
The Bar of Ireland
Orchard Way, Killarney V93Y9W9.
DX: 51010 Killarney
Tel: (087) 4361270
Patrick's legal education is robust, beginning with a BCL Law Degree from University College Cork (2012-2016), followed by an LL.M in Business Law from the same institution (2016-2017), and culminating in a Barrister-at-Law Degree from The Honorable Society of King’s Inns in Dublin (2019-2021). He has extensive experience on the South-West Circuit, handling Civil, Family, and Criminal Law cases, as well as advising the Citizen Advice Service. He has worked as an employment consultant, dealing with workplace investigations and bankruptcy procedures.
Background:
The Complainant, employed as a sales/account executive for a travel technology start-up, joined on 20 September 2021 and was dismissed without notice on 30 May 2023. The stated reason for dismissal was unsatisfactory sales performance related to his clients. However, he claimed that his dismissal was actually due to his clients' lower profitability, which he could not control. He asserted that he was not warned about this issue or any risk of dismissal and that his role also involved analytics and coordinating with outsourced teams beyond his sales duties. Additionally, when the company shifted focus to a new software model related to tipping, he was not offered an opportunity to work on this new direction. The Complainant argued that the Respondent did not follow proper procedures or the statutory code of practice, SI 146 of 2000. He struggled to find employment since his dismissal, and the Respondent declined to provide a written reference.
The Respondent explained that as a start-up reliant on investor funding, the company faced financial pressures due to a reduced investor market in 2023, necessitating layoffs. The Complainant was the first of several employees dismissed, with overall staffing now halved. The Respondent acknowledged that the termination notice could have been clearer but claimed the Complainant was warned in February and March about his job being at risk due to underperformance. The Complainant was required to secure ten new clients monthly but only met this target once, and his clients generated limited revenue. Although the Respondent does not provide written references, they stated willingness to give verbal references.
Finding:
The Adjudicating Officer found that the Complainant’s dismissal was unfair under the Unfair Dismissals Act. The termination letter cited unsatisfactory sales performance, but evidence showed that no formal performance reviews or warnings were provided. Although the Respondent argued that dismissal was necessary due to the Complainant's underperformance, it failed to specify clear grounds, leading to confusion about whether the dismissal was due to individual performance or broader business needs.
The Respondent acknowledged the company's financial struggles and shift in business focus, noting that headcount was reduced by half. However, the Respondent did not follow redundancy or performance procedures or document any performance concerns in writing, which undermined their case. The Complainant presented evidence of diligent job-seeking and argued that the Respondent’s refusal to provide a written reference contributed to his difficulty in securing new employment. The Adjudicator concluded that while financial pressures influenced the Respondent’s decision, these did not justify the dismissal under fair process requirements. Awarding €42,000 in compensation, the Adjudicator noted the Complainant’s annual salary and ongoing job search efforts. The decision emphasised the need for employers to follow fair procedures in dismissals, particularly in situations influenced by business restructuring.
Practical Guidance for Employers:
Employers should:
- Document Performance Issues: Keep detailed records of any performance concerns and formally communicate them to employees through documented reviews or warnings.
- Follow Redundancy and Dismissal Procedures: When restructuring, adhere to redundancy protocols or performance-based dismissal processes to ensure transparency and fairness.
- Provide Clear Grounds for Dismissal: Specify whether dismissals are due to individual performance or business restructuring to avoid ambiguity.
- Offer Opportunities During Business Shifts: When changing business focus, give affected employees a chance to engage with new directions before considering dismissal.
- Support Exiting Employees: Offer written or verbal references, especially if dismissals are due to business changes, to support the employee's future employment prospects.
The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/october/adj-00047459.html
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