Complainant

Respondent

Parties

Thomas Doyle

XS Direct Insurance Brokers Limited (in receivership)

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-00047180-001

15/11/2021

The complainant outlined that the salary reduction was forced upon him and the staff. He told the respondent that he did not accept the reduced pay, but the respondent did not give him a choice. The complainant outlined that the respondent reduced his salary by €16,616.34 and these monies were properly payable to him. The complainant outlined that he spoke to the respondent director about this every few months and was assured that the full wages would be paid to him. It was only later that the complainant was told he would not be paid his wages.

The complainant outlined that he was entitled to an annual bonus provided he reached two sets of targets (income generated and the loss ratio). He stated that he had earned bonuses for 2019 and 2020 which were not paid to him. The bonus would fall due once the loss ratio information came in, which was after the end of the year in question. The respondent told him that he would be paid these bonus payments, but they were not paid. The complainant outlined that he was owed two bonus, each of €22,155.

The complainant outlined that he felt robbed by the company as his earnings for the respondent increased at a time his pay and bonuses were not paid in full. He outlined that his employment ended in the most unfair dismissal.

There was no appearance by the respondent, nor the receivers and they did not enter submissions to oppose the claim.

This is a complaint pursuant to the Payment of Wages Act. While the complainant touched on the circumstances around the ending of his employment, this matter was not before this adjudication, and I make no findings in respect of this aspect of the employment relationship.

The Payment of Wages Act regulates deductions to employee’s wages and prohibits unlawful deductions. Where there is an unlawful deduction and a contravention of the Act, it allows the employee to pursue a claim to the Workplace Relations Commission.

Here, it is not disputed that the respondent imposed a pay cut and did not pay bonuses to the complainant without the consent of the complainant or on any other ground that could permit this non-payment. The respondent outlined to the complainant and the other staff that it would review the pay cut and non-payment of the bonuses as these were temporary measures related to the pandemic. The monies, however, were never paid.

I find that the wages and bonuses were properly payable to the complainant. I find that the contravention of the Payment of Wages Act occurred when the respondent undertook to pay these monies in 2021 but did not in fact pay them. This encompasses the €16,616.34 due in wages and the bonuses for 2019 and 2020, i.e. two amounts of €22,155. The sum of the monies owed by the respondent to the complainant is €60,926.34.

CA-00047180-001

I decide that the complaint pursuant to the Payment of Wages Act is well-founded and the respondent shall pay to the complainant compensation of €60,926.34.

Payment of Wages Act / compensation