The Labour Court reduced an award against County Tipperary Chamber Of Commerce to €7,796.38 after finding that it unlawfully deducted wages from former chief executive David Shanahan during part of his suspension. The Court varied the adjudication officer’s earlier €12,854.80 award in a determination dated 26 October 2022.
Shanahan, who earned €35,000 a year, was suspended on full pay while an internal investigation was pending. The Chamber placed him on lay-off during the Covid-19 pandemic and later paid him €350 gross a week under the wage subsidy scheme. He argued he remained entitled to his full contractual pay; the Chamber relied on a contract clause allowing unpaid lay-off.
The Court found the contract allowed unpaid lay-off from 23 March to 17 May 2020, so no unlawful deduction occurred then. From 18 May, Shanahan was suspended pending the investigation and entitled to his contractual weekly pay of €673.60 gross. The €350 weekly payments fell short, and the Court directed the Chamber to pay €7,796.38 compensation for the unlawful deductions.