The WRC found that the employer unlawfully deducted wages by failing to pay five months’ salary owed to the Sales Executive, in breach of the Payment of Wages Act 1991.

The Complainant worked as a Sales Account Executive for a technology company from April 2023 until his resignation in August 2024. His annual salary was €75,000 plus commission. Starting November 2023, the company began missing wage payments, resulting in significant underpayment for most of 2024. Despite receiving some back pay in April, he remained owed five months’ wages totalling €27,429 (net). Throughout 2024, senior executives repeatedly acknowledged the debt in emails and WhatsApp messages, promising payment following expected funding. Despite these promises, no payment materialised. After exhausting internal efforts, the Complainant submitted a claim to the WRC, alleging unlawful wage deductions under s.5(6) of the Payment of Wages Act 1991. The employer did not attend the hearing, and the case proceeded based solely on the Complainant’s evidence.

The Adjudicating Officer found that the Respondent unlawfully deducted the Complainant’s wages, contrary to s.5(6) of the Payment of Wages Act 1991. The Complainant provided clear evidence that €27,429 in net wages was properly payable and due by late August 2024. The Respondent, through multiple communications, admitted the debt but failed to make payment. The Adjudicating Officer noted the regrettable stress and effort the Complainant had to endure to pursue his basic right to be paid. The complaint was upheld, and under s.6 of the Act, the Respondent was directed to pay the outstanding €27,429 in wages.

Employers must recognise that timely payment of wages is not optional but a fundamental legal obligation under the Payment of Wages Act 1991. Failure to pay wages on time can expose the business to formal complaints, legal costs, and compensation orders, regardless of any financial difficulties the company may be experiencing.

If a business anticipates cash flow problems, clear, honest, and documented communication with employees is essential. Empty promises or ignoring wage arrears can damage trust. Any delay in payment should be agreed in writing with the employee where possible, though this does not remove the employer’s legal liability. Also, employers should also ensure proper records are maintained, including payslips, payment schedules, and all correspondence relating to wage payments. At any future WRC hearing, failure to produce documentation or engage with the process will weigh heavily against the employer. Finally, businesses must take WRC proceedings seriously. Attendance at hearings with appropriate witnesses is critical. Non-attendance and casual disregard for the process, as seen in this case, signals a lack of respect for both the employee and the adjudication process, significantly increasing the likelihood of a costly outcome.

The full case can be found here.