ADJUDICATION OFFICER DECISION.
Adjudication Reference:
Parties:
| Complainant | Respondent |
Anonymised Parties | A truck driver | A transport services company |
Representatives | | Manager /Owner |
Complaint(s):
Act | Complaint/Dispute Reference No. | Date of Receipt |
CA-00027349-001 | ||
CA-00027349-002 | ||
CA-00027349-003 | ||
CA-00027349-004 |
Date of Adjudication Hearing:
Workplace Relations Commission Adjudication Officer:
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 and/or Section 39 of the Redundancy Payments Acts 1967 - 2014following the referral of the complaint(s) to me by the Director General, I inquired into the complaint(s) and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaint(s).
Background:
The Complainant was employed by the Respondent company as a driver, his employment commenced on 26/08/2011 and ended on 15/02/2019. On 15/02/2019 the Complainant was earning €782.82 per 56-hour week. The employment ended due to the company closure. This complaint was received by the Workplace Relations Commission on 28th March 2019. The file (ADJ – 00020748) contains four separate complaints, these are as follows: CA – 00027349 – 003 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. CA – 00227349 – 004 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. |
Summary of Complainant’s Case:
On Friday 15th February 2019 the Complainant was simply advised that there was no more work and that his position was being made redundant. The Respondent was entitled to 4 weeks’ notice or payment in lieu of notice for his service with the company. The Complainant is due pro-rata annual leave entitlement for the period 1st January 2019 to 15th February 2019. CA – 00027349 – 003 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. To date, the Complainant has not received any financial proof (other than a letter from his former employer) to prove his former employer’s inability to pay statutory redundancy. CA – 00227349 – 004 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. The Complainant received a letter dated 20th February 2019 confirming his employment terminated on 15th February 2019. The Respondent provided him with an incomplete Notification Redundancy form which the Complainant duly forwarded to the Department of Employment & Social Protection to seek payment from the Social Insurance Fund. The Complainant received a letter from the Department of Employment & Social Protection stating that the process to seek redundancy from the Department of Employment & Social Protection has not been fully completed by his former employer. From the Redundancy calculator the Complainant is due approximately €9,576.00 for his service for the period 26th August 2011 to 15th February 2019 working on the assumption that his gross pay is €600 per week (maximum statutory figure). Conclusion. The Complainant wishes to seek confirmation from the WRC of his redundancy status and payments due under the relevant legislation. The Complainant was made redundant on 15th February 2019 without any notice nor payment in lieu of notice. The Complainant is due 4 weeks’ pay in lieu of notice for his 7 years’ service. The Complainant has 7.48 number of years’ service, equivalent to 15.96 weeks pay due to him under redundancy, at the maximum weekly statutory redundancy rate and is therefore due approximately €9,576.00. The Complainant is due pro-rata annual leave entitlement for the 6-week period 1st January 2019 to the 15th February 2019.
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Summary of Respondent’s Case:
The Respondent, to his credit, attended the hearing. The Respondent had previously sent a letter dated 10th April 2019 to the Workplace Relations Commission, this letter included the following: “Unfortunately, on February 15th, 2019 at 12.00hrs after many weeks of discussions my bank had refused an extension to my overdraft facility and I was forced to cease trading with immediate effect. The reason for requesting an overdraft was due to customer credit terms. I had worked extremely hard over the past 12 months to keep the business operating and all 11 employees in full time positions to the extent I had put all of my own personal savings into the company which now I have completely lost. All employees were notified individually by myself on Friday 15th February 2019 from 1500 hrs that the business was forced to cease. Through no fault of my own I was in no financial state to continue the business for another week to give each employee their minimum notice. The company has applied for the state redundancy and insolvency payment scheme for each employee as the company has no funds or assets available”. At the hearing the Respondent went through the efforts he had made to keep the company afloat.
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Findings and Conclusions:
The representative for the Complainant has accurately outlined the payments due to the Complainant. The Complainant is due 4 weeks’ pay in-lieu of his notice. Based on P.60 figures from 2018 I calculate this to be €2,572.50 gross. This payment represents wages and the appropriate legal deductions should be made. Holiday entitlement accrued between 1st January 2019 and 15th February 2019 should now be made in the form of payment. Without exact hours worked I am unable to be more specific than this. CA – 00027349 – 003 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. To date, the Complainant has not received any financial proof (other than a letter from his former employer) to prove his former employer’s inability to pay statutory redundancy. I’m not exactly sure what the Complainant is seeking or whether it can be addressed by the Workplace Relations Commission. In relation to this complaint I set it aside. CA – 00227349 – 004 – Complaint referred under section 39 of the Redundancy Payments Act, 1967. The Complainant is due a statutory redundancy payment of approximately €9,576.00, this sum should now be paid to him. At the hearing I noted that the Respondent said he would be as co-operative as possible, that most matters are now in the hands of his accountants and he would request that they co-operate with the Complainant and his representative. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaint(s) in accordance with the relevant redress provisions under Schedule 6 of that Act.
Section 39 of the Redundancy Payments Acts 1967 – 2012 requires that I make a decision in relation to the complaint in accordance with the relevant redress provisions under that Act.
As outlined above. |
Dated: 14th May 2019
Workplace Relations Commission Adjudication Officer:
Key Words:
Redundancy. Employers inability to pay statutory redundancy. |