ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00047010
Parties:
| Complainant | Respondent |
Parties | Sarah Saha | Emex Software Limited |
| Complainant | Respondent |
Anonymised Parties |
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Representatives |
| Paul Gough Beauchamps |
Complaint:
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-00057971-001 | 29/07/2023 |
Date of Adjudication Hearing: 22/11/2023 and 11/07/2024
Workplace Relations Commission Adjudication Officer: Penelope McGrath
Procedure:
The Complainant has brought a complaint of a contravention of the Payment of Wages Act, 1991 which is an Act contained in Schedule 5 of the Workplace Relations Act of 2015 and where such a complaint is presented, the Director General is empowered to refer that complaint forward for adjudication by an Adjudication Officer pursuant to Section 41(4) of the Workplace Relations Act, 2015. Following the said referral,it is incumbent on the assigned Adjudicator to make all relevant enquiries into the complaint. This will include hearing oral evidence, considering submissions made by the parties and the receiving of other relevant evidence.
In particular, the Complainant herein has referred the following complaint:
A complaint of a contravention of Section 5 of the Payment of Wages Act, 1991. This is a complaint of an unlawful deduction having been made from the Employee’s wage. Pursuant to Section 6 of the said 1991 Act, and in circumstances where the Adjudicator finds that the complaint of a contravention of Section 5 aforesaid is deemed to be well founded, then the Adjudicator can direct that the employer pay to the employee an amount which is subject to the limits set out in Section 6 of the 1991 Payment of Wages Act 1991.
Section 5 of the Payment of Wages Act, 1991 sets out
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.
The following section appears to be most pertinent to the Complainant who appears to have been getting paid less than what was due to her under her Contract of Employment.
5.-(6) Where—
(a) the total amount of any wages that are paid on any occasion by an employer to an employee is less than the total amount of wages that is properly payable by him to the employee on that occasion (after making any deductions therefrom that fall to be made and are in accordance with this Act), or
(b) none of the wages that are properly payable to an employee by an employer on any occasion (after making any such deductions as aforesaid) are paid to the employee,
then, except in so far as the deficiency or non-payment is attributable to an error of computation, the amount of the deficiency or non-payment shall be treated as a deduction made by the employer from the wages of the employee on the occasion.
It is important to state that the Adjudication Officer must be aware of applicable time limits and in this regard, the Workplace Relations Act 2015 specifies at Section 41 (6) that (subject to s.s.8) an Adjudication Officer shall not entertain a complaint referred to said Adjudication Officer after the expiration of the period of six months beginning on the date of the contravention to which the Complaint relates.
Section 41 (8) specifies that the Adjudication Officer may entertain a Complaint or dispute to which section 41 applies after the expiration of the six month period referred to in ss. (6) and (7) – though not later than a further six months after the initial expiration as the case may be - if the Adjudication Officer is satisfied that the failure to present the complaint or refer the dispute within that period was due to reasonable cause.
By way of preliminary observation, I am satisfied a Contract of Employment existed between the parties such that a wage defined by the 1991 Act was payable to the Employee by the Employer in connection with the employment.
I further find that the Complainant’s Workplace Relations Complaint Form was submitted on the 29th of July 2023.
“Wages”, in relation to an employee , means any sum payable to the employee by the employer in connection with the employment, including –
- (a) Any Fee, bonus or commission, or any holiday, sick or maternity pay or any other emolument referable to his employment whether payable under his contact of employment or otherwise, and
- (b) Any sum payable to the employee on the termination by the employer of the Contract of Employment without his having given to the employee the appropriate notice of the termination, being a sum paid in lieu of the giving of such notice….
Background:
This matter was heard by way of remote hearing pursuant to the Civil Law and Criminal Law (miscellaneous Provisions) Act 2020 and SI 359/2020 which said instrument designates the Workplace Relations Commission as a body empowered to hold remote hearings pursuant to Section 31 of the Principal Act. The said remote hearing was set up and hosted by an appointed member of the WRC administrative staff. I am satisfied that no party was prejudiced by having this hearing conducted remotely. I am also satisfied that I was in a position to fully exercise my functions and I made all relevant inquiries in the usual way. On the 22nd of November 2023 the parties had presented in person at the WRC in Lansdowne Road. At the time, this matter was put back pending the implementation of an agreement that had been seemingly reached between the parties. The Complainant was unrepresented at that time. I was informed that the parties would formally seek to withdraw this case on or before the 29th of March 2024. Regrettably no agreement was finally concluded as between the parties and the matter came back before me for a second time. As the Complainant was unrepresented, it would have been inappropriate for me to have sought a withdrawal of this claim in November of 2023 when a final agreement had not been implemented. The question of whether or not I had the jurisdiction to proceed to hear this matter came into focus on the second date that his matter came before the WRC. These matters had been raised by the Respondent at the initial hearing back in November of 2023.
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Summary of Complainant’s Case:
The Complainant was not represented and made her own case. The Complainant had provided a written statement in advance of the hearing and had sourced relevant documentary evidence to make her case. I have had sight of the Contract of Employment, the termination agreement as well as a schedule of the losses put together by the Complainant. The Complainant additionally relied on the submission outlined in the Workplace Relations Complaint Form. No objection was raised to any of the materials relied upon by the Complainant in making his case. The Complainant alleges that unlawful deductions have been made to her wages in contravention of the Payment of Wages Act 1991. Where it also became necessary, I explained how the Adjudication process operated with particular emphasis on the burden of proof which had to be attained by the Complainant in the first instance. Where I deemed it necessary, I made my own inquiries so as to better understand the facts of the case and in fulfilment of my duties as prescribed by Statute. |
Summary of Respondent’s Case:
The Respondent had representation at this hearing. The Respondent entity was also represented by one of the company Directors. I heard from Mr. Kelly the Company Director. The Respondent has conceded that it owes monies to the Complainant arising out of the period of employment with them. The Respondent has proposed a plan for the scheduled payments of fixed lump sums over a period of time to discharge the debt owing. In the meantime, the Respondent has asserted that I do not have jurisdiction to deal with this matter by reason of the fact that more than six months has elapsed between the end of the employment and the issuing of the complaint through the WRC. The Respondent asserts that there can be no contravention of the Payment of Wages Act where there were no wages payable by the Employer to the Employee in that period of time. It logically follows that where no wages were payable there was no opportunity for the Respondent to deduct same in contravention of the Payment of Wages Act 1991. Where I deemed it necessary, I made my own inquiries so as to better understand the facts of the case and in fulfilment of my duties as prescribed by Statute.
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Findings and Conclusions:
I have carefully considered the matters herein. A Contract of Employment dated the 21st of June 2021 appears to govern this employment relationship. I note that the complainant was due to move to Dubai when she commenced her employment in and around August 2021. The Complainant was to be on a basic annual salary of about €165,000.00 with scope for an additional performance related bonus. Nett payments were to be paid on a monthly basis. Even though the Complainant was being paid and taxed in Dubai the Contract of Employment expresses that the Agreement is governed in accordance with Irish Law and the Irish Courts. It seems this employment relationship only lasted about sixteen months with the parties parting ways on the 9th of December 2022. In her statement the Complainant has indicated that from the start there were difficulties getting paid and I accept her evidence that at the end of her employment with the Respondent company, the Complainant was owed somewhere in the region of €280,000.00. I understand that this debt built up over the course of the 16 months of employment. It is not clear if all of this sum is attributable to wages, as other monies arising out of the expense of moving to Dubai have also been highlighted in the Contract of Employment. I do accept, however, that a good portion of the debt claimed related to unpaid wages and bonuses. I understand that in later 2022 and early 2023 the Complainant engaged a Solicitor in Ireland to negotiate a schedule of payments in respect of the monies she says were due and owing. The Employer seemed agreeable to pay and whilst a document described as an End of Employment Agreement was prepared, the terms were never implemented. For reasons only she can know, the Complainant decided not to pursue these monies through the Court as a Contract debt as her Solicitor had advised. Nor did she expeditiously trigger a complaint with the WRC. Instead, the Complainant appears to have waited some time before issuing a complaint under the Payment of Wages Act 1991 which said complaint issued on the 29th of July 2023. The date is significant as the 29th of July was seven and a half months after the termination of the employment. As the Respondent herein has pointed out, there are no instances of wages being deducted in this period of time as the employment relationship was finished. Therefore, per the Respondent, there can be no allegation of an unlawful deduction having been made during the cognizable six-month period which works back from the date of the complaint being lodged. Any monies purportedly due and owing stem from periods of time well before the six months that I am competent under Statute to consider. In the circumstances, I have to acquiesce to the proposition that I do not have the requisite jurisdiction to hear this matter. I appreciate that the Complainant had hoped for a different outcome in circumstances where some colleagues had had some success before the WRC. In this regard, I have taken the opportunity of looking at: ADJ-00043363 Aniko Knopp Emex Software Limited Which is a decision of my Adjudication colleague Elizabeth Spellman BL. I note that the complainant in that case was seeking to recover wages that had been deducted between September and December of 2022. The complaint form was lodged on the 2nd of December 2022. Ms Spelman found that she had jurisdiction to deal with those deductions which fell in the six-month period immediately preceding the complaint from issuing out of the WRC. The pertinent excerpt from that decision reads: Preliminary Issue – Cognisible Period: The Law: Section 41(6) of the Workplace Relations Act 2015 (the “WRA”) provides: “Subject to subsection (8), an adjudication officer shall not entertain a complaint referred to him or her under this section if it has been presented to the Director General after the expiration of the period of 6 months beginning on the date of the contravention to which the complaint relates.” Findings and Conclusion: The Complainant commenced work on 13 June 2022. Her last day of work was 23 December 2022. She filed her Complaint Form on 2 December 2022. In accordance with the six-month time limit prescribed under section 41(6) of the WRA, I can consider a complaint from 3 June 2022. In this instance, I can consider the complaint from 13 June 2022, which was the Complainant’s start date, until 2 December 2022, when the Complaint Form was submitted.
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Decision:
Section 41 of the Workplace Relations Act 2015 requires that I make a decision in relation to the complaint in accordance with the relevant redress provisions under Schedule 6 of that Act.
Complaint seeking adjudication by the Workplace Relations Commission under section 6 of the Payment of Wages Act, 1991 CA-00057971-001 - The case herein is not well founded in circumstances where I do not have the necessary jurisdiction to consider purported wage deductions outside the cognisable period.
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Dated: 10th of September 2024
Workplace Relations Commission Adjudication Officer: Penelope McGrath
Key Words:
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