Skip to main content

Author: Colleen

8 weeks pay award in test case for 750 Debenhams workers for failure to inform and consult in the WRC

The recent decision of the WRC provides useful insights and clarifications into the collective redundancy obligations for employers that arise under the Protection of Employment Act 1977 (“the 1977 Act”), which unions should be alert to when dealing with collective redundancy situations.

Background

The background to this case is well traversed when at the commencement of the Covid pandemic in 2020, Debenhams Retail (Ireland) limited announced it was closing its stores in Ireland. It became quickly apparent that in addition to the closure of the shops and a pending liquidation, that the employer would not be honouring enhanced redundancy packages for long serving staff, which resulted in extended industrial action at the Debenhams premises.

The Law

Section 9 of the Act requires an employer to consult with representatives in “good time” and at least 30 days before the issuing of notice of termination with employees’ representatives. Section 10 of the Act provides that employers must also supply representatives with “relevant information” during the consultation process, to avoid and minimise the effect of any redundancies. A breach of either section may result in an award by the WRC of 4 weeks’ pay for each affected employee.

WRC Complaint

Mandate issued proceedings against 2 respondents, Debenhams Retail (Ireland) Limited and Debenhams Retail (Ireland) Limited in Liquidation as separate respondents, alleging contravention of sections 9 and 10 of the Act, representing 4 claims on behalf of each member. This was litigated on the basis of one main test case together with the logistical feat of lodging over 750 individual claims on behalf of members in the WRC.

Key Decision

The decision represents a detailed analysis of Irish and European law reflecting the legal submissions submitted and exchanged in the course of the hearing, which found that Debenhams as the employer had failed to comply with their consultation obligations under section 9 and 10 of the Act and awarded 8 weeks’ pay for the employee, which will be applied to the 750 claims and ultimately paid out by the liquidator.

Dual Respondents – Debenhams Retail (Ireland) Limited and Debenhams Retail (Ireland) Limited in Liquidation?

The adjudicator found that the legal personality of the employer did not change when the liquidator was appointed and found that there were only 2 valid complaints against one respondent, Debenhams Retail (Ireland) Limited only.

Work/Life Balance

The Work Life Balance and Miscellaneous Provisions Act 2023 was signed into law on 4 April 2023. The overall aim of the Act is to introduce new rights for employees in order to support a better balance of work life, family life and caring responsibilities.

Several of its key provisions including the right to request flexible and remote working arrangements, have yet to be commenced but we have highlighted the key aspect of some of the rights coming shortly down the tracks.

Flexible Working:

The first of the provisions designed to improve employees’ work-life balance is the right to request a ‘flexible working arrangement’ for caring purposes. Such an arrangement is defined as a ‘working arrangement where an employee’s working hours or patterns are adjusted, including through the use of remote working arrangements, flexible working schedules or reduced working hours’. The right to request a flexible working arrangement is currently limited under the Act to parents providing care to a child up to the age of 12 or employees with caring responsibilities in respect of persons specified under the Act including – a spouse or civil partner, a cohabitant, a parent or grandparent, a sibling, and person residing in the same household as the employee. Such persons must be in need of significant care or support for a serious medical condition. It is understood that a review will take place after two years to analyse whether the right to request flexible working arrangements can be extended beyond this scope to all employees.

In order to apply for a flexible working arrangement, employees must have completed 6 months continuous employment with their employer. Requests for a flexible working arrangement must be:

  • Made in writing and signed by the employee;
  • Specify the form of flexible working arrangement required, the date of commencement and duration; and
  • Be submitted to the employer no later than 8 weeks before the commencement of the proposed arrangement.

It is important to note that employers are under an obligation to consider such requests and must approve or refuse the request no later than 4 weeks after receipt. This can be extended to 8 weeks where the employer is having difficulty assessing the viability of the request. Where a request has been refused, the employer must provide reasons for the refusal to the employee.

In circumstances where the employer breaches its obligations to process an employee’s flexible working request in accordance with the Act, the Workplace Relations Commission (“WRC”) can award compensation of up to 20 weeks’ remuneration.

Remote Working:

In a further attempt to support employees’ work/life balance, the Act also provides employees with the right to request a remote working arrangement. It is important to note that the Act does not provide an automatic right to work remotely, but to make a request to their employer which will be considered and responded to within a specified period. In contrast to the provisions surrounding flexible working, there is no service requirement for making a request, however, an approved remote working arrangement cannot commence until an employee has completed 6 months continuous service. Employees must specify the details of the proposed arrangement in their request to the employer, including the reasons for the request and the details of the proposed remote working location.

We are currently awaiting the publication of a Code of Practice from the WRC which will provide further guidance as to the considerations to be taken into account in relation to remote working. However, the Act does provide that employers are obliged to consider the request having regard to both the employer’s needs and the employee’s needs, and also the requirements of the Code of Practice. Similar to the provisions on flexible working, employers must approve or refuse the request within 4 weeks of receipt, which can be extended to 8 weeks where the employer is having difficulty assessing the viability of the request.

The Act also provides employers with the right to terminate the remote working arrangement in certain circumstances. These include where the arrangement is having a substantial adverse effect on the operation of their business, profession, or occupation or where the employer has reasonable grounds to believe the arrangement is being abused by the employee.

Employees can make a claim to the WRC where they are of the view that their employer is not fulfilling their obligations under the Act in relation to the processing of the request. The WRC may make an award of compensation of up to 4 weeks’ remuneration.

Leave for Medical Care Purposes:

The Act aims to further support employees’ work/life balance by providing a new form of leave for medical care purposes. Employees are entitled to 5 days unpaid leave in a 12-month period for the purposes of providing personal care or support to a person specified in the Act. Such persons include a child, spouse or civil partner, a cohabitant, a parent or grandparent, a sibling, and person residing in the same household as the employee. Such persons must require significant care or support for a serious medical reason. Under the Act, employers are entitled to request information from the employee as to their relationship with the person, the nature of the personal care or support required and evidence relating to the need of the person for the significant care or support concerned such as a medical certificate. It is important to note that there is no service requirement to avail of this leave and this section of the Act has commenced as of 3 July 2023.

Key Takeaways:

The 2023 Act certainly represents a significant step towards supporting Irish employees in improving their work/life balance. For employers, it will be important to review internal policies to ensure they are in compliance with the Act. It is hoped the Code of Practice will provide practical guidance for both employers and employees on the handling of flexible and remote working requests.

Podcast: The Do’s and Don’ts of Workplace Investigations:

Listen to the team discuss the dos and don’ts in the life cycle of a workplace investigation as well as what are the components of a good workplace investigation.

The key areas covered in our podcast include:

What to do on receipt of a formal complaint – How to roadmap out the required steps
Advantages and disadvantages of the different types of investigations – internal and external
Errors to avoid in the investigation process
Fundamental aspects of an investigation report

With Colleen Cleary, Regan O’Driscoll and Bernadette Daly