Final Pay and Termination Settlements under the Payment of Wages Act 1991
1. Introduction The final pay calculation on termination of employment commonly gives rise to disputes. Outstanding salary, accrued but untaken annual leave, pay in lieu of notice, deferred bonus and commission, and benefit-in-kind reconciliations all fall within the definition of wages under the Payment of Wages Act 1991. This article considers the principal elements of
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Working Time and Holiday Pay Calculations
1. Introduction The calculation of holiday pay has been the subject of extensive litigation in both Ireland and the Court of Justice. Holiday pay must reflect the worker’s normal remuneration, including components such as overtime and shift premiums that are intrinsically linked to the performance of the worker’s tasks. In Stefan v The Mater Misericordiae
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Working Time and Cessation Payments
1. Introduction Section 23 of the Organisation of Working Time Act 1997 provides for payment in lieu of accrued but untaken annual leave on cessation of employment. The calculation must reflect the worker’s normal remuneration and the full period of accrual. In Cuffe v St Vincent’s University Hospital the WRC awarded €2,627 for unpaid annual
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National Minimum Wage and Sub-Minimum Rates
1. Introduction Section 14 of the National Minimum Wage Act 2000 provides for sub-minimum rates of pay for younger workers. The provision recognises that, in certain circumstances, the full national minimum wage may be inappropriate, while ensuring that a substantial floor remains in place. This article addresses the Section 14 framework, the categories of workers
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Employment Equality and Equal Pay
1. Introduction Equal pay claims under the Employment Equality Acts 1998 to 2015 require the complainant to demonstrate that they perform “like work” with a comparator of a different gender (under Section 19) or other protected characteristic (under Section 29), and that they receive less remuneration for that work. Equal pay is one of the
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Changes to Terms of Employment and Rate of Pay
1. Introduction The case of Dermot Flanagan v Dublin Bus (ADJ00046729) examines the circumstances under which changes to the terms and conditions of employment, impacting pay, will ordinarily be enforceable. Mr Flanagan (the Complainant) brought a complaint under Section 27 of the Organisation of Working Time Act, 1997 against Dublin Bus (the Respondent) to the
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Payment in Lieu of Notice during Probation
Background The case of Eric Bentley v Carcharger EV Limited (ADJ00050468) examines the circumstances under which an employee will be entitled to a payment in lieu of notice if dismissed during their probationary period. This is a very interesting case, as it was brought under the payment of wages provisions, but decided upon under notice
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Statutory v Company Sick Pay Schemes
Introduction The Sick Leave Act 2022, in effect since 1 January 2023, grants employees in Ireland the right to statutory sick pay (SSP) for the first time. An employee who has completed 13 weeks of continuous service is entitled to up to three days per year, provided they provide their employer with a medical certificate
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Suspension Without Pay as a Disciplinary Sanction
Introduction In Joseph Kelly v KDK Scaffolding Limited (ADJ-00037787), it was held that the imposition of one day’s suspension without pay, without any authorisation provided for in the contract or company handbook, amounted to a breach of Section 5 of the Payment of Wages Act, 1991. Background The respondent admitted that the Complainant was not
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Irish Law on Unpaid Internships – Establishing an Employment Relationship
Introduction – Internships and the Law A legal intern (Vladlena Soltan) recently brought a case against a law firm (Shannons Solicitors) alleging various infringements of her employment law rights. The claims brought against the law firm included a complaint seeking adjudication under Section 7 of the Terms of Employment (Information) Act, 1994 (TOEA), under Section
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