Complainant

Respondent

Anonymised Parties

A Project Manager/Web Developer

A Website Design Company

Representatives

The Complainant attended the Hearing in person and was not represented

The Respondent did not attend the Hearing or was not represented

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-00022562-001

10/10/2018

The Complainant was employed by the Respondent as a Project Manager/Web Developer from 1 June, 2017 until 15 November, 2018 when his employment was terminated. The Complainant claims that the Respondent made unlawful deductions from his wages in relation to outstanding wages and holiday pay contrary to Section 5 of the Payment of Wages Act 1991 during his period of employment.

The Respondent does not dispute the claims under the Payment of Wages Act, 1991 and accepts that the amounts claimed by the Complainant in respect of unpaid wages and holiday pay were owed to him by the company on the termination of his employment.

The Complainant worked an average of 39 hours per week and was paid a gross monthly salary of €2,500.00 (€2,106.49 net). The Complainant contends that he experienced difficulties in relation to the payment of his wages throughout the duration of his period of his employment with the Respondent. The Complainant’s wages were due to be paid on a monthly basis in accordance with the terms of his contract of employment. However, there were irregularities in relation to the payment of the Complainant’s wages and some months he did not receive the full amount of wages due and other months he did not receive any wages.

The Complainant contends that the Respondent was experiencing financial difficulties and he was informed by management during his period of employment that a payment plan was being devised to ensure that all outstanding wages would be paid in full. The Complainant stated that the Respondent reneged on its agreement to pay the outstanding wages and that he was owed a total of €7,911.37 when his employment was terminated.

The Complainant also claims that he was owed an amount of €700.72 in respect of unpaid holiday pay on the termination of his employment.

The Complainant claims that the Respondent’s failure to pay his outstanding wages and holiday pay constitute unlawful deductions from his wages contrary to Section 5 of the Payment of Wages Act 1991.

The Respondent’s Managing Director confirmed in an e-mail to the WRC on 14 May, 2019 that the company was not disputing that the outstanding monies claimed by the Complainant were owed to him in respect of his period of employment.

The Respondent’s Managing Director stated in this e-mail that the company was endeavouring to put a payment plan in place to pay the outstanding amounts to the Complainant. The Respondent’s Managing Director also confirmed that he would not be in attendance at the Hearing on 15 May, 2019.

Firstly, I note that the WRC received confirmation from the Respondent on 14 May, 2019 that it was not in dispute that the amounts claimed by the Complainant in respect of outstanding wages and holiday pay were owed to him in respect of his period of employment. Secondly, I note that the Respondent confirmed that it would not be in attendance at the hearing on 15 May, 2019. I further note that the Respondent did not seek a postponement of the hearing that was scheduled on this date. The Complainant was in attendance at the hearing on this date and in the circumstances, I decided to proceed with the hearing and allow the Complainant to adduce evidence in relation to his complaint.

The issue for decision in relation to the Complainant’s claim is whether the Respondent made unlawful deductions from his wages contrary to Section 5 of the Payment of Wages Act 1991 in relation to outstanding wages and holiday pay during his period of employment. In considering this issue, I must first decide whether the claimed unlawful deductions were in fact “properly payable” to the Complainant within the meaning of Section 5 of the Act.

In relation to the claim in respect of unpaid wages, I find that the Complainant was a very credible witness and I accept his evidence, which was corroborated by relevant supporting documentation, that he was owed an amount of €7,911.37 in unpaid wages during his period of employment. I am satisfied that this amount was properly payable to the Complainant at the material time of the referral of the instant complaint to the WRC.

In relation to the claim in respect of outstanding holiday pay, the Complainant adduced evidence that he had accrued an entitlement to 7 days annual leave on the termination of his employment with the Respondent which the Respondent failed to pay. Therefore, I find that the Complainant had an outstanding entitlement to 7 days annual leave which were properly payable to him following the termination of his employment (being the equivalent of €680.32 i.e. €12.46 per hour x 7.8 hours per day x 7 days).

Having regard to the foregoing and based on the uncontested evidence of the Complainant, I find that the Respondent made unlawful deductions from the Complainant’s wages contrary to Section 5 of the Act in relation to unpaid wages and holiday pay. Accordingly, I find that the complaint is well founded.

I find that the Respondent made unlawful deductions from the Complainant’s wages contrary to Section 5 of the Payment of Wages Act 1991, and accordingly, that the claim is well founded. I hereby direct that the Respondent pay the Complainant the following amounts in compensation for the unlawful deductions:

·        €7,911.37 being the net amount of the unlawful deduction in respect of wages due and not paid in respect of the Complainant’s period of employment, and

·        €680.32 being the net amount of the unlawful deduction in respect of outstanding holiday pay and not paid on termination of the Complainant’s employment.

Payment of Wages Act 1991 – Section 5 – Unlawful Deductions – Holiday Pay – Unpaid Wages