Plasterer Wins €16,940 at WRC After Underpayment

A recent Workplace Relations Commission decision has highlighted the significant risks employers face when pay, records and statutory entitlements are not fully compliant. In this case, a plasterer was awarded €16,940 in compensation after it was found that he had been underpaid and denied employment entitlements required under the construction sector rules.

The case began when the employee noticed a discrepancy between what he was being paid and what was recorded on his Revenue account. He engaged an accountant who identified that his hourly rate was below the minimum craft rate required under the Sectoral Employment Order for the construction industry. Evidence presented showed that he had been paid approximately €19.85 per hour when the minimum rate for the period should have been €22.24. The underpayment covered several months of employment.

The WRC also found that the employer failed to provide mandatory benefits including a pension scheme, sick pay and death in service benefits, all of which are compulsory under the construction Sectoral Employment Order. In addition, the company did not provide a complete written statement of terms of employment, which is a legal requirement under the Terms of Employment Information Acts.

Taking all of these breaches into account, the WRC ordered the employer to pay the worker €16,940 in compensation. This included both the shortfall in wages and compensation for the failure to provide the various statutory entitlements and employment documentation.

This case carries an important message. The construction sector is heavily regulated, but similar risks apply across all industries. Employees are more aware of their rights, and discrepancies are easier than ever to spot through payroll records, Revenue accounts and online systems. Once a concern is raised, it can very quickly escalate into a formal complaint, inspection or investigation.

For employers, and especially for small and medium sized enterprises, the consequences of getting pay or documentation wrong can be serious. Underpayments are costly to rectify. Failure to provide correct documentation or statutory benefits can result in further awards. There is also the reputational risk that arises when a case becomes public.

Now is an ideal time for employers to review their practices, particularly in areas such as pay rates, payslips, working time records, sectoral employment obligations and written terms of employment. Ensuring compliance in advance is far more cost effective than responding to a complaint or WRC investigation.

The recent plasterer case is a reminder of how easily issues can escalate and how costly they can become. A proactive compliance approach protects your business, reduces financial and legal exposure and ensures that employees receive what they are legally entitled to.



If you would like support reviewing your employment practices or preparing for a potential inspection, our team is available to help. Through our WRC Inspection Preparation Audit we carry out a full review of pay, contracts, sectoral obligations and statutory documentation. We identify any gaps, support corrective action and ensure that employers are prepared should a complaint or inspection arise. This is particularly valuable for SMEs that do not have dedicated internal HR resources.

info@mssthehrpeople.ie, Ph: +353 1 887 0690,  www.mssthehrpeople.ie