1. Introduction

Time limits are central to the strategy of any Payment of Wages complaint. Section 41 of the Workplace Relations Act 2015 imposes a six-month time limit for the referral of a complaint, with a possible extension to twelve months on the showing of reasonable cause.

This article considers the calculation of the cognisable period, the rule against “rolling deductions”, the test for reasonable cause, and the strategic considerations for complainants.

2. Legislation and Case Law

Section 41(6) of the Workplace Relations Act 2015 provides that a complaint must be presented within six months of the date of the contravention to which the complaint relates.

Section 41(8) permits the WRC to extend the time limit by a further six months (to twelve months in total) where the complainant shows reasonable cause for the delay.

In Health Service Executive v McDermott [2014] IEHC 331, the High Court (Hogan J.) considered the rule against rolling deductions. The Court held that each periodic deduction gives rise to a separate cause of action, and a complaint can only relate to deductions within the six-month cognisable period.

The test for reasonable cause was articulated by the Labour Court in Cementation Skanska v Carroll DWT0338. The Court identified factors including the explanation for the delay, the conduct of the employer, and the consequences for the respondent of allowing the late complaint. 

3. Decision

The WRC will count back six months from the date of complaint to identify the cognisable period. Deductions outside that period are not recoverable, even if they form part of a continuing pattern.

Where the complainant seeks an extension under Section 41(8), they must establish that there was a reasonable cause for the delay. Personal stress, lack of legal advice and ongoing internal grievance procedures have been considered, with mixed outcomes.

The McDermott principle means that complainants should not delay in lodging a complaint, as each pay period that passes is lost from the recoverable amount.

4. Takeaway

Employees should lodge a complaint promptly, ideally within six months of the first unlawful deduction. Where there is ongoing dispute, the use of without-prejudice correspondence and internal grievance procedures should not be allowed to consume the six-month period.

Employers can rely on the cognisable period rule to limit exposure, but should not assume that historic underpayments are forgiven. A new deduction in the cognisable period revives the analysis, and continuing patterns of conduct may attract WRC criticism even if not directly recoverable.

5. Further information

This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.

6. About Crushell & Co

Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.

We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.

Connect: @CrushellLaw or www.crushell.ie