Background:
The Complainant was employed by the Respondent, a Representative & Consultancy Organisation, as an Admin/Communications/Project Officer. Her employment began on July 1, 2023, and ended either on December 3 or December 20, 2023, a point of contention. She held two simultaneous positions: one as an Office Administrator under a standard contract, and the other as a Consultant under a consultancy contract, with the latter being the focus of her complaint. As an Office Administrator, she worked 21 hours per week with an annual salary of €16,000, which did not give rise to any complaints. However, as a Consultant, she worked two days a week at a rate of €17 per hour. She stated that she was verbally instructed by the CEO to invoice €1,250 monthly for her consultancy work, which she did without issue until December 2023. In December, she did not receive her payment and claimed €1,250 as the outstanding amount for her consultancy work. The Complainant argued that the CEO reneged on the verbal agreement after she submitted her resignation in December 2023.

The Respondent challenged the Complainant's claim. They presented an analysis of the days worked by the Complainant, highlighting significant overlaps between her two roles. The Respondents argued that during the period in question, the Complainant charged for consultancy work during times when she was supposed to be performing her administrative duties. Records were provided indicating that this overlap resulted in a shortfall or overpayment of €1,847. Based on this analysis, the Respondents withheld payment of the Complainant's December consultancy invoice, arguing that the claimed amount constituted an overpayment. They contended that this amount was not "wages properly payable" under Section 5 of the Payment of Wages Act 1991, and therefore, they were justified in withholding the payment.

Finding:
The Adjudicating Officer found discrepancy regarding thee professional relationship and salary arrangements. The Respondent provided consistent and professional testimony, asserting that a verbal agreement, as claimed by the Complainant, was implausible due to the institution’s exemplary standards. The Complainant, however, under oath, asserted her actions were regular and monitored by the CEO, contesting any claims of dishonesty and addressing issues related to sick leave and attendance at a Staff Christmas party. The evidence revealed that while the Respondent argued the Complainant was only legitimately working as a consultant on December 12, the Complainant claimed she followed CEO instructions and invoiced for €1,250 as per previous arrangements. The Respondent denied this arrangement, leading to a conflict of testimony. According to Section 5 of the relevant Act, recovery of overpaid wages is allowed, but deductions must be fair and reasonable.

The Adjudicating Officer decided in favour of the Respondent. However, recognising the need for fairness, awarded the Complainant €500 as a reasonable settlement. This aligns with the Act’s provision for a "Part Well Founded" outcome.

Practical Guidance for Employers:
Employers should:

• Regularly review and clearly define employment contracts, especially for roles with multiple responsibilities or positions.
• Document any verbal agreements and ensure they align with written contracts, maintaining clarity and avoiding misunderstandings.
• Establish clear communication channels between employees, supervisors, and HR to address any discrepancies or concerns regarding payment or work responsibilities.
• Conduct regular reviews of employee work hours, duties, and billing to ensure accuracy and fairness in payment and invoicing.
• Seek legal advice and follow fair employment practices when considering withholding wages or making deductions, ensuring compliance with employment law.
• Maintain accurate and detailed records of employee work hours, tasks performed, and any relevant communications regarding payment or contractual agreements.
• Provide training and guidance for supervisors and managers to ensure consistency in enforcing company policies and handling employment disputes.

It's important for employers to consider these points as part of their ongoing efforts to maintain fairness and transparency in their employment practices.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/july/adj-00049830.html