Complainant

Respondent

Anonymised Parties

A Saddle Maker

A Saddle Making Company

Act

Complaint/Dispute Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under Section 39 of the Redundancy Payments Act, 1967

CA-00027546-001

05/04/2019

Complaint seeking adjudication by the Workplace Relations Commission under Section 11 of the Minimum Notice & Terms of Employment Act, 1973

CA-00027546-002

05/04/2019

This is a complaint about the fact that the complainant did not receive the full amount of redundancy payment to which she was entitled and she received no proper notice of the fact that she was to be made redundant.

The complainant joined the respondent’s company as a qualified saddler in January 2000.  She was informed in October 2018 that the company was closing and that she would be let go.  This notice was informal and not in writing and, from the date of this discussion, she had no idea when her employment would be terminated.

In early November 2018, more than once, the complainant said that she asked one of the owners when the company was closing, but he gave her no confirmation of precisely when they were to close.  She said that she only knew in her last week of employment, that the business would actually close on November 30^th.

Leading up to the termination of her employment, the complainant said that there were vague discussions between her and the owners about how much she would get in a redundancy payment.  She consulted the redundancy calculator on the website of the Department of Social Protection and she said that, based on her weekly wages of €700 and her service of 18.8 years, she was entitled to 38.7 weeks’ pay, which is equivalent to €23,256.

On December 3^rd 2018, the complainant received a payment of €10,000 to her bank account, and two weeks later, she received a second transfer of €10,000.  She has therefore, been left short of €3,256. 

The complainant made several attempts to get her outstanding redundancy payment, but without success.  On March 19^th 2019, she presented a completed RP 77 form to her former employer in person.  She got no response to this notice and on April 5^th, she submitted this complaint to the WRC.

The respondent did not attend the hearing.

Section 19(1) of the Redundancy Payments Act 1967 – 2014 provides that an employee whose employment ceases because of redundancy, is entitled to a redundancy payment:

Upon the dismissal by reason of redundancy of an employee who is entitled under this Part to redundancy payment … his employer shall pay to him an amount which is referred to in this Act as the lump sum.

From the evidence submitted by the complainant regarding the start and finish dates of her employment, and her weekly wages, it is apparent that she is entitled to a lump sum of €23,256.  In accordance with the provisions of the Redundancy Payments Act 1967 – 2014, she was legally entitled to be paid this amount on November 30^th 2018, when her employment terminated.

The complainant is entitled to a statutory redundancy payment of €23,256.  She received €20,000.  I decide therefore that her former employer is to pay her €3,256 in respect of the outstanding amount due.

Although she was told in October 2018 that the business where she worked was closing down, the complainant got no notice of when she would be made redundant and she only found out for certain in the last week of her employment, that she was finishing on November 30^th. 

The respondent did not attend the hearing.

Section 17 of the Redundancy Payments Act sets out the entitlement of an employee to notice:

(1) An employer who proposes to dismiss by reason of redundancy an employee who has not less than 104 weeks’ service with that employer shall, not later than two weeks before the date of dismissal, give to the employee notice in writing of the proposed dismissal.

(2) The Minister may make regulations for giving effect to this section and, without prejudice to the generality of the foregoing, regulations under this section may relate to all or any of the following matters—

(a) the particulars to be stated in the notice,

(b) the method of service of the notice. 

(2A) A notice under this section, a redundancy certificate and a claim for a rebate under section 36 may be combined in one document.

(3) An employer who fails to comply with this section or who furnishes false information in a notice under this section shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding €5,000.

The complainant in this case had 18 years of service with her former employer.  Section 4(1) of the Minimum Notice and Terms of Employment Act 1973 provides that an employee with service of more than 15 years is entitled to eight weeks’ notice.

Prior to the termination of her employment, the complainant received no written notice in accordance with the provisions of the Redundancy Payments Act 1967 -2014 and no adequate notice in accordance with the Minimum Notice and Terms of Employment Act 1973 - 2014.  By failing to give the complainant adequate written notice of the termination of her employment due to redundancy, the respondent is in breach of both statutes.

I uphold this complaint and I decide that the respondent is to pay the complainant €5,600 in respect of her entitlement to eight weeks’ notice of the termination of her employment on November 30^th 2018.

Redundancy lump sum, notice of redundancy