The Labour Court has ordered the packaging group owned by 2021 overall EY Entrepreneur of the Year, Brian O'Sullivan to pay out €34,000 compensation to a former Business Development Executive for her unfair dismissal.
In the Labour Court ruling, Deputy Chairwoman, Louise O'Donnell has concluded that Gráinne O’Hara was unfairly dismissed by Zeus Packaging Group "arising from unfair selection for redundancy".
The case came before the Labour Court on appeal from Ms O’Hara from the Workplace Relations Commission where the WRC last November ordered Zeus to pay Ms O’Hara €10,000 compensation, less the statutory redundancy amount that she had already received, for her unfair dismissal.
In making the €34,000 award, Ms O’Donnell said the court has already factored into its calculations the statutory redundancy payment received by Ms O’Hara.
Recent accounts show that the Rathcoole headquartered Zeus Packaging last year recorded a 51% increase in pre-tax profits to €16.39m as revenues surged by €80.96m or 39% to €287.45m. Pay to Fermoy native and sole director, Mr O'Sullivan last year reduced from €2.3m to €2.18m.
In the Labour Court ruling, Ms O'Donnell also found that no serious or worthwhile consultation took place with Ms O'Hara prior to the decision to make her redundant in July 2020.
Ms O'Donnell said that the process used by Zeus Packaging was not clear and transparent and that no substantial consideration was given to alternatives to dismissing Ms O'Hara by way of redundancy.
Ms O’Hara commenced work with Zeus in May 2017 as a Business Development Executive and Sales Representative.
Arising from the Covid pandemic, Ms O’Hara was placed on temporary layoff with effect from March 24, 2020.
Ms O’Hara submitted that she continued to work with clients as requested by Zeus until April 22, 2020 when her computer access was blocked.
She said that on May 27, 2020 she was asked to return the company car on July 10, 2020, she was informed that she was being made redundant.
Ms O’Hara submitted that in the course of the conversation on July 10, 2020, Zeus was unable to identify the selection criteria used in coming to the decision.
On July 14, Ms O’Hara emailed Zeus setting out a list of reasons why she should be kept in employment but on July 24, Ms O’Hara was informed that her employment had been terminated by way of redundancy.
Ms O’Hara submitted that the process engaged in by the employer was not a fair, open and transparent procedure and that she had more skills than some staff who were retained.
Ms O’Hara took up new work in September 2021. She said her earning with Zeus was €43,00 per annum plus bonus and the use of a company car while her earnings with her new employer is approximately €5,000 a year less.
A representative for Zeus told the court hearing that the lockdown hit the business hard and it had to lay off 23 people and of those six people were made redundant that included four from Ms O’Hara's department.
Zeus disputes that Ms O’Hara was unfairly selected for redundancy or that the procedure followed was not a fair procedure.
It submitted that they considered various other options before coming to the decision to implement redundancies.
Zeus also confirmed that since Ms O’Hara’s redundancy the department she worked in had closed completely.
In terms of the process Zeus submitted that they used a matrix, but the matrix was only one factor in the process; it did not operate in isolation in the redundancy process.
Zeus has been contacted for comment on the Labour Court outcome.
Reporting by Gordon Deegan
