Complainant

Respondent

Parties

Noreen  Waters

Adapt Domestic Services Adapt Domestic Services

Representatives

  Self-Represented

Laura Reidy, The HR Suite

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-00038576-001

07/07/2020

The Complainant was employed as an Information Officer .

It was agreed between the parties that the gross weekly wage was €225.50 per week as part of a community employment scheme.

The complaint was received by the Workplace Relations Commission on 17 July 2020.

The Complainant gave evidence after swearing an affirmation.

Sharon Murray of the Respondent and Mr Ciaran Casey of North Munster Citizen Information Services swore an affirmation and gave evidence for the Respondent. Both parties were given an opportunity to cross examine.

As the facts were virtually identical, the case was heard in conjunction with ADJ-00028687.

I requested that the Respondent furnish additional documentation which was duly received on 3 June 2022.

The Complainant gave evidence that she raised an issue with the Respondent when a new contract of employment was issued to her and was told via email on 18 June 2020 that the sum of €225.50, one week’s wages, would be deducted from her wages on the basis of €10 per week for 21 weeks. The Complainant relied on 19 June 2020 stating she did not at the time sign the contract or consent to the deduction.  

The Complainant gave evidence that because she did not start the scheme with the Respondent as her sponsor, she should not have had the money deducted. She stated she was never consulted about the change in sponsor by the Respondent or otherwise. The Complainant referred to the Community Employment (CE) Procedures Manual and in particular

Section 3.2.5

“Wages should normally be paid every week on a current week basis by Electronic Funds Transfer (EFT).”

Section 5.2

“The sponsor will be required to pay the participants (employees) on a weekly basis (current week).”

Section 5.6.3

“Participant wage grant funding may not be used for any other purpose. Any overpayments should be deducted from the next AWS.”

The Complainant stated that given her limited financial resources together with the unknowns of the Covid19 pandemic she refused to consent to the deduction as it was a significant deduction of her weekly wage. She stated that while she disagreed with the contract, she felt she had no other choice but to sign it given the difficulty she would face is seeking alternative employment during the Covid19 pandemic.

Mr Ciaran Casey of North Munster Citizen Information Services gave evidence on oath as to the background of sponsorship scheme.

The Respondent outlined that the sum of €10 per week for a period 10 week was withheld from the Complainant from 18 June 2020 but was returned to her in her last payment in August 2020.

There were a series of three fixed term contracts of employment provided to the Complainant during the period from 6 April 2020 to 28 August 2020 by the Respondent. These contracts were opened by the Respondent. The contract for the period 6 April 2020 to 12 June 2020 which was signed by the Respondent on 31 March 2020 and by the Complainant on 28 April 2020 states at 6.4:

“However, in the context of the current Covid-19 situation you will be paid on a current week basis until 12/06/2020. This will revert to a one week in arrears basis should your employment continue after 12/06/2020. The change to a week in arrears will take place on a graduated basis and will be discussed with you in advance.”

In the subsequent contract covering the period of 15 June 2020 to 31 July 2020 at 6.3 it states:

“Your salary will normally be paid weekly, one week in arrears by credit transfer to your nominated account, subject to appropriate agreed deductions, including statutory PAYE and PRSI.”

And at 6.4 it states:

“As per your last contract , the change to a week in arrears will take place on a graduated basis from the week of 15 June 2020”. This contract was signed by the Respondent on 9 June 2020, and by the Complainant on 14 July 2020.

Sharon Murray gave evidence that she spoke on the phone with the Complainant regarding this matter. Emails between the parties, dated 18 and 19 June 2020, were presented in relation to the  salary deduction.

Section 5 (1) of the Payment of Wages Act 1991 provides:

“5.—(1) An employer shall not make a deduction from the wages of an employee (or receive any payment from an employee) unless—

(a) the deduction (or payment) is required or authorised to be made by virtue of any statute or any instrument made under statute,

(b) the deduction (or payment) is required or authorised to be made by virtue of a term of the employee's contract of employment included in the contract before, and in force at the time of, the deduction or payment, or

(c) in the case of a deduction, the employee has given his prior consent in writing to it.”

The contract of April 2020 at 6.4 put the Complainant on notice that a deduction for the one week’s wages in arrears will be made if a further contract is furnished to the Complainant. This contract was signed by both parties, albeit reluctantly by the Complainant. In regard the wording of clause 6.4, it there is merit in drafting employment contracts and associated policies in plain English to allow for a clearer understanding of the process by all parties.

The Complainant was furnished with another contract of employment for the fixed period from 15 June 2020 to 31 July 2020 and the deduction was made from 15 June 2020. It is noted that the Complainant raised issues about this deduction which amounted to €100 and not the full weekly wage around this time and it was agreed that a weekly deduction of €10 for a period of 10 weeks would be made instead of one deduction of €100 as a compromise by the Respondent. It is of note that the sum of €100 was returned to the Complainant. 

Consequently, as provided for under Section 5 (1) (b) of the Payment of Wages Act 1991 there was a contractual basis for the Respondent to deduct one week in arrears sum of money of €100 from the Complainant’s wages.

It is welcomed that the Respondent has learnt from the highlighting of this concern by the Complainant and confirmed that this practice is no longer in place given the nature of the position and level associated wage.

I find the complaint was not well founded.

Payment of wages – deductions – not well founded