Former IBRC officials to sue over notice pay

Three former executives at the Irish Bank Resolution Corporation are to take legal proceedings against their former employer for payment of their notice entitlements.

A court hearing will take place on November 15th following applications by former IBRC chief executive Mike Aynsley and two other former senior executives, Tom Hunersen and Richard Woodhouse, last week.

Contrary to reports that the three executives were set for a court showdown over unfair dismissal, solicitor Donal Spring said the only proceedings that have been issued are under the Payment of Wages Act seeking payment of their notice entitlements as per their contracts.

He said the three former executives have not issued proceedings for unfair dismissal and nor are they seeking millions in damages as reported.

"They are simply seeking payment of their notice money as per their contracts of employment," he said. The lawsuits are being brought against KPMG's Kieran Wallace and Eamonn Richardson, who were appointed special liquidators to IBRC in February. Under the IBRC Act, the bankers have to seek permission of the court to take legal proceedings against the bank.

'Fully aware'
Last night, a spokesman for the special liquidators said they were "fully aware of the proceedings and dealing with them accordingly".

Mr Aynsley had a 12-month notice period, while former head of asset recoveries Mr Hunersen and former head of specialised asset management Mr Woodhouse are both believed to have had six-month notice periods.

Mr Aynsley was paid €663,000 by the bank, made up of a €500,000 salary, allowances of €38,000 and a pension sum of €125,000. Mr Hunersen and Mr Woodhouse were each paid a salary of about €400,000 a year.

While the IBRC liquidation legislation said all employment contracts were immediately terminated, it is silent on notice periods and payment of notice entitlements.

The Government liquidated IBRC in February as part of a deal to restructure the promissory notes used to bail out IBRC (comprising Anglo Irish Bank and the Irish Nationwide Building Society).