PWD2519

PARTIES:

DIVISION:

SUBJECT:

Appeal of Adjudication Officer Decision No's: ADJ-00046120 (CA-00056919-001).

BACKGROUND:

This is an appeal of an Adjudication Officer’s Decision made pursuant to the Payment of Wages Act, 1991.  The appeal was heard by the Labour Court in accordance with Section 44 of the Workplace Relations Act, 2015 on 23 April 2025. The following is the Court's Decision:

DECISION:

Background to the Appeal

This is an appeal by Mr Ian Walsh (‘the Complainant’) from a decision of an Adjudication Officer (ADJ-00046120, dated 12 August 2024) under the Payment of Wages Act 1991 (‘the Act’). Notice of Appeal was received in the Court on 21 September 2024. The Court heard the appeal in Limerick on 23 April 2025.

The Complaint

The Complainant is employed as a Relief Signal Person by Irish Rail/Iarnrod Ẽireann (‘the Respondent’). In 2022, the Respondent introduced a new payroll system following a process of engagement with the Trade Union Group. Between 2023 and 2024, five legacy payroll systems migrated to the new system. The Complainant received his first payment under the new system on Friday 12 May 2023 for the working week 1 to 7 May 2023.

The new payroll system shortened the timeframe for payment from 12 days to 5. To facilitate that change, employees (including the Complainant) on the (old) Rail Operative Payroll were paid for two weeks on 4 May 2023 (17-23 April (Week 18) and 24-30 April (Week 19). Both weeks were reclassified as Week 18. The Complainant received one week’s tax credits for the combined payment and payment of an allowance for the second week. The Complainant submits that he paid a higher rate of tax on the combined payment than he would have paid but for the changeover to the new payroll system.

The Respondent submits that it applied tax to the payment in question in line with Revenue guidelines and that no unlawful deduction was thereby made from the Complainant’s wages.

Discussion and Decision

The essence of the within appeal is that the Complainant believes that his wages were taxed incorrectly on 4 May 2023. This Court has previously determined that it has no jurisdiction to adjudicate on the rate of tax applicable to an employee’s wages. In Reign Healthcare v Ngene PWD2322, dated 27 September 2023, the Court stated: “The Court’s jurisdiction is solely confined to determining if there was a breach of the Payment of Wages Act. Where an overpayment of tax is made, that matter can be pursued directly by an employee with the Revenue Commissioners.”

Accordingly, the within appeal fails and the decision of the Adjudication Officer is upheld.

The Court so decides.

	Signed on behalf of the Labour Court
	Alan Haugh
TH	______________________
23 July 2025	Deputy Chairman

NOTE

Enquiries concerning this Decision should be addressed to Ms Therese Hickey, Court Secretary.