Complainant: Gheorghe Toader

Respondent: The Historic Flooring Company Ltd

Complainant successfully claimed constructive dismissal after enduring chronic wage delays, lack of a written contract, and no grievance procedure.

The Complainant, a Carpenter, worked for the Respondent from November 2014 to February 2023. Throughout his employment, his wages were frequently delayed, sometimes by several weeks. In January 2023, after experiencing a four-week delay and being owed €3,043, he formally requested payment, warning that failure to pay would result in a WRC complaint or resignation. When only a partial payment was received by February 15, 2023, he resigned, believing that delays would persist. The remaining balance was paid by February 20, 2023. The Respondent later offered training and suggested a return to work, but the Complainant declined, awaiting the WRC decision. Miscommunication led him to believe he could not work while his case was ongoing, causing 13 weeks of unemployment before securing a similar job. The Complainant sought compensation for financial loss during unemployment.

The Respondent confirmed the company, a small timber salvage business with 3-4 employees, lacked HR personnel and had never provided the Complainant with written employment terms, grievance procedures, or a contract until after his resignation. Following a WRC workplace investigation, he issued the required documents in May 2023. He attributed wage delays to cash flow issues following COVID-19 market volatility, stating that withholding wages was a short-term measure discussed with staff.  The Respondent found the resignation abrupt and unreasonable, claiming he made multiple efforts to retain the Complainant, including visits to his home, letters, and a forklift training offer. However, he admitted his treatment of the Complainant was “wrong”, acknowledging wages were late 20% of the time but maintained that the Complainant resigned too quickly.

The Adjudicator found the Complainant successfully argued a claim of constructive dismissal under the Unfair Dismissals Act 1977, proving that the Respondent's repeated failure to pay wages on time constituted a fundamental breach of contract. The timely payment of wages is an essential term of employment, and by delaying payment 20% of the time over eight years, the Respondent demonstrated a failure to uphold contractual obligations. The absence of a written contract or grievance procedure further compounded the issue, leaving the Complainant without a formal avenue to resolve his concerns.

Despite warning the Respondent in January 2023 and awaiting resolution, the Complainant resigned on February 15, 2023, believing the pattern of delayed payments would continue. The Adjudicator found that the Complainant met the contract test for constructive dismissal and awarded €9,945, equivalent to 13 weeks’ lost wages, recognising the Complainant’s diligence in seeking new employment. The Respondent’s attempts to retain him post-resignation were deemed insincere, and their handling of the situation lacked credibility.

Employers should:

Ensure Timely Wage Payments: Delayed wage payments can constitute a fundamental breach of contract, leading to constructive dismissal claims. Employers should prioritise payroll reliability and explore alternatives, such as temporary layoffs or structured payment plans, during financial difficulties. Transparent communication and documented agreements with employees are crucial to maintaining trust.

Provide Written Employment Contracts and Grievance Procedures: Employers are legally required to provide employees with written terms of employment under the Terms of Employment (Information) Act 1994. A clear grievance procedure helps address disputes internally, reducing the risk of legal action. Delays in implementing these documents can weaken an employer’s defence in a dispute.

Handle Workplace Disputes Professionally and Proactively: When an employee raises a complaint, it should be taken seriously and addressed promptly. Offering training or return-to-work discussions after a resignation does not rectify previous contractual breaches. Employers should seek HR or legal advice to manage disputes and avoid costly legal consequences.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2025/january/adj-00050566.html