Background:

The Complainant was employed as a Station Master and had worked in the Respondent’s booking office on a rostered basis for 25 years. The Complainant retired in January 2022. It was the Complainant’s evidence that the Respondent failed to pay him loss of earnings following a Labour Court Recommendation made on 15th November 2021.

The Complainant submitted the payment was due to the closure of booking offices, which was initially due to the Covid-19 pandemic in March 2020 and subsequently, following a business review, the Respondent decided to close the booking offices permanently.

The Complainant sought payment of €10,000 which was an amount similar to that received by his colleagues, following agreement with the Trade Union that Station Masters should be included in payment for loss of earnings. The Complainant stated he should have received the payment on the 24th December 2021.The Respondent gave evidence that the payment was for loss of future earnings and as the Complainant had retired in January 2022, he was not entitled to the payment. The Adjudication Officer noted that a colleague of the Complainant did receive the payment as per the correspondence between the Complainant’s Trade Union and the Respondent, dated 16th February 2022 and 10th March 2022.

The Respondent produced a letter, dated 30th July 2009, which contained a reference period as to how such payments were calculated. The Complainant submitted that the formula outlined in the letter did not stipulate for future but actual loss of earnings.

The Adjudication Officer found that the complaint was well founded on the basis that the payment was directly related to the closing of the booking office, initially due to the Covid-19 pandemic in April 2020, and subsequently following a financial review. The Adjudication Officer submitted that there was nothing to suggest it was limited to future losses.

The Complainant accepted the uncontested evidence of the Complainant that he would have worked 32 Sundays and 4 public holidays during the period from April 2020 to January 2021 and awarded the Complainant the compensatory sum of €5,000 as being fair and reasonable to cover his period of actual loss of overtime only.

Outcome:

The Complainant was awarded the sum of €5,000 in compensation. The Respondent had breached the Payment of Wages Act by failing to pay the Complainant overtime which was owed to the Complainant.

Practical Guidance for Employers:

Where an Employer has unlawfully deducted wages from an employee, and a complaint is submitted that is proven to be well-founded, the WRC may order the Employer to pay to the employee compensation of such amount they think is reasonable in the circumstances.

The full case is here:
https://www.workplacerelations.ie/en/cases/2023/february/adj-00039247.html