Complainant

Respondent

Parties

Patrick  Lowbridge

Philip King Electrical Ltd.

Complainant

Respondent

Anonymised Parties

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Representatives

  Self represented

Peter Dunlea, Peninsula

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-00061879-001

29/02/2024

The complainant states that he commenced with the company on 17 July 2023 in the role of sales representative. He states that when he applied for the position, the job application clearly stated that there was a quarterly bonus structure in place. He states that if 100 sales were made in a three month period, there was eligibility for a bonus. However, the complainant states that since joining the company the bonus structure has been changed a number of times.The complainant states that these changes were made without his agreement.

The complainant further states that he was left short of an additional €500 in his January 2024 salary. He further states that during his induction training he would receive free TV and Broadband services after 6 months in employment. The complainant states that as a result of all of the ongoing issues, he felt that he had no other option but to leave the company and his last day was 16 February 2024. He feels that he has been subjected to very unfair treatment by the respondent company.     

The respondent states that the complainant commenced employment with the company on 17 July 2023 as a sales representative. It states that as part of the complainant’s induction and on-boarding, he signed a contract of employment. In addition, the complainant was provided with access to the respondent’s company handbook and health and safety statement.

The respondent asserts that as part of the complainant’s induction, he was informed of the bonus structures of the company. It states that these were outlined as a discretionary benefit that would be provided quarterly on a discretionary basis by the respondent upon certain sales targets being met. The respondent states that the terms of the bonus structure were modified in August 2023 and a call to discuss the changes was held with staff on 14 August 2023.

The respondent states that on 6 October 2023, the complainant was provided with and signed a Deductions from Pay agreement with the respondent in relation to Rules for the Use of Company Vehicles.

It was further communicated with the complainant that the company operated a deal with a TV and Broadband service provider whereby the employees can receive free TV and Broadband once they had been in employment for 6 months.

The respondent states that throughout the complainant’s employment, he was supported in his role but that the complainant failed to meet the requirements for the quarterly bonus structure.

The respondent states that the complainant subsequently resigned from his position on 12 February 2024 by e-mail and worked until 16 February 2024. In that regard, the respondent states that as complainant had decided to leave the company, the complimentary TV and Broadband was not progressed for the complainant.

The respondent states that before the end of the complainant’s employment, he returned his company vehicle and at this juncture, it was noted that there was damage to the vehicle that ultimately required the replacement of a bumper and side panel of the bumper. In this regard, the complainant signed and dated a document relating to this matter. The respondent states that the damage to the vehicle cost a total of €870 to repair and this amount was deducted from the complainant in his final payslip.  The respondent asserts that the deduction was made in accordance with the company’s deduction policy as signed off on by the complainant.   

Section 5 of the Payment of Wages Act 1991 sets out the following;

(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.

(2) An employer shall not make a deduction from the wages of an employee in respect of—

(a) any act or omission of the employee, or

(b) any goods or services supplied to or provided for the employee by the employer the supply or provision of which is necessary to the employment, unless–

(i) the deduction is required or authorised to be made by virtue of a term (whether express or implied and, if express, whether oral or in writing) of the contract of employment made between the employer and the employee, and

(ii) the deduction is of an amount that is fair and reasonable having regard to all the circumstances (including the amount of the wages of the employee), and

(iii) before the time of the act or omission or the provision of the goods or services, the employee has been furnished with—

(I) in case the term referred to in subparagraph (i) is in writing, a copy thereof,

(II) in any other case, notice in writing of the existence and effect of the term, and

(iv) in case the deduction is in respect of an act or omission of the employee, the employee has been furnished, at least one week before the making of the deduction, with particulars in writing of the act or omission and the amount of the deduction, and

(v) in case the deduction is in respect of compensation for loss or damage sustained by the employer as a result of an act or omission of the employee, the deduction is of an amount not exceeding the amount of the loss or the cost of the damage, and

(vi) in case the deduction is in respect of goods or services supplied or provided as aforesaid, the deduction is of an amount not exceeding the cost to the employer of the goods or services, and

(vii) the deduction or, if the total amount payable to the employer by the employee in respect of the act or omission or the goods or services is to be so paid by means of more than one deduction from the wages of the employee, the first such deduction is made not later than 6 months after the act or omission becomes known to the employer or, as the case may be, after the provision of the goods or services.  

I have carefully reviewed all the evidence adduced in the with matter. In relation to the complaint that the complainant was treated unfairly with regard to the respondent not giving him the free TV and broadband service; I note that the complainant resigned his employment on 12 February which was just after the 6 month period and as a consequence, the free TV and broadband was not progressed for the complainant.

In relation to the complainant’s claim with regard to not been paid the quarterly bonus, based on the evidence heard I find that the complainant did not meet the strict targets/criteria set out in the bonus structure. In that regard, he did not meet the requirements to obtain said bonus.

In relation to the complainant’s claim of unlawful deductions from his salary; I note that on return of the company vehicle it was noted that there was damage to the bumper and a side panel that required replacement and repairs. The respondent submitted a copy of the audit carried out on said vehicle in this regard. It is noteworthy that the complainant signed and dated this document. The cost to repair the damage to the vehicle was deducted from the complainant’s final payslip. I find based on the documentation submitted that the deduction was authorised under the terms of the complainant’s employment and the Deductions from Pay Agreement signed by the complainant and in those circumstances the complainant has not established a breach under the Act.  

Based on the foregoing, I find that the within complaints under the Payment of Wages Act are not well-founded.

Payment of Wages Act