The Complainant had been employed by the Respondent on the 19th of April 2017 as an Apprentice. In December 2019, the Complainant transferred to a different employer and the Respondent, in due course went into liquidation in February 2020. The Complainant claimed that he was entitled to a redundancy payment.

The Complainant stated that his transfer to the second employer was by way of a loan, or temporary arrangement. The Complainant stated that in early December 2019, he sought and received confirmation of this from a company director.

The Respondent submitted that the Complainant was legally and formally transferred to the second employer.

The Adjudication Officer highlighted that the complaint in this case turns on the status of the Complainant as an employee of the Respondent. The representative of the liquidator submitted that he had been ‘formally and legally transferred’ to the second company.

The Adjudication Officer noted that the idea of employees, other than professional soccer players, being sent on loan to another employer is an unusual one and that therefore, the critical question is whether the Complainant’s contract of employment with the Respondent was terminated by this transfer or not. The intentions of the parties are critical on that point.

The Adjudication Officer noted that neither the Complainant nor the Respondent were in any doubt that he was and would continue to be an employee of the Respondent.

Accordingly, he is entitled to a payment under the Redundancy Payments Acts based on his service with the Respondent between April 19th 2017 and February 17th 2020.
https://www.workplacerelations.ie/en/cases/2021/may/adj-00029367.html