ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00044187
Parties:
| Complainant | Respondent |
Parties | Noel Brady | XS Direct |
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-00050721-001 | 19/05/2022 |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 | CA-00050721-002 | 19/05/2022 |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 | CA-00050976-001 | 02/06/2022 |
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 | CA-00050976-002 | 02/06/2022 |
Date of Adjudication Hearing: 03/05/2023
Workplace Relations Commission Adjudication Officer: Pat Brady
Procedure:
In accordance with Section 41 of the Workplace Relations Act, 2015 [following the referral of the complaints to me by the Director General, I inquired into the complaints and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaints.
Summary of Complainant’s Case:
On April 15th, 2020, at the beginning of the Covid-19 epidemic the complainant and his co-workers received an email from their Chief Executive proposing reductions in their remuneration package. (The email was submitted in evidence) The measures proposed were a reduction in salaries by 15% beginning with April payroll to continue for at least two quarters, and a similar reduction in bonuses. Lower paid workers were to be excluded from the measures. While the email ‘announced’ the measures it indicated that employee consent would be required. In due course the cut were reversed but, in the communication, announcing this the respondent stated.
We are very pleased to confirm, the Receivers have reviewed the circumstances in which the 15% reduction was imposed by the Company and are now re-instating the 15% reduction from the 16th February 2022 up to your leaving date. The payment of any resulting amount owing to you from the period 16 February 2022 to May 2022 will be paid in the May payroll. You will continue to be paid your reinstated salary until your leaving date. Unfortunately, any claims for amounts owing to you as a result of the 15% reduction prior to 16 February 2022 cannot be paid by the Receivers. We are aware that a number of employees have lodged claims with the WRC in respect of the deduction pre the 16th February 2022 and we can confirm that the Joint Receivers will not be objecting to any of the these claims on behalf of the Company. The Joint Receivers will also not object to an new claims lodged with the WRC in respect of the period pre- 16th February 2022. We would like to confirm that for those of you leaving on June 10 vow will be paid your final salary on June 28. It is not feasible for two payrolls to be run within the month. We also wish to confirm that in the event of there being an ex-Gratia payment made at the end of the run-off period, this applies for the duration of your time working for the entity in receivership and as such will be made from the 16th February onwards.
The complainant gave evidence on affirmation.
He submitted a detailed account of the monies which remain owing to him on a monthly basis between January and December 2021.
He also submitted a pay slip from 2019 showing his monthly wage was €3541.66 (€42,500 yearly salary) and a pay slip from December 2021 showing the company reduced this to 3010.41 (15% reduction).
He also provided the email from when the company reduced wages by 15% without agreement dated 15th April 2020 and the email from Thursday 21st January 2021 advising this was then being extended.
The reduction in the bonuses was summarised as follows July 5190 – 4411.50 = 778.50 August 4330 – 3680.50 = 649.50 September 4360 – 3706 = 654 October 4485 – 3811.40 = 673.60 November 4700 – 3995 = 705 December 6560 – 5576 = 984 Total: 4444.60
The bonus was reduced by €4444.60 over six months July to December 2021 before company went into administration.
The total due is €4444.60 plus 3187.50 = €7632.10. |
Summary of Respondent’s Case:
The respondent did not attend the hearing.
|
Findings and Conclusions:
The complaint was submitted on May 19th, 2022. This means the cognisable period of six months for considering any complaint runs from only from December 20th, 2021. For that month the shortfall arising and due to the complainant is €984 in bonus and €531.16 in wages, a total of €1515.16. in total. |
Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaints in accordance with the relevant redress provisions under Schedule 6 of that Act.
Complaints CA-00050976-001 and 002 are duplicates and were withdrawn at the hearing. Complaints CA-00050721-001 and 002 are well founded to the limited extent set out above and I award the complainant €1515.16 in wages due to him. |
Dated: 21 June 2023
Workplace Relations Commission Adjudication Officer: Pat Brady
Key Words:
Payment of wages, restoration of pay cuts. |