SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
IBRC IN SPECIAL LIQUIDATION
(REPRESENTED BY A & L GOODBODY)
- AND -
1.Payment Of Outstanding Redundancy Claim
The Court has given very careful consideration to the written and oral submissions of the parties.
The Court has noted the very difficult experience of the Claimant throughout the period and in particular is aware of the grievous price paid by him arising from the collapse, through no fault of the Claimant’s, of his employer’s business and his ultimate redundancy as a consequence on terms which did not, in the view of the Court, respect his years of service to Anglo Irish Bank and later IBRC.
It is common case that the Claimant was employed by Anglo Irish Bank from September 2006 until that institution became part of IBRC in July 2011. His employment continued in IBRC until February 2013 when that entity was liquidated as a result of an Act of the Oireachtas. At that point in time the Claimant’s employment, along with the employment of over 800 colleagues, was terminated. The Claimant was made redundant and received payment in respect of all of his statutory entitlements arising from that redundancy.
The Special Liquidators appointed as a result of the liquidation made arrangements with approximately 400 of the former employees of IBRC whose employment had terminated, to engage in a new contract of employment with an entity which had been created by the 2013 Act and entitled ‘IBRC in Special Liquidation’ in order to assist with the wind down of IBRC and the processing of the loan book.
The Claimant resigned his employment with IBRC in Special Liquidation in November 2014.
The Claimant contends that he should receive an enhanced redundancy payment over and above the value of the redundancy payment he received in 2013 upon the termination of his employment with IBRC. The claim is based on the Claimant’s assessment that IBRC in Special Liquidation has funds available to it to make a payment to him. He contends that he should receive such money on the basis of the operation of company law and in preference to certain other creditors of the company in special liquidation.
The background to the claim includes the operation of an enhanced voluntary redundancy scheme in IBRC from 2011 until the liquidation of the company with the termination of the employment of all employees on statutory terms in February 2013.
The employer rejects the claim and contends in any event that any Recommendation of the Court in the matter can have no effect arising from the legal framework which applies to liquidations.
It is not for this Court while exercising its jurisdiction under the Industrial Relations Acts to purport to make findings or decisions as regards the correct interpretation or operation of Company Law. The Court must confine itself to consideration of the within trade dispute as a matter of industrial relations.
In that context, the Court is presented with a claim relating to redundancy terms paid in 2013 and is asked to consider that an enhanced payment over and above that which was made to over 800 staff of IBRC at that time should now be made to the Claimant.
The Court takes particular note of the fact that the Claimant has delayed almost eight years in order to refer the matter to the Court and also takes note of the fact that the payment of statutory entitlement to the Claimant and his colleagues in 2013 reflected the undisputed operation of the law in respect of a company which was placed in liquidation at that time.
Having regard to the history and all of the circumstances surrounding the matter, the Court is unable to recommend concession of the claim.
The Court so recommends.
Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.