ADJUDICATION OFFICER DECISIONS
Adjudication Reference: ADJ-00005023
Parties:
| Complainant | Respondent |
Anonymised Parties | A Senior Investigator | A Fire Investigation Firm |
Complaints:
Act | Complaint Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 |
CA-00004967-001 | 27/05/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00004967-002 | 27/05/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under Regulation 15 of the European Communities (Organisation of Working Time) (Mobile Staff in Civil Aviation) Regulations 2006 - S.I. No. 507 of 2012 |
CA-00004967-003 | 27/05/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under section 27 of the Organisation of Working Time Act, 1997 |
CA-00004967-004 | 27/05/2016 |
Complaint seeking adjudication by the Workplace Relations Commission under Section 14 of the Protection of Employees (Fixed-Term Work) Act, 2003 |
CA-00004967-005 | 27/05/2016 |
Date of Adjudication Hearing: 23/02/2017
Workplace Relations Commission Adjudication Officer: Kevin Baneham
Procedure:
On the 27th May 2015, the complainant referred complaints to the Workplace Relations Commission pursuant to the Payment of Wages Act, the European Communities (Organisation of Working Time)(Mobile Staff in Civil Aviation) Regulations, the Organisation of Working Time Act and the Protection of Employees (Fixed-Term Work) Act. The complaints were scheduled for adjudication on the 23rd February 2017. The complainant attended the adjudication. Peninsula Business Group represented the respondent and one witness, a company director, attended on its behalf.
In accordance with Section 41 of the Workplace Relations Act, 2015 following the referral of the complaints to me by the Director General of the Workplace Relations Commission, 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 is a Senior Investigator and the respondent is an independent fire specialist providing advice and expertise to clients. The complainant was employed by the respondent from the 1st April 2012 to the 31st December 2015. His gross monthly pay was €6,500. The complainant asserts that he is owed monies at the end of his employment. The respondent denies the claims. |
Summary of Complainant’s Case:
In December 2010, the complainant began working with the respondent as a consultant. He became a full-time employee in April 2012. On the 21st June 2013, he and the respondent reached an agreement that the complainant would have a 10-hour billable day, allowing him a €230 allowance when he achieved this. He outlined that on the 29th April 2015, there had been a fire in a storage unit and it had destroyed everything. The complainant said that he had been under pressure between April to October 2015 when an allegation of fraud had been made against him. This was the subject of a grievance hearing on the 6th November 2015, which found that nothing wrong had happened.
The complainant resigned from his employment on the 30th September 2015 and gave three months’ notice. On the 2nd October 2015, he emailed the respondent to agree a shorter notice period. The respondent declined this and wanted the complainant to work until the 31st December 2015. The complainant had ten days of outstanding annual leave and the respondent agreed that this would be paid. The complainant’s letter of the 5th October 2015 gave the reasons for his resignation. After this, the complainant’s working environment changed. The respondent claimed title to both his phone and his phone number. He was told that he could not contact any of his clients and had to obtain the permission of the respondent before doing so. The complainant said this was stressful as the respondent had been very successful and he had good personal relationships with clients.
At this time, the complainant was assigned to work on a project at a named location in the United Kingdom and he spent one to two weeks at this location. This was the first time he had supervised a whole job for an extended period in the UK. He seemed to be the busiest person in the company and was bringing in €2,500 per day in billable hours.
The complainant outlined that he had taken sick leave because of work-related stress. His periods of sick leave were the 16th October to the 2nd November 2015 and the 9th to the 13th December 2015. He had been asked to return to the UK location while on sick leave, but he could not go.
On the 17th December 2015, the complainant met with a representative of the respondent to return the various items listed in the inventory. There were a couple of items he did not return because he never had possession of them, or because they belonged to him. He never had a fleece or jacket belonging to the respondent, and the printer and most of the hand tools were his. On the 18th March 2016, the complainant was told that he needed to return additional items, for example a monitor and a harness. He did not have these items and they may have been destroyed in the fire. He said that he had completed a post-fire inventory and sent this to the respondent offices in the UK.
In respect of his pay, the complainant said that his gross pay was €6,500 per month. He was also entitled to mileage and expenses for purchases. The agreement was that if he accrued billable hours of more than 10 hours in a day, he would receive an allowance of €230. Billable hours were inputted into an IT system and this would include travel time to and from a site. The complainant said that he had worked up six days while on the UK site where he was entitled to the €230 allowance for each day. He also accrued expenses of around €117.
The complainant outlined that he was entitled to compensation of €4,124.14 for days owed for sick pay, annual leave and time off in lieu of work.
The complainant said that he should have received an overnight allowance for the work at the UK location, and referred to a June 2013 email to this effect. He had not been told that the overnight allowance was not paid for overnight trips within the UK and Ireland and the first he knew of this was after he left the respondent.
In respect of the complaints made pursuant to the European Communities (Organisation of Working Time)(Mobile Staff in Civil Aviation) Regulations and the Protection of Employees (Fixed-Term Work) Act, the complainant said that he had incorrectly filled in the WRC complaint form and these claims were selected in error.
In reply to the respondent, the complainant said that a significant portion of the work was not billable. One would do well in billing 25 hours in a week. At this time, he had restricted access to an IT system, so that when he logged on he could only see the cases selected by the respondent. While the complainant had some 300 cases, most had been concluded and some were still open. In respect of the 27 non-billable hours in the week of the 5th October 2015, the complainant said that one could work up such a number of non-billable hours in a week. He had not been able to use his phone and could not contact clients in this week. He did not receive administrative support in this week and had to do more administration than normal, reducing the number of billable hours. He commented that there were weeks where he worked 50 hours but could only bill for 15 hours. He had also been the highest earner in the company for a time. The complainant said that he refused to hand over his number to the respondent and he still missed calls for him. In respect of annual leave, the complainant said that he no longer had access to his annual leave records, but that on the 23rd February 2015, he had 24 days of annual leave and on the 26th May 2015, he had 19.5 days annual leave. In respect of his entitlement to TOIL, he said that as of the 22nd September 2015, he had 10 days remaining. He emailed the respondent about this entitlement in October or November 2015 and this figure was not challenged. The complainant said that he was entitled to 18 days of sick leave, calculated pro rata on his time in employment with the respondent, i.e. above three years but less than four years. He had only been paid for 12 days of sick pay. He had met staff of the respondent on the 15th and 17th December and this represented work. He had not been paid for the December 2015 public holidays. In concluding comments, the complainant said that he had not been treated fairly. |
Summary of Respondent’s Case:
The respondent outlined that the complainant’s contract of employment provided for a three-month notice period and company policy was that the respondent could direct employees not to contact clients. It was also entitled to collect items it owned from the complainant. The respondent stated that the overnight allowance was not available for work undertaken within the United Kingdom and Ireland, and referred to earlier periods where the complainant had not been paid this allowance. They were periods of work on the 10th October 2013, the 13th February 2014, the 30th July 2014 and the 15th October 2014. It also referred to the jobs in the UK of the 9th and 18th November 2015. It submitted that the complainant had received his entitlement to 15 days of paid sick leave.
The complainant’s last recorded day of work for the respondent was the 24th November 2015. He obtained three days of sick leave in December and was also paid for the public holidays in this month.
In respect of the work at the UK location, the respondent said that the complainant had a monitoring role, as opposed to a supervisory one. They agreed with the complainant that this would end in mid-December but that he would be paid until the end of the month. His last, official day of work was to be the 31st December 2015.
The respondent outlined that a schedule of work had been devised to ensure that the complainant completed outstanding reports before the end of his employment. All this work was billable. It commented that the complainant had accrued 27 hours of non-billable work in the week of the 5th October 2015 and this should not have occurred. The complainant then went on sick leave and others had to do this work. These 27 hours were deducted from the complainant’s pay in December 2015, an amount of €719.44. It was entitled to make this deduction as the complainant had not followed an instruction regarding completing billable work.
The respondent said that the complainant had a contractual entitlement to 25 days of annual leave. He had carried over two days into 2015 and accrued two TOIL days. The respondent said that the complainant had taken annual leave over the following periods: 16 – 20 February, one day in April, 18 – 22 May, 2 – 6 June, 31 July – 4 August and 14 – 24 August 2015. A further period of the 25 – 30 November was set off against the four days built up or carried over by the complainant. The public holidays were the 25th and 28th December 2015. The complainant was paid the amount he was due of €967.99, remitted to him by electronic transfer.
In reply to the complainant, the respondent submitted that the complainant was only entitled to 15 days of sick pay, and he had been paid for this amount. The respondent did not accept that the complainant had worked on the 15th and 17th December and that it recorded that he was on sick leave on these dates. It said that the complainant was never the highest earner in the company. |
Findings and Conclusions:
There are five complaints to be adjudicated upon. Two were withdrawn by the complainant at the adjudication as they were selected in error. They are the complaints made pursuant to the European Communities (Organisation of Working Time) (Mobile Staff in Civil Aviation) Regulations 2006 and the Protection of Employees (Fixed-Term Work) Act. For the sake of completeness, it is readily apparent from the evidence that the complainant was neither employed as mobile staff in civil aviation, nor was he employed under a fixed-term contract.
Also, for the sake of completeness, I note that this was an employment that did not end on harmonious terms. Prior to the end of his employment, the complainant raised a grievance regarding an allegation made against him. In the complaint form, the complainant asserts that he was placed in a position where the only solution was to leave the company. The circumstances around the ending of the complainant’s employment were not before this adjudication. There is no claim of constructive dismissal. What is at issue are the three remaining claims regarding monies the complainant asserts are owed to him. The respondent denies these claims.
CA-00004967-001 The first complaint is made pursuant to the Payment of Wages Act. In the complaint form, the complainant states that the respondent did not pay him wages due of €5,504.41 and expenses of €117.69. The amount of €5,504.41 is made up of monies owed for expenses and an overnight allowance, pay due for days the complainant says he worked as well as pay for annual leave (including days carried over or accrued through TOIL) and sick pay. The respondent denies that it is liable for these amounts.
Taking the issues in turn, the respondent denies that the complainant can claim expenses via a complaint made pursuant to the Payments of Wages Act. It states that the complainant cannot recover the €117.69 claimed, but also that the overnight allowance represents an expense.
The relevant part of section 1 of the Payment Wages Act defines “wages” as follows: “wages”, in relation to an employee, means any sums payable to the employee by the employer in connection with his employment, including— (a) any fee, bonus or commission, or any holiday, sick or maternity pay, or any other emolument, referable to his employment, whether payable under his contract of employment or otherwise, and (b) any sum payable to the employee upon the termination by the employer of his contract of employment without his having given to the employee the appropriate prior notice of the termination, being a sum paid in lieu of the giving of such notice: Provided however that the following payments shall not be regarded as wages for the purposes of this definition: any payment in respect of expenses incurred by the employee in carrying out his employment…”
From the evidence, the complainant claimed €117.69 in expenses, made up of mileage for travel on the 15th and 17th December 2015, as well as expenditure for phone credit and broadband. He also claims an allowance of €230 for six days he worked in the UK, where he accrued over 10 billable hours on each day. The terms of the allowance were set out in the respondent’s email of the 27th June 2013. Applying the High Court decision of Cleary & Others v B&QIreland Ltd [2016] IEHC 119 and the UK decision of London Borough of Southwark v O’Brien [1996] I.R.L.R. 420, it is clear that expenses means “relating to” expenditure incurred by the employee. Applying these authorities to the facts of this case, the expenditure associated with mileage, roads toll, phone credit and broadband fall outside the statutory definition of wages. The overnight allowance, however, is not related to expenditure incurred by the employee and the respondent becomes liable for it according to the nature and extent of work carried out by an employee. It is not an expense and, therefore, the allowance falls within the scope of wages as defined by the Payment of Wages Act.
Addressing the substance of the complainant’s claim for the overnight allowance of €230 for six days worked while on site in the UK, I find that this claim is well-founded. I do so for the following reasons. The terms of when this allowance were payable are set out in the email of the 27th June 2013. Those terms apply to six days claimed by the complainant. There is no reference in the email to this work having to take place outside of Ireland or the UK. The respondent referred to custom and practice, but it offered insufficient evidence to displace the entitlement arising from the clear terms of the email of the 27th June 2013. The complainant is, therefore, entitled to recover the amount of €1,380.
The second issue to address is the claim made that the respondent made unlawful deductions of pay for days the complainant says he worked. The complainant says that an unlawful deduction of €719.44 in the December 2015 pay cheque. The complainant states that he was entitled to remuneration for the 15th and 17th December 2015, when he met with employees of the respondent. The respondent states that the deduction of €719.44 was made because of excessive non-billable hours worked in the week of the 5th October 2015 and that the complainant is not entitled to count the 15th and 17th December 2015 as days of work.
Having considered the evidence, I find that the claims made by the complainant regarding the deduction of €719.44 and his entitlement to be paid for the 15th and 17th December are both well-founded. While the respondent may be dissatisfied with the complainant’s work over one particular week, the complainant explained the work he completed in that week, in particular in the context of closing files and the restrictions placed on him by the respondent in contacting clients, i.e. billable work. There is no basis for the deduction and the complainant is awarded €719.44. The complainant gave evidence of carrying out employment-related tasks on the 15th and 17th December 2015 and he is therefore entitled to recover remuneration for these days. I note that he had sought to terminate his employment at an earlier date, but the respondent insisted that he work his three months’ notice. Pay for these two days amounts to €395.
The next issue to address is the complainant’s entitlement to sick pay. Having considered the evidence, I find that the complainant received the sick pay entitlement he was entitled to according to his contract of employment. He had completed three years of service and was therefore entitled to 15 days of sick leave. The respondent provided details of the days he was paid sick pay and they number 15. I find that the complainant is not entitled a higher number of days pro rata, i.e. to take account of months of service prior to the fourth anniversary of the start of his employment.
CA-00004967-002 This complaint is made pursuant to the Organisation of Working Time Act and relates to hours of work, specifically receiving paid holiday/annual leave entitlement. In respect of this complaint, it is fair to say that the evidence presented an unclear picture. There were some 527 pages in the case file, consisting of records, time sheets and correspondence. It is clear that the complainant had a contractual entitlement of 25 days, on top of which he carried over days and also augmented through TOIL. The respondent gave a detailed account of the annual leave taken preceding the 1st December 2015 and by my calculation, this leaves the complainant with five remaining days. This corresponds with the position as stated in respondent’s letter issued at the start of this month. The respondent later sought to include payment for this at the end of the complainant’s employment, and this was returned by the complainant. I, therefore, find that the complainant is entitled to cesser pay equivalent to five days’ pay for annual leave not taken, including the TOIL accrued by the complainant.
CA-00004967-003 This is the complaint made pursuant to the European Communities (Organisation of Working Time) (Mobile Staff in Civil Aviation) Regulations 2006, which was withdrawn by the complainant in the course of the adjudication. For completeness, the complainant does not fall within the scope of the Regulations.
CA-00004967-004 This is a complaint made pursuant to the Organisation of Working Time Act and relates to hours of work, specifically public holiday entitlements. It is clear that the complainant was entitled to payment for the two public holidays in December 2015, i.e. the 25th and 28th December. The respondent remitted these monies to complainant and on the 19th January 2016, the complainant states he returned the cheque. I find that the complainant is entitled to payment for these two public holidays.
CA-00004967-005 This is a complaint of penalisation made pursuant to the Protection of Employees (Fixed-Term Work) Act. The complainant accepted that he was not a fixed-term worker and withdrew the complaint at the adjudication. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make decisions in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
CA-00004967-001 For the reasons outlined above, the complainant is entitled to recover the following amounts pursuant to the Payment of Wages Act: €1,380 for six overnight allowance payments; €719.44 unlawfully deducted from his pay and wages of €427 for work undertaken on the 15th and 17th December 2015. The sum of these amounts is €2,526.44.
CA-00004967-002 For the reason outlined above, I find that the complaint made pursuant to the Organisation of Working Time Act relating to annual leave is well-founded and the respondent shall pay to the complainant five days of annual leave.
CA-00004967-003 I find that the complaint made pursuant to the European Communities (Organisation of Working Time) (Mobile Staff in Civil Aviation) Regulations 2006 is not well-founded as the complainant does not fall within the scope of the Regulations.
CA-00004967-004 For the reason outlined above, I find that the complaint made pursuant to the Organisation of Working Time Act regarding public holiday pay for the 25th and 26th December 2015 is well-founded and I award the complainant two days’ pay.
CA-00004967-005 For the reasons outlined above, I find that the complaint of penalisation made pursuant to the Protection of Employees (Fixed-Term Work) Act is not well-founded. |
Dated: 24.10.2017
Workplace Relations Commission Adjudication Officer: Kevin Baneham
Key Words:
Payment of Wages Act, section 1 Cleary & Others v B&QIreland Ltd [2016] IEHC 119 Organisation of Working Time Act |