Complainant

Respondent

Parties

Vitalijs  Kipluks

Musgrave Wholesale Partners

Complainant

Respondent

Anonymised Parties

{text}

{text}

Representatives

Niamh Daly TO ISSUE BY EMAIL TO: cases@ibec.ie

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-00057970-001

28/07/2023

The Complainant alleges that the Respondent unlawfully deducted money from his wages. The Respondent states that they inadvertently overpaid the Complainant. The deduction that was made was lawful and in compliance with the Complainant’s contractual terms and had been consented to by the Complainant.

Complainant gave his evidence under oath:

In February 2023 the Complainant’s salary was reduced for no reason. It was €2,600.00 previously but was reduced to €1,500.00 net. It remains around €1,500.00 now.  His contract states that he is to be paid €37,000.00 per annum. He works three days per week Saturday Sunday and Monday. When he started with the Respondent, he worked five days a week. Before the reduction was made, he had a meeting with HR. The meeting was about a mistake made about his payments. He was being accused of something. He didn’t know what. He was told that it had been discovered that he was being paid for five days and not three since February 2020. Ms. O’ Connor asked him to confirm that he was being paid for five days when he was only working three. He accepted that he was. However, he works a lot of hours, twelve or thirteen hours per day and he should be paid for that.  They are paid by day. He normally worked 36 hours over the three days. In the complaint form he states that he is owed €1233.33. That was the amount of the deduction in February 2020

The Complainant accepted that the company has a contractual right to make deductions if there has been an overpayment or something like that. He did consent to the deduction in February 2020.  He stated that he is working hours that he is not being paid for. He wants to get the money he is owed. He works on Sunday and there should be an additional payment for working on Sundays. He doesn’t get anything extra. The Complainant does not have any information available today save for the submissions filed with the WRC.

Karen O’ Connor, Human Resources Manager for the Respondent took the affirmation and gave her evidence as follows:

There has been no deduction. The Complainant originally worked a five day week. He requested to work a three-day week. The Company facilitated that. He opted to work Saturday, Sunday and Monday. From March 2020 to January 2023, he was overpaid as if he was working five days and not three. That was rectified from February 2023 and continues today. For all of those over payments only one month has been recouped. That was back in 2020. A deduction letter was issued to the Complainant at the time. It was recouped over the months of March April and May 2020. The Complainant signed a document authorising the deduction. However, due to an error that wasn’t noticed by the Respondent he continued to be overpaid until February 2023.  The Respondent met with him in January 2023 and inquired about his working days. He confirmed that he was only working three days a week. From February the salary has be reduced to 3/5 because he works only three days out of five. The Respondent has not sought to recoup the sums overpaid other than the payment back in 2020. He is simply being paid his correct salary for a three day week.  

The issue was discovered when a type of audit was being carried out in relation to payments to employees. It was discovered that he was being paid three days subsistence but was being paid for five days. Mr. O Connor called the Complainant to clarify his working days. It was explained to him that he was being paid for five days when he should be only paid for the three days he worked. He confirmed that he was aware of the error. It was explained to him that this was a serious matter. She told him that she would have to talk to management but either way it would have to be rectified. He is a salaried employee. He worked 3 out of 5 days so he was to be paid 3/5 of the full five day salary that is set out in is contract of employment. His gross salary of €37,000.00 is for five days a week. The difference in that per month is €1,233.33 for three days a week.

The Complainant when he commenced working for the Respondent worked five days a week. His salary as set out in his contract of employment is €37,000.00 gross per annum. In early 2020 the Complainant requested that he be allowed to work only three days per week. The Respondent granted his requested. The first month he worked three days per week was in January 2020. In error he was paid for five days that month and not three. The error was spotted, and the Complainant agreed, by signing a form allowing for the deduction, that the Respondent could recoup the monies over the months of March, April and May. Despite spotting the overpayment in February 2020, Payroll did not amend his working days on their system, and he continued to be paid for five days and not three. The Complainant was aware of this but said nothing. That was dishonest. This went on for three years. It wasn’t until a review of payments was carried out that the error was spotted. The Complainant, when asked, admitted that he was aware of the overpayment but said nothing. He was informed by Ms. O’ Connor that the situation would be rectified that going forward he would be paid 3/5 of his contractual salary. The Respondent has not sought to recoup any of the overpayments yet. There is an investigation into the matter ongoing.

Based on the evidence adduced by both parties I find that not only was there no unlawful deduction but there was no deduction at all. The Complainant’s salary was simply reduced to reflect the change in his working hours.

The Complaint is not well founded and accordingly fails.

The Complaint is not well founded and accordingly fails.

Reduced hours. Unlawful deductions. Contractual entitlement.