McGuire Haulage Limited’s appeal against a constructive dismissal finding failed, but the Labour Court reduced Desmond O’Farrell’s compensation from €34,680 to €20,000 in a determination dated 11 July 2023.
O’Farrell said he was left without work or wages after being barred from a client site, then resigned. The company said it offered him work in Dublin, which he declined. The Court found the employer had stopped providing work and wages for more than two years and concluded that this undermined the core of the employment contract, leaving O’Farrell no reasonable choice but to resign.
The Court also found O’Farrell’s efforts to find new work inadequate and reduced compensation to reflect his failure to limit his losses. Constructive dismissal means an employee resigns because the employer’s conduct leaves no reasonable alternative. The Court varied the original decision and awarded €20,000.