Background:

The Complainant, employed as an Accountant, filed a complaint with the WRC regarding the Respondent’s refusal to grant her flexi leave during her final month of employment, despite her having accrued it beforehand. Additionally, she alleged at the hearing that the public sector pay increase had not been reflected in her final salary payment, resulting in her being underpaid during her last month of work. The Respondent explained that the Complainant was not permitted to take her accrued flexi leave during her final month of employment due to the high workload in the finance department. They also argued that the Complainant had not mentioned the issue of the public sector pay increase in her complaint form to the WRC. They further stated that they became aware of the specific details of the pay increase only after the Complainant had left her employment.

Finding:

The Adjudicating Officer found the Respondent's denial of the Complainant’s accrued flexi leave to be unreasonable, as the employee handbook did not specify restrictions when such leave could be taken. Conversely, they found the failure to apply the public sector pay increase was not unreasonable, as the Respondent only became aware of it after the Complainant’s employment had ended. Given that the employee handbook allowed for banked flexi leave to be carried forward, it created a reasonable expectation for the Complainant that her leave request would be granted. To address the unfair treatment and its impact, it was recommended that the Respondent pay the Complainant €500 in compensation. As this is not an award of wages, the payment was not subject to taxes or deductions.

Practical Guidance for Employers:

Employers should:

• Clearly Define Leave Policies: Ensure employee handbooks clearly outline policies regarding accrued leave, including any restrictions on when it can be taken. Ambiguities in policies may create unrealistic expectations for employees and lead to disputes or claims of unfair treatment.
• Communicate Leave Entitlement and Restrictions: Inform employees of their leave entitlements and any limitations well in advance, particularly during critical work periods. Open communication helps manage expectations and reduces the risk of misunderstandings regarding leave requests.
• Maintain Accurate Records: Keep comprehensive records of all employment-related entitlements, including accrued leave balances and communications about pay adjustments. Accurate documentation ensures transparency and supports the employer’s position in the event of disputes.
• Monitor Pay Adjustments Regularly: Establish procedures to track pay increases, particularly in public sector roles, to ensure timely application of adjustments. This helps avoid claims of underpayment and demonstrates diligence in managing payroll obligations.
• Address Employee Concerns Promptly: Respond to employee complaints promptly and consider alternative solutions to address grievances, such as flexible leave arrangements. Proactive management of workplace disputes fosters better relations and reduces the likelihood of claims being escalated to third-party adjudication.

The full case can be found here: 
https://www.workplacerelations.ie/en/cases/2024/november/ir%20-%20sc%20-%2000002168.html