Labour Court sets out options in Irish Ferries Limited allowance dispute

In 2004, the Labour Court recommended three possible settlements in a dispute between Irish Ferries Limited and the Services Industrial Professional Technical Union over tax deductions from out-of-hours travel allowances. The recommendation, dated 20 September 2004, followed Revenue requiring PAYE and PRSI deductions from the allowances. The union said a 1993 agreement provided for net payments and argued the company should cover the tax or increase the allowances. The company said it had to apply the benefit-in-kind rules and offered options including a buyout or continued payments through payroll or AVCs. The Court recommended that each worker choose between the buyout formula used for five Dublin employees, retaining payments in a tax-efficient way if feasible, or keeping gross payments with compensation for resulting losses to be discussed.