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Blog  »  September 2017  »  Employee awarded maximum unfair dismissal compensation - Blog
11
Sep 17

Posted by
Lauren Conway

Employee awarded maximum unfair dismissal compensation

The Labor Court has recently ruled that a driver was unfairly dismissed after he was involved in three road accidents. The driver was awarded €72,042, equating to two years remuneration - the maximum compensation which could be awarded.

Background

Mr. Coughlan was employed as a van driver for DHL for 11 years. In 2012 he was involved in a road accident to which he received a written warning. In 2013 he was involved in a second road accident where he received a final warning. The warnings were ‘live’ for 12 months, after which they expired. The claimant was involved in a third road accident in 2015 to which damages to the van amounted to €2,500. By that time both previous warnings had expired and he was brought into a disciplinary hearing for “failure to protect and safeguard company property”.

During the hearing Mr. Coughlan took responsibility for his misjudgment which led to the accident. Throughout the hearing numerous references were made to the expired incidents. Mr. Coughlan was dismissed with immediate effect for gross misconduct on the basis that he had failed to protect and safeguard company property.

Finding

The WRC found the dismissal unreasonable and ordered reinstatement. At the appeal to the Labor Court, DHL argued that they had no other choice but to dismiss Mr. Coughlan as their faith in his driving abilities was lost. Although his previous warnings had expired, the company felt that they had to take his entire working history into consideration. The Court determined that the 2015 incident, in isolation to the previous warnings was not sufficient to dismiss. It also took into consideration the company’s failure to consider alternative positions within the organisation for Mr. Coughlan.

Learning Points

This case highlights something we see time again, the importance of practicing fair procedures when considering dismissal. It highlights the importance of employers showing that they had considered alternative roles where possible before dismissal – something that is often noted in unfair dismissal cases. Lastly, the enormous amount awarded to Mr. Coughlan reminds employers of the costly consequence unfair dismissal can have on their business.

Posted in Company handbook, Contract of employment, Dismissals, Employee Contracts, Employee Handbook, Employment Contract, Employment Tribunals, Health & Safety, Pay/Wage, Staff Handbook