Background:

The Complainant stated his contract of employment provided for a 3 months’ notice period.  The Complainant gave notice to his employer and communicated his intention to work his full notice period on or about the 1st of March 2022. Mr Roche alleged his employer ceased paying him on or about the 31st of March 2022.

A dispute existed between the parties concerning whether the Complainant had resigned; refused to work on a specific project or had been dismissed for failing to work on that project and had waived his right to work 3 months’ notice. In the absence of any oral evidence by the Respondent, the Adjudication Officer determined the Complainant was entitled to work his notice period of 3 months.

The contract clause relied upon by the Complainant stated:

“In the event of termination of your employment, you are required to give the Company, and the Company undertakes to give you three months’ notice in writing or such longer period as may be required by law. The Company reserves the right at its discretion to pay you in lieu of notice or place you on Garden Leave for some or all of your notice period”

The Complainant also stated during the first months of Covid lockdown his employer reduced his salary by 25% and had communicated to him and others that it was their intention to repay the loss at a point in the future. This period of payroll deduction took place from about April 2020 until August 2020. The employer made a promise to repay the deduction initially after a 6-month period and then reframed that promise to a time when they could repay.

The Respondent failed to attend the hearing. The Adjudication Officer held in the absence of any oral evidence by the Respondent and based on the facts there was no agreement between the parties for making this deduction and no consent in writing from the Complainant, he was entitled to work his notice period of 3 months.

Outcome:

The Adjudication Officer determined 2 months’ salary was unlawfully deducted and the Respondent was to pay the Complainant two months’ wages €2, 916.66 (gross monthly salary) less any statutory deductions. The total compensation amounted to €5,833.32.

Practical Guidance for Employers:

Section 5 of the Payment of Wages Act 1991 states an employer shall not make a deduction from the wages of an employee (or receive any payment from an employee) unless  the deduction (or payment) is required or authorised to be made by any statute or any instrument made under statute, or, the deduction (or payment) is required or authorised to be made by a term of the employee's contract of employment included in the contract before, and in force at the time of, the deduction or payment.

The full case is available here:
https://www.workplacerelations.ie/en/cases/2022/november/adj-00038950.html