The High Court found Irish Packaging Recycling Limited in breach of contract when it terminated Gary Treacy’s employment without the six months’ notice provided for by his contract. The court adjourned the proceedings to 22 February 2013 to allow the parties to address the amount of damages; it did not make a final order for a specified sum in this judgment.
Treacy had worked within the Greyhound group since September 2008. A contract issued in August 2011, when his employer changed to another Greyhound group company, stated that his earlier service counted as continuous employment and that he had successfully completed probation. It also included probationary notice terms that the judge described as inconsistent with other provisions. Treacy’s role was Recyclables Manager, based at the Materials Recovery Facility in Ballymount, Dublin 24.
When Irish Packaging Recycling took over operation of the facility in January 2012, 77 Greyhound employees, including Treacy, transferred to the company under the Transfer of Undertakings Regulations. The company told Treacy later that month that his role was redundant and terminated his employment with immediate effect, offering one month’s notice pay. Treacy claimed his contract entitled him to six months’ notice.
Justice Laffoy found that the parties did not intend Treacy to be on probation from August 2011 to January 2012. She relied on his prior service, the contract’s recognition of continuous employment and its statement that probation had been completed. The court held that Treacy was entitled to at least six months’ written notice. Because the company did not give that notice, it was liable for wrongful dismissal.
For damages, the judge accepted a gross monthly salary of €6,416.67 for six months, a €5,000 loyalty bonus and a €2,700 performance bonus. She also allowed a €5,100 car allowance. She rejected the claimed food allowance because the contract did not provide for one and the claim was not supported by receipts. The judge found no failure by Treacy to mitigate his loss. She directed the company to calculate and pay the net remuneration amount after usual deductions within three weeks, and to address any tax implications of the car allowance within that period.
The court did not determine whether making Treacy redundant was valid, or decide claims under redundancy or unfair-dismissal legislation. Those matters were outside the scope of the common-law wrongful-dismissal proceedings before it. If the parties could not agree the damages figure, the court said it could give judgment for the appropriate amount after submissions at the adjourned hearing.