Background:
The Complainant commenced employment as a driver with the Respondent on 10 December 2022, working 39 hours per week and earning €729.19 gross per week. In June 2023, the Complainant applied for two weeks of annual leave, starting from 4 June 2023. He did not receive his holiday pay in advance, preventing him from proceeding with his planned travel. He requested to reset his annual leave, but this was denied, with the Respondent stating their policy was to pay wages, including holiday pay, on a back week basis. The Complainant argued this violated Section 20(2) of the Organisation of Working Time Act, 1997, and related regulations. He sought compensation for non-compliance. Additionally, he raised concerns about the calculation of holiday pay, which has since been rectified. The Complainant referenced the ADJ-00026200 case, which involved a similar breach, to support his claim for compensation.

The Respondent acknowledged that when the Complainant requested annual leave in June 2023, the company's policy at the time was to pay all employees, including holiday pay, on a back week basis, which breached Section 20(2) of the Organisation of Working Time Act, 1997. However, the Respondent had since reached a collective agreement with the trade union, allowing employees to receive holiday pay in advance upon request. The Respondent confirmed that the Complainant took his leave as planned and continued receiving weekly payments during that period, with no financial loss or detriment suffered. The Respondent’s payroll system calculated holiday pay based on an average of the employee’s previous 13 weeks, as outlined in the Complainant’s contract. A discrepancy involving the omission of a €16.08 daily "Depot Payment" from holiday pay calculations was identified and had been corrected.

Finding:
The Adjudicating Officer found the complaint well founded and ordered the Respondent to pay the Complainant compensation in the sum of €1,500. This was based on the premise that relevant section in the Act does not stipulate that there is a requirement for a Complainant to show that there was a detriment; merely non-compliance.

Practical Guidance for Employers:

Employers should note that:

• the Organisation of Working Time Act 1977 provides that the employees (or their trade unions) are consulted at least one month in advance of the dates selected by an employer for annual leave. Otherwise, consideration must be given to the employee’s requested dates.
• The employee’s annual leave must be taken within the leave year to which it relates or, with the employee’s consent, within 6 months of the next leave year. Where the employee is, due to certified absence due to illness, unable to take all or part of the leave, that leave may be taken within 15 months of the end of that leave year
• Pay for the annual leave must be calculated at the normal weekly rate and paid in advance of the holiday period.
• Where an employee ceases to be employed and annual leave remains to be taken, the employee should receive compensation for the loss of any untaken leave calculated at the normal weekly pay rate or at a rate proportionate to the normal weekly pay rate that he/she would have received had he/she been granted that leave.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/june/adj-00050722.htm