Industrial Tribunals Northern Ireland Decisions

 
THE INDUSTRIAL TRIBUNALS

CASE REF: 480/07

CLAIMANT: Stephanie Fearon

RESPONDENT: Chez Terez Limited

DECISION

The unanimous decision of the tribunal is that the claimant is entitled to receive the following sums from the respondent:-

(1) a redundancy payment in the sum of £2,062.50;

(2) a payment in lieu of notice in the sum of £1,125.00; and

(3) a payment of £135.00 in respect of holiday pay entitlement accrued but not taken as at the date of termination of employment.

The total amount to be paid by the respondent to the claimant is £3,322.50.

Constitution of Tribunal:

Chairman: Ms Crooke

Members: Mr Black

Mr Patterson

Appearances:

The claimant was represented by Mr Byrne, Barrister-at-Law, instructed by The Elliott Trainor Partnership, Solicitors.

The respondent did not appear and did not instruct any representation.

The claim and the defence

1. The claimant's claim was for a payment in lieu of notice, a redundancy payment and accrued holiday pay.
2. By a letter dated 8 August 2007 from McShane & Company (formerly solicitors to the respondent in these proceedings) it was apparent that the respondent company has ceased to trade and was not in a position to defend the proceedings. It was also made clear, as a matter of courtesy to the parties and to the tribunal, that the respondent company would not be appearing at the tribunal hearing.

Sources of evidence

3. The claimant gave evidence on her own behalf and there was a booklet of documents before the tribunal.

The relevant law

4. The relevant law is found in Articles 45 and 170 of the Employment Rights (Northern Ireland) Order 1996.

Findings of fact

5. The claimant was employed as a full-time sales assistant with the respondent from May 2001 to in or around 21 January 2007, giving her five completed years of service.
6. She received a gross weekly wage of £275.00 which equated to £225.00 nett.
7. It appeared that there was no notice of the impending redundancy. The claimant was simply informed on the morning of 22 January 2007, that there was a meeting that evening in The Buttercrane Centre which she had to attend. At that meeting, the claimant with others was informed that the shop in The Quays Centre, Newry, (which was the outlet in which the claimant was employed) was to close with immediate effect. They were informed that there was no money to pay wages in lieu of notice or redundancy payments.
8. There was a dispute in the versions of events between the claimant's evidence which was that she and another employee were to be paid £225.00 for two weeks to allow them to look round to obtain alternative employment. In the respondent's response, this payment was to be made on condition that the claimant and her colleague worked in The Buttercrane Centre Outlet part-time. The claimant's version of events was preferred by the tribunal.

Conclusions

9. The claimant had five completed years of service which entitled her to receive a payment equalling five weeks of her nett pay in the sum of £1,125.00. The claimant also was entitled to receive a sum based on her nett weekly wage in respect of holidays accrued but not taken in the sum of £135.00.
10. At the time of the termination of employment, the claimant was 49 years of age and all her five years of service with the respondent occurred after she was 42 years of age. Therefore this means that she is entitled to a multiplier for calculation of redundancy payment purposes in the sum of 1.5. As she had completed five years of service the calculation of her redundancy payment is as follows:-

£275.00 (gross pay) x 1.5 (multiplier) x 5 (completed years of service) £2,062.50

Summary

Redundancy payment £2,062.50

Payment in lieu of notice £1,125.00

Accrued holiday pay £ 135.00

Total £3,322.50

11. This is a relevant decision for the purposes of the Industrial Tribunals (Interest) Order (Northern Ireland) 1990.

Chairman:

Date and place of hearing: 23 August 2007, Belfast

Date decision recorded in register and issued to parties: