The Balans Framework under Section 5 of the Payment of Wages Act 1991
1. Introduction The Supreme Court decision in Marek Balans v Tesco Ireland Limited [2020] IESC 71 transformed the analysis of Payment of Wages complaints. The Court held that the threshold question in every case is what wages were “properly payable” to the employee. Only after that question is answered can the WRC determine whether there
Read MoreUnilateral Variation of Pay under the Payment of Wages Act 1991
1. Introduction A reduction in pay imposed unilaterally by an employer, without the consent of the employee, may amount to an unlawful deduction under Section 5 of the Payment of Wages Act 1991. The question is whether the reduction is authorised by statute, by the contract, or by the prior written consent of the employee.
Read MoreThe Six-Month Time Limit under Section 41 of the Workplace Relations Act 2015
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
Read MoreStatutory Sick Pay under the Sick Leave Act 2022 and the Payment of Wages Act 1991
1. Introduction The Sick Leave Act 2022 introduced a statutory right to paid sick leave for employees in Ireland, beginning with three days in 2023 and increasing incrementally. Statutory sick pay constitutes “wages” for the purposes of the Payment of Wages Act 1991, with the result that any unpaid entitlement may be pursued under Section
Read MorePayment of Wages and Holiday Pay
1. Introduction Holiday pay falls within the definition of “wages” under the Payment of Wages Act 1991 and may be the subject of a Section 5 complaint. While the substantive entitlement to annual leave arises under the Organisation of Working Time Act 1997, the failure to pay holiday pay that is properly payable engages the
Read MorePayment of Wages and Discretionary Bonuses
1. Introduction Discretionary bonuses occupy a contested space in Irish employment law. A bonus that is described as discretionary in the contract may nonetheless become “properly payable” under Section 5 of the Payment of Wages Act 1991 if the employer has fettered its discretion through consistent practice or contractual representation. In Vithaldas v UCC Academy
Read MorePayment of Wages and Commission
1. Introduction Commission is a frequent source of Payment of Wages complaints. Commission schemes vary widely in their terms: some are wholly discretionary, others are payable on completion of defined milestones, and many are subject to claw-back or forfeiture clauses on termination. This article considers how the WRC analyses commission disputes, applying the Balans framework,
Read MoreOutstanding Wages on Employer Insolvency under the Protection of Employees (Employers’ Insolvency) Act 1984
1. Introduction Where an employer becomes insolvent, employees may face the loss of unpaid wages, holiday pay, statutory minimum notice and other entitlements. The Protection of Employees (Employers’ Insolvency) Act 1984, as amended, establishes a statutory scheme through which the Social Insurance Fund will, in certain circumstances, pay arrears owed by an insolvent employer. This
Read MoreNotice Pay Disputes under The Payment of Wages Act 1991
1. Introduction Notice pay is a frequent subject of Payment of Wages complaints. Where an employee is dismissed without proper notice, or where pay in lieu of notice is not paid in full, the employee may bring a complaint under Section 5 of the 1991 Act in addition to any complaint under the Minimum Notice
Read MoreFinal 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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