MHC note on wages for departing workers
A note from Mason Hayes and Curran (MHC) points out that under Irish law, employers must pay all wages "properly payable" to an employee upon the termination of their employment.
Failing to pay owed wages, or making a deduction without the employee's prior written consent, is classified as an unlawful deduction, the lawyers point out.
This includes base salary, earned bonuses, commissions, and any other payments related to the employment contract.
Employees are also entitled to be paid for any annual leave they have accrued but not taken up to the date of termination.
If an employer terminates a contract without requiring the employee to work their notice period, they must pay the employee in lieu of notice (PILON), provided the contract or statute (Minimum Notice and Terms of Employment Acts) allows for it.
Employees who have worked or were scheduled to work on public holidays prior to termination must be compensated according to statutory rates.
The Workplace Relations Commission (WRC) can award an employee up to a maximum of their net wages for a successful claim, the MHC lawyers state.
If the amount of the deduction or non-payment exceeds the employee's net wages, the WRC has the authority to award twice the amount of the deduction.
The employee must prove that the money claimed was "properly payable."
Claims must be "particularised" with specific evidence and calculations.
Precedent cases
In a recent case (Andrés Martínez Cuquerella v 5 Star Stay Ltd (House of Padel)) A coach was awarded €1,876 for unpaid wages, public holiday pay, annual leave, and two weeks’ notice pay after a summary dismissal.
Also, in Katie Sheehan v Tg Sport Horses: A yard worker was awarded €280 for a partial withholding of her final salary.
Claims for notice pay and extra annual leave were rejected because the employee had only six weeks of service and failed to provide specific evidence for the leave.
To reduce WRC claims, MHC cautions that sports clubs and businesses should consider the following:
- Ensure payroll and employee records are accurate as this information will be used to process final payments made to an employee,
- Check contractual notice period and if applicable comply with pay in lieu of notice terms,
- Calculate accrued but untaken annual leave up to the termination date to ensure there is not an underpayment,
- Review working time records as employees in this sector may work public holidays and/or Sundays and should be paid accordingly,
- To reduce the risk of disputes or claims, employers should ensure that the final payslip contains total wages owed to an employee.