WRC Awards Four Weeks’ Pay For Gaps in Employment Contract

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In a recent decision of the Workplace Relations Commission (“WRC”) in Linda Moran v English By Design Limited..

In a recent decision of the Workplace Relations Commission (“WRC”) in Linda Moran v English By Design Limited ADJ-00044292, the Complainant alleged breaches of the Terms of Employment (Information) Act 1994 (as amended), (“the Act”) in relation to her Contract of Employment, which was not contested by the Respondent.

Facts: The Complainant was employed as an Academic Coordinator and English teacher from 3rd January 2022. The Complainant was furnished with the most recent contract of employment dated 12th December 2022, which she submitted was not in compliance with the Act.

It was submitted that the Contract failed to comply with the following provisions of the Act:

    • The Contract did not contain the address of the employer;
    • The Contract did not contain a clause stating that an employee may, under Section 23 of the National Minimum Wage Act 2000 request from the employer a written statement of the employees’ average hourly rate of pay for any pay reference period;
    • The Contract did not set out any information in relation to pension and pension schemes.

The Liquidator appointed for the Respondent Company appeared on behalf of the Respondent and conceded to the claim made by the Complainant.

Decision: The Adjudicator, Niamh O’Carroll, found that the complaint was well founded based on the Complainant’s evidence. On that basis, the Adjudicator awarded four weeks salary of €2,520.00 to the Complainant which is the maximum award in such claims.

Takeaway for Employers:

Imposition of the maximum award in this case is somewhat surprising given that there had been an attempt to comply with the Act in that a contract of employment had been put in place albeit that some (arguably relatively minor) terms were omitted. However, it is noteworthy that the claim was conceded by the Liquidator. It is possible that if the case had been a fully defended case the award may have been lower.

Nonetheless, this decision highlights the importance of ensuring that employment contracts cover off all the requirements outlined under the Act. Failure to do so could prove costly for employers.

For example, if an employer has been using the same template to prepare all of its contracts of employments and that template itself does not include all of the terms required under legislation, this could theoretically result in a claim for up to four weeks pay by each of that employer’s employees.

Employers should review their contracts of employment to ensure they are fully compliant with the Act and contain all required clauses.

Recent legislative updates in the form of the Employment Law (Miscellaneous Provisions) Act 2018 and the European Union (Transparent and Predictable Working Conditions) Regulations 2022 have changed the requirements in this area making it all the more timely for employers to conduct a review.

An employee is entitled to a statement in writing of the core terms of their employment within the first 5 days, with the remaining terms being provided within one month of commencement of employment. Employers need to be aware of the time limits and the terms which must be provided to employees within those time limits.

Link https://www.workplacerelations.ie/wrc/en/cases/2024/june/adj-00044292.html


Authors – Ethna Dillon and Laura Killelea

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