Complainant

Respondent

Anonymised Parties

Engineer

Owner

Representatives

  self

 self

Act

Complaint Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991

CA-00033678-001

09/01/2020

The complainant commenced employment in August 2019 to be paid monthly and after 2 months the employment ceased without payment. The employer has made two payments since. The delay in paying the remaining amount owed, directly relates to the pandemic and the adverse effect on cashflow. The employee’s monthly gross salary was €2916.66. Two payments amounting to €3671 have been made by the employer. The nett outstanding amount being claimed is €1225.72.

The complainant states that €1225.72 nett wages are owed to him.

The respondent does not dispute the outstanding amount is owed and has made best endeavours to pay the wages as evidenced by two payments already made amounting to €3671. However, COVID has had a very significant negative cash flow impact on his capacity to meet the full amount.

On the facts the respondent has made two payments and the Pandemic has adversely affected his business. He has made a very substantial payment to the complainant.

The nett amount owed and the method of calculation was sent to the respondent on the 3rd February 2021 and has not been disputed:

Gross pay: €35000 p/a. Divided by 12 gives a monthly salary of €2916.66.

Applying deductions of:

PAYE @ 20% less tax credit of 275.00 = 2916.66*.20 - 275 = 308.33

USC: 1001 @ .5% + 1915.66 @ 2% = 5.00 + 38.31 = 43.31

PRSI @ 4% = 2916.66*.04 = 116.66

Total deductions: 308.33+43.31+116.66 = €468.30 per month.

Net monthly salary: 2916.66-468.30 = €2448.36

Net wages due for August and September = 2448.36*2 = €4896.72

Payments received to date: €1910 + €1761 = €3671

Total net money owed = €4896.72 - €3671 = €1225.72

Section 6 of the Act states:

6.  (1) A decision of an adjudication officer under section 41 of the Workplace Relations Act 2015, in relation to a complaint of a contravention of section 5 as respects a deduction made by an employer from the wages of an employee or the receipt from an employee by an employer of a payment, that the complaint is, in whole or in part, well founded as respects the deduction or payment shall include a direction to the employer to pay to the employee compensation of such amount (if any) as he considers reasonable in the circumstances not exceeding —

( a ) the net amount of the wages (after the making of any lawful deduction therefrom) that —

The complaint in whole is well founded. While I note the non- payment of wages arose in late 2019, and the persistent demands that had to be made for payment, the employer has been honourable regarding part payment of outstanding wages of €3671. Allowing for the extreme current pressures of COVID on his business, in these circumstances and allowing for the fact that most has been paid, it is reasonable that he is afforded time to pay the balance,  I order that the balance of €1225.72 be paid to the complainant no later than 30th June 2021.

Pursuant to section 6 of the Act I determine that the complaint is well founded.

The complaint in whole is well founded. The employer has been honourable regarding part payment of outstanding wages of €3671. Allowing for the extreme pressures of COVID on his business, in these circumstances and allowing for the fact that most has been paid, it is reasonable that he is afforded time to pay the balance,  I order that the balance of €1225.72 be paid no later than 30th  June 2021.

Payment of Wages