Complainant

Respondent

Parties

David  O'Shaughnessy

Sortridge Limited t/a Packed House

Representatives

Self-represented

Eugene McLaughlin, Liquidator

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-00065395-001

14/08/2024

The Complainant submits that that the non-payment of bonuses, which he had earned and accrued, amount to an unlawful deduction under the Payment of Wages Act 1991.

The Respondent has entered into liquidation and was represented at the hearing by the Liquidator.

The Complainant submits that previous bonuses were paid twice yearly in arrears in January and July. The Complainant submits that he received bonus payments in 2019; in January 2020; and in January 2021. The Complainant submits that no bonus was awarded in July 2020 as the Respondent’s employees were in receipt of payment under the COVID-19 Temporary Wage Subsidy Scheme.

The Complainant submits that he did not receive the bonus payments that were due to him in July 2021, January 2022, July 2022, January 2023, July 2023 and January 2024 and that and no formal communication in this regard was issued by the Respondent. The terms of the bonus plan were outlined in his employment contract dated March 22nd, 2018.

The Complainant submits that, as of the date of the adjudication hearing, he is owed the sum of €10,500 by the Respondent for bonuses earned but not paid in 2021, 2022, and 2023.

The Complainant submits that enquiries he made from 2021 onwards about the outstanding bonus payments were repeatedly met with a promise of an update at a later date.

The Complainant submits that he received notice via email on 26 January 2024, confirming that bonus payments were due for the years 2021, 2022, and 2023 of €4,200 for each year amounting to a total of €12,600. He was informed that these outstanding payments would be paid in monthly amounts of €350 over the following 36 months through the payroll. The Complainant confirms that six monthly payments of €350 were paid to him in January, February, March, April, May and June 2024.

The Complainant submits that, on Monday 22 July 2024, he was informed by phone and later by email that the company had decided to enter into liquidation, leaving him with outstanding unpaid bonus payments of €10,500.

The Complainant submits that the withholding of his bonus entitlements for 2021, 2022 and 2023 is unfair and unreasonable, and amounts to an unlawful deduction of wages under section 5 of the Payment of Wages Act 1991.

The Liquidator submits that the Respondent entered into the SCARP process which is an examinership for small companies. The Respondent emerged successfully from this process.

The Liquidator confirmed that the Respondent is not disputing that outstanding bonus payments to the value of €10,500 are owed to the Complainant.

There is no dispute between the parties that the Complainant is due bonus payments to the value of €10,500 which were outstanding when the Respondent went into liquidation.

Deduction from wages

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

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.

Having considered the submissions of the parties and all evidence presented at the hearing, I find that the Respondent has made an unauthorised deduction of €10,500 from the Complainant’s wages.

I declare that this complaint is well founded, and I direct the Respondent to pay the Complainant the sum of €10,500.

Unpaid bonus - liquidation