ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00037139
Parties:
| Complainant | Respondent |
Parties | Ken McSweeney | Flutter Entertainment Plc |
Representatives | Mandate Trade Union | IBEC |
Complaint:
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-00040021-001 | 23/09/2020 |
Date of Adjudication Hearing: 11/05/2022
Workplace Relations Commission Adjudication Officer: Catherine Byrne
Procedure:
In accordance with section 41 of the Workplace Relations Act 2015, this complaint was assigned to me by the Director General. I conducted a remote hearing on May 11th 2022, in accordance with the Civil Law and Criminal Law (Miscellaneous Provisions) Act 2020 and Statutory Instrument 359/2020 which designates the Workplace Relations Commission as a body empowered to hold remote hearings. At the hearing, I gave the parties an opportunity to be heard and to present evidence relevant to the complaint.
Mr McSweeney was represented by Mr Jim Fuery and Mr Ken Reilly of the Mandate Trade Union. Flutter Entertainment Plc was represented by Ms Susan O’Riordan of IBEC. Two employee relations managers, Ms Sarah Jane Newstead and Ms Kim O’Callaghan attended for the employer, with the head of operations for the Irish retail business, Mr Pat Hand.
While the parties are named in this decision, from here on, I will refer to Mr McSweeney as “the complainant” and to Flutter Entertainment as “the respondent.”
Background:
The respondent operates around 250 betting stores in Ireland. The complainant joined the company in February 2008 and he manages the respondent’s store, the Breffni, on the Navan Road. His hourly rate of pay is €16.53. The complainant’s contract of employment provides that he is required to work 40 hours a week, but, until the stores were closed due to the Covid-19 restrictions, he generally worked 48 hours, with eight hours being paid at the overtime rate of time plus a half. This is a complaint about the loss of overtime earnings when restrictions were eased during the Covid-19 pandemic. |
Summary of Complainant’s Case:
Along with many retail outlets, at the commencement of the Covid-19 lockdown on March 16th 2020, betting shops were closed. The complainant was off work, but he was paid for 40 hours each week that he was off. The restrictions were partially lifted in June 2020 and the complainant returned to work. However, he was rostered for 40 hours a week, and not for his usual 48 hours. On June 8th 2020, Mandate’s Divisional Organiser, Robert McNamara wrote to Ms Marion Ryan, the director of the respondent’s Irish retail business. He informed Ms Ryan that the union had been notified that its members were returning to work on less hours than they usually work. Mr McNamara said that, while the additional hours normally worked are generally referred to as overtime, the pay for these hours was an integral part of the employees’ core earnings and that the hours formed part of their implied and / or expressed contracts of employment. He said that any co-operation by employees, where they work shorter hours “should not be regarded as permanent, nor should it be inferred or implied that our members have in any way accented or acquiesced to any changes to their terms or employment whether they be expressed or otherwise.” Ms Ryan did not reply to Mr McNamara’s letter and there was no change to the decision to roster the complainant for 40 hours, instead of his usual 48 hours. Legal Argument The Payment of Wages Act 1991 establishes the right to protection against unlawful deductions from wages and section 5(1) outlines the requirement for an employee to be notified in advance by the employer before a deduction is made from wages. In its submission, Mandate referred to the case at the UK Employment Tribunal of Potter v Hunt Contracts Limited[1], where the Tribunal, considering the similarly worded provision of the UK Wages Act 1986, found that a document must be issued to an employee which clearly states the deduction being made from their wages. It must also make clear that, before the deduction is made, the employee has agreed by giving their consent in advance. In the case of the complainant, the respondent did not seek, and neither did they obtain prior written consent before his hours were reduced, giving rise to a deduction from wages. The reduction in the complainant’s wages was not a requirement under statute, nor was there any contractual authority providing for the reduction; consequently, Mandate’s position is that the deduction was unlawful. The union contemplates that the respondent may attempt to rely on the defence that the reduction in hours which gave rise to a deduction in earnings is overtime hours, and consequently, not covered by the Payment of Wages Act. They referred to the decision of the Employment Appeals Tribunal in Elizabeth Doyle v Dunnes Stores[2]. Ms Doyle was deprived of 2.5 hours of overtime because of a change in the opening hours of the branch where she worked. The Tribunal found that the 2.5 hours formed part of Ms Doyle’s contract of employment and that the reduction in her wages was a breach of the Payment of Wages Act. An appeal by Dunnes Stores to the High Court did not succeed.[3] In the case at the Employment Appeals Tribunal of Sullivan v the Department of Education[4], the Tribunal decided that the word “payable” meant “properly payable” and that the employer had failed to pay the employee’s wages which, it concluded, were properly payable to her. The union argues that it is necessary to examine the separate issues of “reduction” and “deduction” which were considered by the Labour Court in its decision on Inisbofin Community Services Programme Company Limited v Brenda Burke[5]. In that case, the respondent argued that a reduction in an employee’s wages is not encompassed by the intention of the legislation. That argument was based on the decision of Mr Justice Edwards in McKenzie v the Minister for Finance[6] which was later considered by the President of the High Court, Mr Justice Kearns in Earagail Eisc Teoranta v Doherty[7]. Kearns P concluded that the reduction in the employee’s earnings may have constituted a deduction in breach of the 1991 Act. Returning to the Labour Court findings in Inisbofin, it was held that, where a deficiency or non-payment of the total amount of wages properly payable to an employee is not paid, this is to be regarded as a deduction. The Court concluded that the reduction in Ms Burke’s pay by €1.00 per hour was to be treated as an unauthorised deduction and a breach of the Payment of Wages Act. Conclusion Concluding his submission, on behalf of Mr McSweeney, Mr Fuery said that he has always worked for 48 hours a week and this is now his contractual entitlement. After the hearing, on June 1st 2022, Mr Reilly sent me a copy of three payslips. The first of these is dated May 9th 2019, a week when the complainant was on paid suspension. For that week, he was paid for €650 for 40 hours, based on an hourly rate at the time of €16.25. On July 18th 2019, the complainant received €1,852.50 with the explanation, “pay adjust.” Mr Reilly said that this was pay in lieu of the regular and rostered overtime that the complainant would have worked if he had not been suspended. The payslip dated December 24th 2019 shows that the complainant’s accumulated earnings at the end of 2019 were €44,183. If he had been paid for working 40 hours a week, by the end of the year, his accumulated earnings would have been €33,800. Based on these arguments and the supporting legal precedents, Mandate asked that I find the complainant’s case to be well-founded and that I direct the respondent to pay compensation which is just and equitable. |
Summary of Respondent’s Case:
In the opening of her submission for the respondent, Ms O’Riordan argued that the complainant has failed to adequately outline the specifics of the alleged deduction from his wages and he has referred only to one date, June 29th 2020. He has not stated the amount which he claims was unlawfully deducted. Ms O’Riordan said that the complainant never raised a grievance about this matter under the company’s Grievance Procedure. As a result, the respondent has not had an opportunity to investigate or to resolve any matters that may have existed. Background The complainant’s contract provides that he is required to work 40 hours each week. His current hourly rate of pay is €16.53, which amounts to weekly wages of €661.20 for 40 hours. A copy of the complainant’s contract of employment was included in the respondent’s book of papers for the hearing. On the complaint form that he submitted to the WRC on September 23rd 2020, the complainant alleges that the respondent “failed to pay me my full contracted hours which amounted to an illegal deduction from my wages.” He did not outline the nature of the deduction, and only stated that an alleged deduction occurred on June 29th 2020 and that it has been “ongoing weekly since…” On March 16th 2020, following the imposition of the government’s restrictions due to Covid-19, the respondent ceased operations in all its retail stores across the country. The stores remained closed for 14 weeks until the end of June. Over the course of the pandemic, the company followed the government restrictions with stores either temporarily closing or opening with limited capacity, reduced trading hours and strict public health measures. The respondent’s business in the Republic of Ireland made operating losses of €8m in 2020 and €28m in 2021. On May 28th 2020, Ms Marion Ryan, the respondent’s retail director for Ireland, contacted employees and advised them of the business’s plans for the remainder of 2020 in light of the pandemic. Ms Ryan indicated that, over the following five weeks, the company would communicate with employees to let them know the plans for re-opening and to ensure that they were safe and confident about returning to work. He said that the company would be asking employees to be flexible with their return to work and their shifts so that all colleagues could be supported, including employees with children and those caring for elderly or vulnerable family members. In her submission, Ms O’Riordan said that the re-opening of the betting shops would be far from business as usual and employees were expected to be flexible and understanding on their return to work. Business in July 2020 was down 56% compared to July 2019 and, at year-end, weekly business levels were down by 35% compared to December 2019. While the retail stores were closed from March to June 2020, employees were paid for their full contractual hours and no employee was required to apply for government support, despite the detrimental impact of the pandemic on the business. During the periods of lockdown in 2020 and 2021, between €27m and €30m was paid in wages when none of the retail employees were at work. During the closure, the complainant never raised a grievance concerning the fact that he was not paid for his “full contracted hours.” As set out in the complainant’s contract, overtime could only be availed of when it was required by the business. From March 23rd until June 15th 2020, the complainant was paid for his full contracted hours of 40 hours per week and he didn’t raise an issue with this. In the week of June 15th 2020, the stores opened with a limited capacity. Restricted trading hours meant that the stores opened for six hours less per week. In the weeks ending on June 22nd and 29th, the complainant worked 40 hours each week. In the week ending on July 6th, he worked for 44 hours. Ms O’Riordan included copies of the complainant’s payslips in her submission. She said that these show that the complainant was paid €661.20 for working 40 hours each week for the first two weeks of the return after the lockdown, consistent with his hourly rate of €16.53. The company’s overtime policy clearly states that “overtime should only be worked where necessary and where it is genuinely not possible to meet the needs of the business within the standard business hours.” At the time, following the partial opening of the betting shops, there was no business requirement for any staff to work overtime because the stores were operating with limited capacity, mandated reduced opening hours and a 56% reduction in business. Regarding overtime, the complainant’s contract states as follows: You may be required to work overtime. Overtime is paid at time and one half for normal hours worked in excess of 40 hours in any one given week. This excludes hours paid at premium rate – Sundays & Evenings. Overtime hours are only worked when the business needs employees to do so. Overtime is always based on the company’s needs and is worked only when required. The complainant was never informed that he was entitled to a 48-hour contract and he was not given a guarantee that he could work a certain number of overtime hours. The company’s overtime policy refers to standard working hours: The “standard working hours” are an employee’s regular, contracted working hours. These hours have been specified in employee contracts of employment and follow legal guidelines regarding minimum or maximum limits. Before working overtime, the hours must be approved by a district manager. When employees returned to work following the first and second lockdowns, they were informed that they were not to work overtime without getting approval in advance. The Overtime Policy provides as follows: All overtime must be pre-approved and under no circumstances can employees schedule their own overtime without approval…A request for overtime hours to be worked by the Shop Manager, where there is a requirement to do so, will need to be emailed to their District Manager in advance of working the overtime hours. All overtime must be approved by their District Manager. In response to the new public health guidelines, the respondent reviewed its business model in line with the challenges presented by the Covid-19 pandemic which resulted in financially devastating consequences. As part of that process, the company decided to review its overtime policy. Having worked closely with the employees’ forum representative group and district managers, a new overtime policy was introduced and issued to employees in the retail stores. The policy defines overtime; it deals with new processes and notification periods, pay for overtime, the process to be followed by managers and final approval by district managers. The Respondent’s Position on this Complaint It is the respondent’s case that there has been no unlawful deduction from the complainant’s wages. He has worked the hours required by the business, which were advised to him in advance of him accepting his job. He never received wages below his contractual wages. In reaching this conclusion, the respondent is taking account not only of the complainant’s written contract, but the operation of his contract in reality and the established norms of the respondent’s business in general. Like Mandate, Ms O’Riordan also quoted from section 5(6) of the Payment of Wages Act which addresses deductions from wages. He submitted that it is important to establish what wages are “properly payable” to the complainant on “the occasion” referred to. It is the respondent’s case that the wages properly payable to the complainant were the wages which were advised to him in his contract of employment. He argued that, for this reason, there is no jurisdiction for this complaint to be heard under the Payment of Wages Act. Concluding her submission, Ms O’Riordan referred to the decision of an adjudicator in A Sous Chef v A Hotel[8] where the adjudicator concluded that there had been no deductions from the sous chef’s wages, as he was on an “all-in salary.” Conclusion Ms O’Riordan informed me that the company does not recognise Mandate for the purpose of collective bargaining. He said that the crux of this case is that 40 hours were paid during 14 weeks of the lockdown, at a cost to the company of €30m. No issue about this was raised by employees. Employees were paid their wages and did not have to apply for the pandemic unemployment payment. Since June 2020, the business has not been operating normally. Ms O’Riordan said that there is a significant difference between the Dunnes Store v Doyle case (footnote 2) and the complainant’s case. Ms Doyle was paid for her overtime hours when she was on holidays, whereas the complainant’s holiday pay does not include overtime. Ms O’Riordan disputed the complainant’s claim that he generally worked 48 hours a week and he said that the company’s analysis shows that his average weekly hours in the three years before the pandemic were as follows: 2017: 41 hours 2018: 41 hours 2019: 42 hours Ms O’Riordan said that the complainant is currently working overtime. In her submission, she included details of overtime worked by the complainant during six weeks from February 21st until March 28th. Apart from one week when he was on annual leave, the complainant worked overtime of between 2.5 hours and four hours. In the week that coincided with the Cheltenham Races, he worked 9.5 hours of overtime and in another week, he did no overtime. |
Evidence:
Evidence of the Complainant, Mr McSweeney At the hearing, the complainant said that, before the lockdown, and, for 11 or 12 years, he worked eight hours of overtime every week. He said that he was expected to work a reasonable level of overtime and his overtime has been very consistent. His shop opens from 9.30am until 9.30pm on Mondays to Saturdays and from 9.30am until 6.00pm on Sundays. Mr McSweeney strongly refutes the respondent’s assertion that his average hours per week were 41 or 42 hours. He said he works overtime on two nights a week for hour hours each night. He said that two people are always rostered to work in the shop, and this is the arrangement, unless someone is out sick. On the date of his hearing, May 10th 2022, the complainant said he now generally works two eight-hour shifts and two 12-hour shifts, giving him just 40 hours a week. When the shops opened after the Covid-19 pandemic, the complainant said that the district co-ordinator took over the roster. He said that he was told not to roster himself for more than 40 hours a week. In response to questions from Ms O’Riordan, Mr McSweeney said that the business is not the same since the lockdowns of 2020 and 2021. He has worked overtime on only a few occasions, and he was never rostered to work overtime. He said that he did some overtime in March 2021. Evidence of Mr Pat Hand, Head of Operations for the Irish Retail Business Mr Hand said that the business in the store where the complainant works is very low. The deputy manager has been absent due to illness for a long time and that role is no longer required. The store is open for seven days a week, and overtime is available to the manager. Speaking about the business in general, Mr Hand said that the business is now 25% behind what it was before Covid-19. He said that in June 2020, business was reduced by 65% and, in December 2020, it was down 35% on the same month in 2019. He said that older customers are slow to return to the shops and that the growth in the online business doesn’t match the fall-off in the retail business. Mr Hand said that there is a reduced requirement for hours to be worked in the shops. He said that overtime is still required to cover for sickness, holidays and other absences, but due to the slow-down in the business, there isn’t the same need for overtime. Mr Hand said that there is no ban on overtime, and that many employees worked overtime during the week of the Cheltenham Races in 2021. The complainant worked 44 hours during that week and two weeks beforehand, he also worked 44 hours. Mr Hand said that there is a reduction in staff in the retail business because of the reduction of one hour of opening in the morning, and the reduction in the number of employees required on Saturday afternoons. Before Covid-19, the start and finish times for retail employees was from 8.30am to 9.30pm. Employees came to work at 8.30am and the shops opened at 9.00am. Now, employees start at 9.30am and the shops open at 10.00am, meaning that the opening hours in the shops has been reduced by one hour each day. To reduce pressure on public transport, until December 2020, shops were only permitted to open at 10.30am. The shops now close on Sundays at 6.30pm. On Saturdays, two people are now required to work instead of three. Mr Hand said that the lack of overtime does not mean that the shops have to close. Mr Hand reiterated the respondent’s case that overtime must correspond to a business need. He said that overtime was always voluntary. He rejected the union’s argument that the company reduced the working hours of employees and he referred to the fact that employees were paid for their contractual hours for 14 weeks when the shops were closed. Mr Hand also referred to the complainant’s statement that he had no choice but to come to the WRC. He said that no grievance was raised and that the company didn’t get an opportunity to resolve matters. |
Findings and Conclusions:
Consideration of the Facts It is apparent that the complainant is contracted to work for 40 hours a week but, since he joined the company in 2008, he has worked more hours, and he generally around 48 hours every week. At the hearing, the complainant said that he has not returned to working the level of overtime that he worked in 2019. Taking account of an end of year bonus and a Cheltenham Races bonus (estimated at €800 for both), his accumulated earnings at the end of 2019 were €43,383. If he had done no overtime, he would have earned €33,800. It is apparent therefore, that the complainant earned an average of €184 each week in overtime, equivalent to pay for 11 hours. This is not consistent with the respondent’s submission that the complainant worked an average of 42 hours a week in 2019. In his evidence, the complainant was convincing in his description of his working life, which was based on two long shifts of 12 hours and three shifts of eight hours. I am satisfied that these shifts were the complainant’s normal working hours. I am also satisfied that, until June 2020, he did not seek permission on a weekly basis to work these hours, but that he was relied upon by the respondent to work two late nights every week. It is interesting to note that, while he was suspended for a period in 2019, the complainant received his wages for 40 hours and later on, he was paid for the hours he normally works in overtime. This indicates to me a certain acknowledgement of the regularity of the complainant’s 48-hour roster on the part of the employer. Loss of Overtime and Loss of Earnings The respondent’s position is that the complainant has no contractual entitlement to overtime hours, whereas the union argues that, by virtue of the frequency and number of overtime hours he worked over many years, he has an implied contractual entitlement to be rostered for his “normal” overtime hours. If this argument was aired under the Industrial Relations Act, an adjudicator or the Labour Court might find merit in the union’s case. However, that argument would be about loss of overtime and the complaint I must consider is about loss of wages. The issue I must consider is if there has been an illegal deduction from the complainant’s wages. The Relevant Law Section 1 of the Payment of Wages Act 1991 (“the Act”) provides a definition of “wages:” [W]ages 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 without his having given to the employee the appropriate prior notice of the termination, being a sum paid in lieu of the giving of such notice. The remainder of this section deals with the issue of expenses which are not wages and is not relevant to the complainant’s case. The definition of wages is broad and encompasses “any sum payable” to an employee related to their job, whether that payment is governed by a contract or otherwise. Section 5(6) of the Act provides that, to ground a claim under the Act, wages must be properly payable: (6) Where— (a) the total amount of any wages that are paid on any occasion by an employer to an employee is less than the total amount of wages that is properly payable by him to the employee on that occasion (after making any deductions therefrom that fall to be made and are in accordance with this Act), or (b) none of the wages that are properly payable to an employee by an employer on any occasion (after making any such deductions as aforesaid) are paid to the employee, then, except in so far as the deficiency or non-payment is attributable to an error of computation, the amount of the deficiency or non-payment shall be treated as a deduction made by the employer from the wages of the employee on the occasion. The union’s argument is that, because of the respondent’s decision not to allow the complainant to work overtime, there is a “deficiency” in his wages, and this deficiency is an illegal deduction. To reach a conclusion on this matter, I must consider if the wages that the complainant would normally earn in overtime pay, were “properly payable” when he was not permitted to work overtime between June and December 2020 and May and December 2021. Examination of the Legal Precedents Mr Fuery referred to the decision of the former Employment Appeals Tribunal (EAT) in Sullivan v the Department of Education (footnote 4) and, while the issue in that case is not about loss of overtime, the Tribunal’s reference to a deduction in wages is useful: “…the Tribunal considers that if an employee does not receive what is properly payable to him or her from the outset then this can amount to a deduction within the meaning of the 1991 Act. We take ‘payable’ to mean properly payable.” The Act does not define the concept of “properly payable” and I must reach a conclusion on the issue based on the objective facts, with due deference to previous findings of the Labour Court or other authorities. Most claims about loss of overtime which have been considered by the Labour Court are brought under the heading of the Industrial Relations Act 1969 as “disputes.” The precedents cited by Ms O’Riordan, for the respondent, are all considered under the Industrial Relations Act as claims for compensation for loss of overtime (Coombe Hospital v Voluntary Hospitals Craft Group[9], HSE Mid- West v SIPTU[10] and HSE v IMPACT[11]). This is indicative of the generally understood position that the fallout from a loss of overtime is a sense of unfair treatment and a claim for compensation, rather than a legal entitlement to pay. Mr Fuery referred to the determination of the former EAT in 2012 in the case of Elizabeth Doyle v Dunnes Stores. Ms Doyle and Dunnes Stores had an interesting journey from the Rights Commissioners to the Employment Appeals Tribunal, then to the High Court and, in 2017, a return visit to the EAT. Ms Doyle worked 2.5 hours of overtime every week for 30 years and, in 2009, when the branch of Dunnes Stores where he worked stopped opening late on one night a week, he lost that overtime. He submitted a complaint under the Payment of Wages Act 1991; however, a former Rights Commissioner found that there had been no illegal deduction from her wages. He appealed this finding to the EAT which determined in her favour, finding that there had been an illegal deduction from her wages for a period of 26 weeks (footnote 2). Dunnes Stores appealed that determination to the High Court on a point of law (footnote 3). Mr Justice Birmingham concluded that the EAT decided the case on the facts and that an appeal on a point of law could not succeed. He also made the following remarks regarding the facts themselves: “I am bound to say that I find the factual conclusions arrived at slightly surprising and I think that if I was called on to decide upon the facts I might well have reached a different conclusion, but that it not my role in this case.” In 2017, Dunnes Stores returned to the EAT to appeal against another finding of a Rights Commissioner in favour of Ms Doyle regarding the loss of 2.5 hours of overtime for periods from 2012 until 2014[12]. On the date of the hearing, he was back working 2.5 hours’ overtime every week. The Tribunal found as follows: “An employee is only entitled to be paid for one late night if worked and because the claimant did not work this one late night for the periods as set out above, he is not entitled to the payments. The respondent is only obliged to provide overtime or one late night, equating to 2.5 hours if it was available and as such, custom and practice does not apply.” By this decision, the earlier finding of the Tribunal regarding the same dispute between the same parties was overturned. The Tribunal was clear that, although Dunnes Stores removed the opportunity for the overtime from her, Ms Doyle was not entitled to payment for overtime that he did not do. I note the findings of the Labour Court in the case of Inisbofin Community Services (footnote 5) which Mr Fuery also presented as a precedent in support of the complainant’s case. I find however, that the reduction by €1.00 per hour in the complainant, Ms Burke’s wages falls squarely within the meaning of a deduction in wages. The claim before me is different, as it is a claim for loss of earnings for work not done, albeit at the will of the employer and not the employee. Findings With the closure of the respondent’s shops in March 2020, the complainant remained at home, but he was paid as if he had been at work for 40 hours a week – the hours stipulated in his contract. He did not complain that he didn’t get paid for his normal overtime hours, which is a reasonable response to a situation when most employees who were laid off in businesses across the country relied on the pandemic unemployment payment of €350 per week. I find no fault with the complainant because he did not complain about the reduction in his wages during the 14 weeks when the betting shops were closed. When he returned to work in June 2020, the complainant was informed that he was to limit his hours to 40 per week. This arose because of the contraction in the opening hours in the shops and the significant reduction in trade. I accept the complainant’s evidence that he was not rostered for working two late nights and that others were called in to work instead. It seems to me that the respondent attempted to reduce labour costs by rostering part-time employees to cover the hours normally worked by the complainant. Employees who work less than 40 hours a week are not paid overtime, so this resulted in a 33% saving in wage costs (€16.53 per hour instead of €24.80) for the overtime hours normally worked by the complainant. If an employee covering the complainant’s shift was not a deputy manager, their hourly rate would be less and the saving would be greater. The decision not to allow the complainant (and many of his colleagues) to work his normal late nights and to roster another, lower-paid employee to work instead seems to be one of the measures taken by the company to reduce the significant losses of the pandemic, but this came at a cost to employee relations. However, my job is to consider this complaint under the heading of the Payment of Wages Act and not as an industrial relations matter. I note the respondent’s case that the complainant never raised a grievance about his loss of overtime. It is apparent however, from the letter from Robert McNamara of Mandate to Marion Ryan of the company on June 8th 2020, that Mr McNamara was seeking to engage with the respondent to resolve the issue of the loss of overtime. Even if the company has a policy of not communicating with the union, they were aware from this letter that their employees had a grievance, but they took no action to resolve it. On the date of this hearing in May 2022, the complainant was working some overtime, but he had not returned to his normal level of overtime working. Considering the accumulated earnings on his payslip up until the end of 2019, I am satisfied that, in 2019, he worked an average of eight hours of overtime every week to bolster his weekly pay of €661.20 and that, for the most weeks of the year, he earned around €180 on top of his basic pay. I am satisfied that the complainant’s overtime was regular and rostered. There is no evidence to indicate that overtime was or is compulsory and it seems to me that, if the complainant decides that he no longer wants to work the late nights, someone else will be rostered to cover the hours. Conclusion In conclusion therefore, I find that the overtime worked by the complainant, while it was regular and rostered, was not compulsory. The complainant is not contractually required by his contract to work the level of overtime that he works. The complainant opted to work the additional hours on the roster and, I am satisfied that, if he decides to revert to a 40-hour week, there will be a significant reduction in his wages, but there will be no other repercussions. In 2020 and 2021, when the respondent’s shops re-opened after the Covid-19 restrictions, the complainant was not permitted to work his normal level of overtime and his earnings were reduced. I acknowledge that the effect on his wages was significant; however, considering the fact that the hours lost were not in fact hours worked, it is my view that the loss of overtime pay is not encompassed by the meaning of “wages properly payable.” I find therefore, that, when the complainant did not work his normal overtime hours, there was no illegal deduction from his wages. |
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.
For the reasons I have set out above, I decide that this complaint under the Payment of Wages Act is not well founded. |
Dated: 11/11/2022
Workplace Relations Commission Adjudication Officer: Catherine Byrne
Key Words:
Loss of overtime, payment of wages, wages properly payable |
[1] Potter v Hunt Contracts Limited [1992] IRLR 108
[2] Elizabeth Doyle v Dunnes Stores PW 342/11
[3] Dunnes Stores v Doyle [2014] 25 ELR 184
[4] Sullivan v the Department of Education [1998] ELR 217
[5] Inisbofin Community Services Programme Company Limited v Brenda Burke PWD 1614
[6] McKenzie v the Minister for Finance 2011 ELR 109
[7] Earagail Eisc Teoranta v Doherty [2015] 26 ELR 326
[8] A Sous Chef v A Hotel ADJ-00012556
[9] Coombe Hospital v Voluntary Hospitals Craft Group
[10] HSE Mid- West v SIPTU
[11] HSE v IMPACT
[12] Dunnes Stores v Elizabeth Doyle PW21/2015