Complainant

Respondent

Parties

Bethany  Lynch

Europhil Service Station T/A  Nilands 24/7

Representatives

Self-represented 

Did not attend

Act

Complaint Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under Section 39 of the Redundancy Payments Act, 1967

CA-00061334-001

01/02/2024

The Complainant commenced her employment with the Respondent on 25 August 2021. Her employment was terminated with no notice on 15 September 2023. She was paid €324 gross per week.

The Complainant referred her complainant to the Director General of the WRC on 1 February 2024.

An adjudication hearing for the purpose of investigation of the Complainant’s claim was scheduled for 22 January 2025. Correspondence informing the parties of the arrangements for the hearing issued on 18 November 2024. It was issued to the Respondent’s address as provided by the Complainant. A copy of the hearing letter was subsequently issued to the registered address of the Respondent.

There was no attendance by, or on behalf of, the Respondent at the hearing. There has been no communication from the Respondent indicating any difficulties with attending the hearing or requesting a postponement. The Complainant attended the hearing.

The Complainant submits that, along with other staff, she was informed on 15 September 2023 by a group WhatsApp message that the business would be shutting down. The premises closed on that day.

The Complainant submits that a couple of days later she received another group text informing that the business would not reopen.

The Complainant submits that the Respondent has not issued its employees with any information regarding any payments, nor has it issued RP50 forms.

The Complainant submits that she attempted to contact the Respondent, to no avail. She also tried to contact the office of what she was told was the appointed receiver or liquidator. However, there was no information forthcoming.

The Complainant said that it came as a shock as the business seemed to be doing well and was very busy. The Respondent invested in some refurbishment prior to the closure.

There was no attendance by, or on behalf of, the Respondent.

The Redundancy Payments Acts 1967 (as amended) and Regulations made thereunder provide that in order to qualify for a statutory redundancy payment, an employee must (1) have at least two years’ continuous service, excluding any period of employment with that employer before the age of 16 years (2) be in employment which is insurable under the Social Welfare Acts, (3) be over the age of 16 and (4) have been made redundant as a result of a genuine redundancy situation.

The relevant portion of Section 7 of the Redundancy Payments Act 1967 provides as follows:

7(1) An employee, if he is dismissed by his employer by reason of redundancy or is laid off or kept on short-time for the minimum period, shall, subject to this Act, be entitled to the payment of moneys which shall be known (and are in this Act referred to) as redundancy payment provided-

(a) he has been employed for the requisite period, and

(b) he was an employed contributor in employment which was insurable for all benefits under the Social Welfare Acts, 1952 to 1966, immediately before the date of the termination of his employment, or had ceased to be ordinarily employed in employment which was so insurable in the period of four years ending on that date.

(2) For the purposes of subsection (1), an employee who is dismissed shall be taken to be dismissed by reason of redundancy if for one or more reasons not related to the employee concerned the dismissal is attributable wholly or mainly to-

(a) the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased or intends to cease, to carry on that business in the place where the employee was so employed, or…

Section 7(2) of the Act stipulates that redundancy arises when an employer ceases business in the place of employment, as in the within case. 

Section 19 of the same Act provides for the payment of a lump sum by the employer as follows:

“19(1) Upon the dismissal by reason of redundancy of an employee who is entitled under this Part to redundancy payment, or where by virtue of Section 12 an employee becomes entitled to redundancy payment, his employer shall pay to him an amount which is referred to in this Act as the lump sum.

(2) Schedule 3 shall apply in relation to the lump sum.”

S.I. No. 695/2004 - Redundancy Payments (Lump Sum) Regulations 2004 sets out the current rates.

Based upon the Complainant’s uncontested evidence, I find on the balance of probabilities that she meets all the requisite criteria for redundancy as outlined above.  I am satisfied that her employment terminated on 15 September 2023.  I am further satisfied that the Respondent has not paid the Complainant her statutory redundancy lump sum entitlement to date. 

I allow the Complainant’s appeal. Based on the uncontested evidence of the Complainant, I decide that the Complainant is entitled to a statutory redundancy lump sum under the Redundancy Payment Acts based on the following criteria: 

Date of commencement: 25 August 2021

Date of termination: 15 September 2023

Gross weekly remuneration: €340

This award is made subject to the Complainant having been in insurable employment under the Social Welfare Acts during the relevant period.

Redundancy – non-attendance by the respondent