Submissions on Gama firms sought by tribunal

The Employment Appeals Tribunal is to accept submissions on the business relationship between an Irish and a Turkish construction company following a claim by a Turkish worker that he is owed €160,000 in back pay.

Mehmet Orgun Tuzun worked in Ireland from October 2004 to May 2005. He carried out work for Gama Construction Ireland (GCI) under a secondment arrangement from Gama Industry, a Turkish company.

Although he had signed a contract with Gama Industry, the rights commissioner ruled that he was an employee of GCI because the Irish company was named as his employer on a work permit from the Department of Enterprise, Trade and Employment. GCI appealed the decision to the Employment Appeals Tribunal.

Gama set up an operation in Ireland in 2000 to work on major infrastructure projects. It also owns 40 per cent of the Tynagh power station in Co Galway.

Laurena Hughes, solicitor for GCI, told the tribunal last week that the company signed the work permit because Gama Industry was not registered in Ireland and so could not apply for permits. The Department of Enterprise, Trade and Employment had been aware of the arrangement since 2002, she said.

She argued that Mr Tuzun was never an employee of the Irish group because he was only seconded to the company, and at all times his wages and social insurance entitlements were paid by the Turkish business.

However, tribunal chairman James Flanagan queried the nature of the secondment arrangement between the Turkish and Irish companies. He argued that, in law, a seconded worker becomes a temporary employee of the company to which he is seconded. He said that the relationship between the two companies appeared to be more like that of a contractor and a subcontractor.

Ms Hughes replied that there could be more than one interpretation of secondment. Mr Flanagan asked that she supply examples of case law to back up that view.

Ms Hughes also told the tribunal that a similar claim for money owed was being taken by Mr Tuzun with the Turkish labour inspectorate against Gama Industry. The claimant had acknowledged to the Turkish labour inspectorate that he was an employee of the Turkish company, she said.

The hearing was adjourned pending receipt of a written submission from Ms Hughes.