An employee who has been receiving an additional payment from 2003 to date for additional duties/responsibilities has now received a letter advising them that this allowance with be withdrawn as it does not meet Policy/Procedures. May an allowance be withdrawn without any negotiations/discussions and with no Policy/Procedures available?Posted in : First Tuesday Q&A ROI on 7 February 2012
If the additional duties and the basis on which the allowance is paid is clearly documented or otherwise identified, then the employer may be entitled to withdraw the allowance if the duties are genuinely no longer required.
However, an "allowance" that has been in place for 8 years is, due to the passage of time if nothing else, now more likely to be considered base pay. Therefore the most prudent approach for an employer would be to treat the removal of the allowance as it would treat a proposed reduction in base pay.
There have been many salary reductions implemented by employers in Ireland since the economic downturn and many of these have been successfully introduced, sometimes even on
Already a subscriber?
Click here to login and access the full article.Log in now to read the full article
Don't miss out, start your free trial today!
Are you fully aware of the benefits of Legal-Island's Irish Employment Law Hub? We help thousands of people like you understand how the latest changes in Irish employment law impact your business through a mix of case law analysis and in-depth articles. All delivered right to your inbox.
We help you to understand the ramifications of each important case from Ireland and Europe.
We help you ensure that your organisation's policies and procedures are fully compliant with Irish law.
You will receive regular updates on Irish employment law including case law reviews, legislative changes, topical updates as well as answers to your burning questions through our Q&A feature.
You will have 24/7 access to the Employment Law Hub so you can research case law and HR issues when you need to.
Back to Q&A's This article is correct at 02/09/2015
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.