The Workplace Relations Commission ordered Kostal Ireland Gmbh to pay quality auditor Sarah Donohoe €1,403.88 in compensation after finding that pandemic-era wage deductions were unlawful. The decision was dated 19 May 2023.
Donohoe, who had worked for the company for 29 years, said her contract did not allow unpaid lay-off or short time and that she objected to the reduced hours. Kostal cited trading difficulties, pandemic disruption and material shortages, and said its measures aimed to avoid job losses.
The adjudicator found that Donohoe was entitled to her contractual wage, had not consented to the deductions and was not covered by a contractual clause allowing unpaid lay-off. The adjudicator also found the practice was not established custom and practice. The amount is subject to statutory reductions and an agreed reconciliation of jobseekers benefit received, and is less a public holiday payment and a €40 overstatement.