Adjudicator upheld complaints; Respondent to pay Complainant €11,012.

The Complainant, a qualified veterinarian from Chile, came to Ireland in 2024 to study English and began working at the salon in November 2024. She stated they agreed on a rate of €18.00 per hour, but her payslips showed payment at €15.00. She worked afternoons Monday to Friday and full days on Saturdays, occasionally on Sundays, including two hours on Christmas Day. She left in January 2025 due to repeated underpayment despite raising the issue. She was told she would recover it from Revenue when leaving Ireland. She claimed she was underpaid for November, December, and January, owed holiday pay, and was denied a share of electronic tips, estimated at €3,000. She alleged breaches of the Payment of Wages Act 1991 and the Tips and Gratuities Act 2022, seeking full payment of outstanding wages and tips.

The Respondent did not provide a written contract, reportedly advising her that this would reduce her taxes. Payslips showed she was paid €15.00 per hour instead of the agreed €18.00, including small sums for tips and “Xmas Commission”. The Respondent did not attend the adjudication hearing or submit any evidence to dispute the Complainant’s claims about unpaid hours, tips, or agreed rate. He also failed to justify the retention of electronic tips, as prohibited under the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022.

The Adjudicating Officer found a breach of section 3(1) of the Terms of Employment (Information) Act 1994. Under section 7(2)(d) of that Act, the adjudicator awarded compensation equivalent to four weeks’ pay based on a 46-hour work week at €18.00 per hour. Under the Payment of Wages Act 1991, it was determined that the Respondent failed to pay €5,103 in wages and €3,000 in tips. After adjusting for PRSI and USC deductions, the Respondent was ordered to pay €7,700 in compensation. The Adjudicator found both complaints well founded and directed the Respondent to pay the Complainant a total of €11,012, free of all deductions.

Employers should:

• Provide written terms of employment to every employee within the statutory timeframe, as required by the Terms of Employment (Information) Act 1994. Verbal agreements or informal arrangements can lead to disputes regarding pay, hours, or conditions. A clear, written contract protects both the employer and employee by outlining expectations, pay rates, and working hours from the outset.       
   
  
•  Accurate and transparent payment practices are also essential. Employers must ensure that all hours worked are properly recorded and paid in full at the agreed rate. Under the Payment of Wages Act 1991, any underpayment or failure to distribute electronic tips can be considered an unlawful deduction, exposing the business to significant financial penalties and reputational damage.    
   
  
• It is also important to comply with the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022, which requires employers to distribute electronic tips fairly among employees. Keeping or withholding tips is prohibited unless the employer performs substantial front-line duties. 
   
  
• Maintain open communication and proper documentation as it helps prevent misunderstandings. Employers should attend hearings and respond to employee complaints promptly. Ignoring claims or failing to present evidence can result in the employee’s version being accepted uncontested, leading to costly awards against the business.

The full case can be found here.