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Not unfairly dismissed

A Hartstown man has lost his appeal to the Employment Appeals Tribunal against a claim of unfair dismissal by a Coolock based printing company.

The tribunal was told that Peter Nolan who was production director of Computer Stationery Printers, trading as Printcom had told the owner of the company that he would only agree to redundancy if he was given a 10% stake in the company. Mr. Nolan, who refused to accept a redundancy cheque for €20,000 claimed he had been unfairly dismissed by the company.

Diarmuid Everard, the owner of Printcom, told the tribunal that his company was under ‘‘severe threat from the increase in e-commerce’’ and business had fallen significantly in recent years. He explained that turnover had dropped from €2.4 million to €2 million in 2006 and he expected it to fall by further 10% in 2007. The number of staff employed at the company had also fallen from 23 staff in 1999 to the current workforce of 15.

According to Mr. Everard, Peter Nolan had been a printer and was appointed production director in 2002. Within three years Nolan was earning €200 a week more than he was. Mr. Everard proposed paying Nolan about €20,000 to take a redundancy and then re-hiring him as a printer on a lower salary.

He said that Nolan had not been willing to discuss it and when asked what it would take to keep him, Nolan replied; ‘‘10% of the company.”

In July 2006, Mr. Everard told Nolan that he was no longer employed as production director. However he refused to sign the redundancy forms and would not accept the redundancy cheque.

According to Mr. Nolan, Printcom’s business adviser drew up an agreement giving Nolan the title of production director and agreeing to pay him between €60,000 and €70,000 in 15 years’ time, but this agreement was later “shelved.” He said the redundancy offer would have meant a cut in salary of €300 a week for him. In July 2006, he left the company with “nothing.”

In his findings, Des Mahon, chairman of the tribunal, said a genuine redundancy situation did exist and Nolan was not unfairly dismissed. He also found that while he was entitled to a statutory redundancy payment he was not entitled to compensation for unfair dismissal.





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