FULL RECOMMENDATION
REDUNDANCY PAYMENTS ACTS, 1967 TO 2014 PARTIES : CH MARINE LTD (REPRESENTED BY MS. HANNAH CAHILL BL INSTRUCTED BY ANNE TAIT & CO SOLICITORS) - AND - MR CIARAN O'CONNOR DIVISION : Chairman: Mr Haugh Employer Member: Mr Marie Worker Member: Ms Tanham |
1. Appeal Of Adjudication Officer Decision No. ADJ-00015499.
BACKGROUND:
2. The Employer appealed the Decision of the Adjudication Officer to the Labour Court in accordance with the Redundancy Payments Act 1967. A Labour Court hearing took place on 27 June, 2019. The following is the Determination of the Court:-
DETERMINATION:
This is an appeal on behalf of CH Marine Limited (‘the Respondent’) from a decision of an Adjudication Officer (ADJ-00015499/CA-00020013-001, dated 20 February 2019) under the Redundancy payments Act 1967 (‘the Act’). The Notice of Appeal was received by the Court on 27 March 2019. The Court heard the appeal in Cork on 27 June 2017. Mr Ciaran O’Connor (‘the Complainant’) gave evidence on his own behalf. Mr Nicholas Bendon gave evidence on behalf of the Respondent.
The Complainant was employed by Kayaks and Paddles Plymouth Limited T/A Bantry Bay Canoes as a manger of its Bandon facility between 1 February 2008 and 20 January 2017. On the latter date, the Complainant’s employment transferred to that of the Respondent by operation of the EC (Protection of Employees on Transfer of Undertakings) Regulations 2003. The Respondent has premises in Cork, Bandon and Skibbereen.
The Complainant was certified medically unfit for work from May 2017 until 22 May 2018. During the Complainant’s certified sick leave, the Respondent encountered difficulties in managing the Bandon facility. During the busy season in 2017, the business in Bandon was carried on with two locally based part-time staff who were supported by a manager based in Cork. This proved to be inefficient from the Respondent’s perspective. Therefore, the sales function – previously carried on in Bandon – was moved to Cork with effect from October 2017. Bandon appears to have been little more than a storage facility for boats and associated equipment from that time on. The Complainant’s work email addresses were monitored from Cork. The Complainant no longer had access to them or to the business’s Facebook page.
The Complainant notified the Respondent by email dated 21 May 2018 that he had been medically certified as fit to return to work. He attached a medical certificate to that effect along with his email. The Complainant attended the Bandon premises the following day, 22 May 2018, but was unable to gain entry as the locks had been changed on the doors during his absence. There was also a sign on the door stating that Bantry Bay Canoes had moved location to CH Marine in Cork with effect from 7 October 2017.
The Complainant unsuccessfully attempted to contact Mr Bendon by telephoning the Cork office. Later that day, the Complainant emailed Mr Bendon seeking clarification regarding his position with the Respondent. At 5.42 am on 23 May 2018, Mr Bendon sent an email which included the following text to the Complainant:
- “Your job awaits you in Cork. As you are very much aware we were forced to close Bandon, so no idea why you waited outside for two hours knowing this, or why you did not call me.”
- “I appreciate your offer of a position in your Cork branch. However, I do not accept your offer as it would (sic) an unreasonable change in employment circumstances.
As you have stated this morning the business in Bandon has been closed. I can only assume that you are making my position as the manager of Bantry Bay Canoes in Bandon redundant?”
- “Thank you for your email and clarification on my position.
The first time you have made me aware of this change in my contract of employment was 5.42 am on the morning of 23rdMay. Up to this point I was relying on your last communication on the subject with which you categorically stated through your solicitors (sic) letters dated October 24thand 25ththat my position in the Bandon store was open to my return and the Bandon store was not closed.
You have furnished me no other notification of this move being permanent or that I was expected to return to a created position in Cork since this date.
This is an unreasonable change in the terms of my employment without prior notice or discussion, let alone the fact that it will double my commute time each day.
As you have categorically stated that my position has not been made redundant, you have left me no choice but to give notice of termination of my contract of employment with immediate effect.”
Submissions
The Respondent submits that there was no act on its part which operated to terminate the Complainant’s employment and that it, therefore, follows that he is not entitled to succeed in his claim under the Act. It further submits that the Complainant resigned his employment in circumstances where his position as manager of the Bandon store still existed. Ms Cahill BL opened the determination of the Employment Appeals Tribunal inCollins v Excel Property Services Limited(31 December 1998) to the Court in support of the Respondent’s defence to the within claim.
The Complainant accepts he resigned his employment but did so in circumstances where it had been communicated unequivocally to him by Mr Bendon that the only position open to him on his return from long-term sick leave was to be based in Cork. Had he accepted that position, his commuting distance to and from work would have doubled. The offer of employment in Cork was, in the Complainant’s submission, not a reasonable alternative to the position he had held for over ten years in Bandon.
The Law
Section 2 of the Act contains the following definition of ‘date of dismissal’:
- “’date of dismissal’, in relation to an employee, means—
- (a) where his contract of employment is terminated by notice given by his employer, the date on which that notice expires,
(b) where his contract of employment is terminated without notice, whether by the employer or by the employee, the date on which the termination takes effect, and
(c) where he is employed under a contract for a fixed term, and that term expires without the contract being renewed, the date on which that term expires,
- (a) where his contract of employment is terminated by notice given by his employer, the date on which that notice expires,
Section 9(1)(c) of the Act provides:
- “9. Dismissal by employer
(1) For the purposes of this Part an employee shall, subject to this Part, be taken to be dismissed by his employer if but only if–- (a) … or
(b) .. or
(c) the employee terminates the contract under which he is employed by the employer in circumstances (not falling within subsection (5)) such that he is entitled so to terminate it by reason of the employer's conduct.”
- (a) … or
The clear import of the provisions cited above is that a dismissal for the purposes of the Act can be effected constructively i.e. by an employee himself/herself.
The Court finds that the determination inCollins v Excel Property Services Limitedhas no application to the within appeal and is wholly distinguishable on the facts. Ms Collins was dissatisfied with the equipment provided to her by her new employer following a transfer of undertaking and therefore decided to resign her employment with the transferee. Her place of employment, however, never changed.
Determination
The Complainant in this case constructively dismissed himself (within the meaning of section 9(1)(c) of the Act) in circumstances where he was told in an email from Mr Bendon – following a period of extended sick leave - without any prior consultation that his job ‘awaited’ him in Cork rather than in Bandon. The Complainant had been employed in Bandon for over ten years at this point in time. The Court finds that the Complainant’s conduct was a reasonable response to the employer’s unilateral decision to relocate his job from Bandon to Cork. There was no job available for the Complainant in his established place of work. The alternative offered to him would have necessitated an unreasonable additional daily commute for him. In all the circumstances, the Court, therefore, finds that the Complainant is entitled to a statutory redundancy payment based on the following criteria:
Commencement: 1 February 2008
Date of dismissal: 24 May 2018
Gross weekly wage: €596.16
The Court so determines.
Signed on behalf of the Labour Court
Alan Haugh
TH______________________
8 July 2019Deputy Chairman
NOTE
Enquiries concerning this Determination should be addressed to Therese Hickey, Court Secretary.