Background:
The Complainant, with significant experience in food service and IT, began working for the Respondent as a Digital Transformation Specialist on a fixed-term contract from June to August 2021, while pursuing further studies in IT. His role, reporting directly to the CEO, was extended until May 2022, when he became a permanent employee as Head of IT and Procurement, working three days per week on a €50,000 annual salary. The Respondent, operating a garden centre and multiple restaurants, relied on the Complainant for IT installation, maintenance, procurement, stock control, and staff training across five sites. His employment was terminated on 13 January 2024, citing redundancy, and he claims unfair dismissal and various breaches of employment rights.

The Complainant alleged he was never provided with an updated contract reflecting his permanent role or notified of changes to his terms of employment. He claimed his duties increased significantly after becoming Head of IT, but his contracts were not updated due to the departure of the HR Manager. While awaiting an updated contract, the CFO unilaterally placed him on short-time working for eight weeks in late 2023, reducing him to one working day per week without pay for the remaining days, citing financial difficulties. This was followed by his redundancy without statutory redundancy payment, pay in lieu of annual leave, or minimum notice. He also highlighted that the contract provided in December 2023 contained errors and omitted his agreed terms.

The Respondent did not attend at either hearing to proffer any evidence in rebuttal of this complaint.

Finding:

The Adjudicating Officer found:

• Complaint under Section 5 of the Terms of Employment (Information) Act 1994

The Adjudicating Officer found that the Respondent failed to notify the Complainant in writing of changes to his terms of employment, breaching Section 5 of the Act. This failure disadvantaged the Complainant in enforcing his employment rights. As redress, the Officer awarded the Complainant the maximum compensation of €3,848, equivalent to four weeks' remuneration.

• Complaint under Section 6 of the Payment of Wages Act 1996

The Respondent unilaterally reduced the Complainant’s wages by 67% without prior written consent or contractual justification, in breach of Section 5 of the Act. The Officer also found that the Respondent failed to pay the Complainant his statutory notice entitlement. The Complainant was awarded €12,000 in compensation, including €10,720 for unpaid wages and €1,280 for damages due to the unlawful deductions.

• Complaint under Section 8 of the Unfair Dismissals Act 1977

The Respondent failed to demonstrate that the dismissal was substantively or procedurally fair, as no genuine redundancy process was followed. The Adjudicating Officer determined the dismissal to be both procedurally and substantially unfair. Considering the Complainant’s mitigation efforts and anticipated re-employment, the Officer awarded €50,000 in compensation, representing one year’s remuneration.

• Complaint under Section 27 of the Organisation of Working Time Act 1997

The Respondent failed to pay the Complainant €10,840 in accrued annual leave entitlement upon termination. The Officer awarded €12,000 in total compensation, including €10,840 for unpaid leave and €1,160 as additional compensation.

The Adjudicating Officer directed the Respondent to pay the Complainant a total of €77,848 in compensation across all complaints.

Practical Guidance for Employers:

• Employers must provide employees with up-to-date written contracts that accurately reflect their roles, terms, and conditions, in compliance with the Terms of Employment (Information) Act 1994. Ensure any changes are communicated in writing before they take effect.
• Any reduction in wages or changes to working conditions must be contractually authorised or have the employee’s prior written consent, as required by the Payment of Wages Act 1996.
• Employers must follow fair and transparent redundancy procedures, including providing justification, consulting with employees, and applying clear selection criteria, in accordance with the Unfair Dismissals Act 1977.
• Ensure accurate calculation and payment of annual leave entitlements or compensation in lieu of leave upon termination, as mandated by the Organisation of Working Time Act 1997.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/november/adj-00051206.html