ADJUDICATION OFFICER DECISION.
Adjudication Reference: ADJ-00027669
Parties:
| Complainant | Respondent |
Anonymised Parties | A Sales Director | An accommodation company |
Representatives | Self | Company Management |
Complaint(s):
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-00035429-001 | 25/03/2020 |
Date of Adjudication Hearing: 22/01/2021
Workplace Relations Commission Adjudication Officer: Jim Dolan
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 following the referral of the complaint to me by the Director General, I inquired into the complaint and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaint.
Background:
The Complainant was employed by the Respondent as a Sales Director from 4th March 2019 to 23rd April 2020. This complaint submitted under section 7 of the Payment of Wages Act, 1991 was received by the Workplace Relations Commission on 25th March 2020. |
Summary of Complainant’s Case:
The Complainant’s contract of employment includes the following: Remuneration: Salary - €75,000.00 Bonus: 15% bonus paid semi-annually – Annual bonus paid on group performance at the discretion of the board. €4,000 clothing allowance. The parameters for both bonus payments will be set and agreed on an annual basis in advance. The Complainant tried on several occasions to have her clothing allowance paid |
Summary of Respondent’s Case:
The Respondent had offered to pay clothing expenses to the Complainant subject to the Complainant submitting vouched receipts for all work-related clothing expenses. The figure of €4,000 was the maximum allowed per year. The Respondent makes such payments as an expense item. |
Findings and Conclusions:
It was clearly established at the hearing of the complaint that the sum in question i.e. €4,000 was to be paid as an expense against the submission of receipts from the Complainant. Any sum paid to the Complainant would be paid as an expense and not be subject to tax or PRSI. Section 1 of the Payment of Wages Act, 1991 reads 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 amount of 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: (i) Any payment in respect of expenses incurred by the employee in carrying out his employment The monies due to the Complainant are paid as expenses and as such do not come within the definition of wages as outlined in the Act. This complaint, as presented under the Payment of Wages Act, 1991 is not well found and therefore fails. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaint in accordance with the relevant redress provisions under Schedule 6 of that Act.
This complaint, as presented under the Payment of Wages Act, 1991 is not well found and therefore fails. |
Dated: 22nd February 2021
Workplace Relations Commission Adjudication Officer: Jim Dolan
Key Words:
Payment of Wages Act, 1991. |