presented to the Commission on 17th February 2017. Therefore the period that may be investigated is 18th August 2016 to 1st January 2017(date of termination). I note from the information provided by the Respondent listed as page 9 there was a payment of €2,496.29 made on 4th January 2016 relating to 2015. While 2015 is outside the scope of investigation it shows that this amount has been paid. This matter had been signalled by the Respondent. I note that the Respondent was to advise if €2,500 approximately was owing in 2015.He made no response to this, despite agreeing to do so. Therefore I find that in the year 2016 the Complainant was paid €35,072.46 less €2,496.29 paid in respect of 2015 thus leaving a shortfall of €2,496.29 for 2016. Therefore I find that the Complainant is owed €2,496.29 gross. Sec 6(2) “the commissioner shall order the employer to pay to the employee compensation of such an amount … not exceeding (a) the net amount of wages”
I find that any claim in respect of expenses may not be considered. As per Sec 1 (1) (b) of this Act expenses are not part of wages “ the following payments shall not be regarded as wages for the purpose of this definition (1) any payment in respect of expenses incurred by the employee in carrying out this employment.”. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
I have decided that this claim is well founded in part only.
I order the Respondent to pay the Complainant €2,496.29, less statutory deductions within six weeks of the date below.
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5) Unfair Dismissals Act 1977, CA 11244-001
Summary of Complainant’s Case:
The Complainant stated that his wages were not paid on time. He was regularly left short. He had to work excessive hours. He had had an agreement with the Respondent that the School App that they had developed would be shared between them. In April 2016 he received a letter from the Respondent regarding the shared ownership of the School App Product. These discussions never happened. The Respondent stonewalled the project. In November 2016 the Respondent sought €150,000 investment for a 20 % partnership of the App. Another individual was offered 10 % for €20,000.Because of all this stress he became unwell and took one week off. He resigned his position around 1st January 2017. He found work on 20th February 2017 at €37,000 per annum. He has claimed that he had no option but to resign his position. The Respondent’s failure to pay wages over a three year period or to refund expenses is of itself sufficient grounds to justify a constructive dismissal. This together with the Respondent’s refusal to honour the agreement to share the App left him with no option but to resign his position. He has claimed constructive dismissal. He has sought compensation. |
Summary of Respondent’s Case:
The Complainant was an employee of the Respondent. There was never any agreement about any share of the business. He stated that when he asked where he Complainant got the idea that he would get half of the business he replied that he had assumed that he would get it. So it was in his head and nowhere else. The Complainant was very naive about the business. This business had about €700,000 invested in it. Why would he think that a business would go through what it had and then to give half of it away. The Respondent asked the question why did the Complainant not stake his claim earlier? Two investors joined the business and he never queried the implications of this on his value. He had no value in this business. He was never offered to invest money in this business. The School App lost about €15,000 in 2016 under his stewardship. They had discussed ownership but he was naive enough to think that he would get ownership for nothing. He left the business when it was nearing closure. He was upset that the Respondent was not giving him half the business for nothing. They had discussions and a value of €100,000 was placed on the buy-in. Around November 2016 they discussed and shook hands on acceptance of a buy-in of 20 % for €100,000. The Complainant then returned to advise that he didn’t have the money to invest. At the end of November one Sunday night he cleared out his office. The Respondent received a letter from the Complainant’s solicitor in November 2016. However he never returned and never formally resigned his position. It was April before the P45 was issued. The Complainant did not give the Respondent an opportunity to address any of his problems. The Complainant e-mailed the Respondent in April seeking a meeting just to chat, not a business meeting. They did meet and no substantive issues were discussed. There was no dismissal, he cleared out his desk and never returned. |
Findings and Conclusions:
Definition Sec 1(b) “the termination by the employee of his/her contract of employment with his/her employer, whether prior notice of the termination was or was not given to the employer, in circumstances in which because of the conduct of the employer, the employee was or would have been entitled, or it was or would have been reasonable for the employee, to terminate the contract of employment without giving prior notice of the termination to the employer”.
In a constructive dismissal claim the burden of proof shifts to the person making the claim. They also have to demonstrate that they were justified in their decision and it was reasonable for them to resign. The claimant needs to demonstrate that they have no option but to resign. In addition there must have to be something wrong with the employer’s conduct.
In UD 1146/2011 the Employment Appeals Tribunal held “in such cases a high level of proof is needed to justify the Complainant’s involuntary resignation from their employment, i.e. he must persuade the Tribunal that his resignation was not voluntary”.
It is well established that the Complainant is required to exhaust the company’s internal grievance procedures in an effort to resolve her grievance prior to resigning and initiating a claim for unfair dismissal. In UD1350/2014 M Reid v Oracle EMEA Ltd the EAT stated; “It is incumbent on any employee to utilise and exhaust all internal remedies made available to him or her unless he can show that the said remedies are unfair”
Tierney v DER Ireland Ltd UD866/1999 “central to this is that she shows that she has pursued to a reasonable extent all internal avenues of appeal without a satisfactory or reasonable outcome having been achieved”.
I note in the EAT case John Travers v MBNA Ireland Ltd [UD720/2006] it stated, “We find that the claimant did not exhaustthe grievance procedure made available to him by the respondent and this proves fatal to the claimant’s case…In constructive dismissal cases it is incumbent for a claimant to utilise all internal remedies made available to him unless good cause can be shown that the remedy or appeal process is unfair”.
The EAT in Donnegan Vs Co Limerick VEC UD828/2011 stated,”In particular, the claimant must show that the respondent acted in such a way that no ordinary person, could or would continue in the workplace”. Also the respondent’s conduct was “not so unfair or so damaging to the claimant’s rights and entitlements that she hid no option but to resign her position”
Murray v Rockavill Shellfish Ltd [2002] 23 ELR 331 the EAT stated, “It has been well established that a question of constructive dismissal must be considered under two headings, Entitlement and Reasonableness. An employee must act reasonably in terminating his contract of employment. Resignation must not be the first option taken by the employee and all other reasonable options including following the grievance procedure must be explored. An employee must pursue his grievance through the procedure laid down before taking the drastic step of resigning”.
The Labour Court UDD 1635 Mary Kirrane v Barncarroll Area Development Co Ltd stated, “Where constructive dismissal is contended for it is for the person making the claim to establish that the behaviour of the employer was such as to leave the appellant no alternative but to terminate the employment or that the employer’s behaviour has fundamentally undermined the employment relationship. The person claiming constructive dismissal has an obligation to access available grievance procedures in a course of attempting to deal with whatever situation has led to consideration of termination of the employment”.
McCormack v Dunnes Stores : EAT UD 1421/2008 “The notion places a high burden of proof on an employee to demonstrate that he or she acted reasonably and had exhausted all internal procedures formal or otherwise in an attempt to resolve her grievance with his/her employers. The employee would need to demonstrate that the employer’s conduct was so unreasonable as to make the continuation of employment with the particular employer intolerable”.
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Therefore in order for the Complainant to succeed he has to first establish that the Respondent’s behaviour was such that he could not continue working there. He had to have given the Respondent an opportunity to be appraised of his grievances and then given an opportunity to deal with them.
I find that in this case both parties had worked together for over 20 years.
I note that the business had encountered financial problems.
I note that the Complainant had been paid in an erratic manner but he understood this.
I find that there had been considerable confusion over Complainant’s expectation that he was to get ownership of the School App but no consideration was discussed.
I find that the Complainant had expectations from this business that were not based on business realities and regrettably his expectations were not met.
I did not find any business basis to ground his expectations.
I did not find any evidence of him raising grievances with the Respondent before he cleared out his desk.
I find that he cleared out his desk in November and then had his solicitor write to the Respondent.
I find that the Complainant did not return to this business after he cleared out his desk
I find that he did not formally raise any grievances before he left the business.
I find that he did not give his employer an opportunity to address his concerns.
I find that the Complainant has not met the benchmarks set out in the above references from the EAT and Labour Court.
As a consequence I must conclude that the Complainant has not established a case for constructive dismissal.
Decision:
Also 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.
I have decided that this complaint fails.
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Dated: 16th November 2017
Workplace Relations Commission Adjudication Officer: Eugene Hanly
Key Words:
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