Complainant

Respondent

Parties

Laura  Brown

Maherus Ltd t/a Papertrain

Representatives

  Self-represented

No appearance

Act

Complaint Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under Section 39 of the Redundancy Payments Act, 1967

CA-00052448-001

29/08/2022

The Complainant commenced employment on the 1/9/2010 as the Manager of the Respondent’s business, a newsagent’s shop and received weekly remuneration in the sum of €315. The Complainant was made redundant on the 16/3/2022. The Complainant was not paid her statutory redundancy payment as the Respondent went into liquidation.

The Complainant lodged her claim under the Redundancy Payments Acts 1967-2014 with the WRC on the 29/8/2022.

The owner of the Respondent company informed the WRC by email dated 18/4/23 that the Respondent was liquidated in December 2022 and forwarded contact details of the appointed Liquidator.  The appointed Liquidator confirmed they were acting on behalf of the Respondent by email dated 2/5/23.

No appearance was made, or evidence adduced at the hearing by or on behalf of the Respondent /appointed Liquidator. 

I note that the Respondent/ and or appointed Liquidator was notified of the date, time, and place of the hearing by way of the hearing letter dated 2/5/23 sent by email. I am satisfied that the Respondent/appointed Liquidator was properly notified of the date, time and place of the hearing and failed to attend. The Respondent has made no contact with the WRC since the hearing date.   

I proceeded to hear the case in the absence of the Respondent/appointed Liquidator.

The Complainant stated in evidence that she commended employment on the 1/9/2010 and was paid a weekly wage of €315 for 21 hours working 3 days a week.

The Complainant stated that she was laid off in March 2020 and didn’t return to work. The Complainant stated that she received her last pay slip in March 2020.  The Complainant stated that her job was terminated in March 2022 due to the closure of the business.  The Complainant stated that she asked the owner of the Respondent business to pay her a redundancy payment, however  he stated that he had no money to pay her.

The Complainant sent a payslip dated 6/3/2020 to the WRC post hearing.

The Complainant confirmed that she did not receive any redundancy payment.    

The Respondent was notified of the date, time, and place of the hearing and advised the WRC by email dated 18/4/23 that he was aware of the hearing date, confirmed that the Respondent has not traded since January 2022 and that the company was liquidated in December 2022 by Fitzpatrick O'Dwyer Accountants, Limerick. He confirmed that any further correspondence should be forwarded to the Liquidator as he no longer had any capacity in Maherus Ltd.

The appointed Liquidator confirmed they were acting on behalf of the Respondent by email dated 2/5/23. The appointed Liquidator was notified of the date, time, and place of the hearing by way of hearing letter sent by email on the 2/5/23.

No appearance was made, or evidence adduced at the hearing by or on behalf of the Respondent /appointed Liquidator. 

The Complainant submits that she is entitled to a statutory redundancy payment.

Section 7 (1) of the Redundancy Payments Acts 1967 – 2014 (the Acts) provides for a general right to a redundancy payment to an employee who is dismissed by reason of redundancy once various conditions are satisfied. 

Section 7(2)(a) of the Acts provides that the closure of an employer’s business is a valid ground for redundancy and provides as follows;

“…the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased or intends to cease, to carry on that business in the place where the employee was so employed”.

Based on the uncontested evidence of the Complainant it is clear that the Respondent ceased to carry on the business, effectively making the Complainant’s role redundant. Having regard to the foregoing, and the wording of Section 7 (2)(a) of the Acts, I allow the Complainant’s appeal.

Subject to the Complainant being in employment which was classified as insurable under the Social Welfare Acts, I am satisfied that the Complainant is entitled to a redundancy payment pursuant to the provisions of the Acts based on the following facts:  

•         Commencement date: 01/09/2010

•         Cessation date: 16/03/2022

•         Gross weekly wage: €315

I note that Schedule 3 of the Acts defines the period which can be considered as “reckonable service” and does not include any period of absence from work due to lay off.

Based on the uncontested evidence of the Complainant in relation to the foregoing facts I allow the Complainant’s appeal. 

Redundancy payment – closure of business -