EMPLOYERS do not have an automatic right to suspend or otherwise discipline their workers. This is the finding of Judge Mangan in a district court judgment that could have wide ramifications for companies in the Republic.
Judge Mangan was dealing with a case brought by a salesman working for Irish Life in the Galway area, through his union, SIPTU. In 1994, the company restructured the workforce and the salesman was suspended for refusing to attend a sales meeting.
The salesman took the action as part of a wider protest by colleagues. He was suspended on July 14th, 1994, and instructed not to carry out any work for Irish Life or to contact customers.
The company also wanted him to give an undertaking that he would carry out normal duties, including attending all meetings, before resuming work. When he refused to do so he was removed from the payroll.
He was restored to the payroll on August 17th, when the dispute over restructuring was resolved. In January of this year, he sought to recover £1,317 in basic pay, and commission payments during the month long suspension.
The salesman's case was that there was no provision for suspension in his contract of employment. Suspension without pay was therefore a derogation from his contractual right to be paid and was itself a breach of contract.
Judge Mangan said the sales man was ill advised in not turn ing up for a sales meeting, but he accepted that suspension was not an option open to the company
"I accept the plaintiff's point that the contract did not provide for suspension and that the defendant only had the option of dismissing the plaintiff or suing him for breach of contract," Judge Mangan said. He decreed that the full amount be paid plus £40 expenses and legal fees.
A spokesman for Irish Life says the company's legal experts are reviewing our options. We are certainly disappointed by the verdict handed down. We felt suspension was an appropriate form of discipline in this case. It is ironic that we would have apparently been on firmer legal ground in dismissing the gentleman concerned than opting for less drastic action.
The company can appeal the judgment or seek to renegotiate contracts of employment with its unions at a time when industrial relations at Irish Life are entering a difficult phase. (See Page 18)