Founder Wins €85,000 After Salary Stopped in Workplace Dispute
The founder of a clothing brand for breast cancer patients has been awarded almost €85,000 after her salary was cut off. The Workplace Relations Commission (WRC) ruled she was constructively dismissed from her role at Theya Healthcare Ltd, a company she had built over a decade.
From Entrepreneur to Employment Dispute
Ciara Donlan launched Theya Healthcare to create post-surgery clothing for women recovering from breast cancer. In 2023, she faced what she described as an “aggressive takeover” by two angel investors. This led to the liquidation of her original company, despite it being profitable.
Members of the Gallagher family, who manufacture medical garments in China, purchased Theya’s assets. They offered Ms Donlan a CEO role with a 40% shareholding in the new entity, plus a salary package of €90,000 and €20,000 in off-the-books expenses. The remaining 60% of the company went to Anne Sweeney, wife of businessman Joseph Gallagher.
A Role Without a Contract
When Ms Donlan asked for a written CEO contract, Mr Gallagher dismissed the request. She said that, although the new owners promised to prioritise production, ongoing delays in manufacturing damaged customer relationships and disrupted sales. Her attempts to address these problems were often met with vague or evasive answers.
“These difficulties made managing the business nearly impossible,” she said.
Tensions Rise Over Unpaid Expenses and Salary
The situation worsened in September 2024 when her monthly expenses went unpaid. She later discovered the company’s financial director had been instructed not to release the payment. Despite this, she continued working out of loyalty to her customers.
Later that month, she was told she would not receive her September salary — while other staff continued to be paid. The WRC found there was no legal reason or agreement for withholding her wages. The adjudicator called it a “fundamental breach” of her contract.
Tribunal Ruling
The WRC ruled that Ms Donlan had been constructively dismissed and awarded:
- €67,500 – nine months’ pay for loss of income
- €10,000 – unpaid salary under the Payment of Wages Act 1991
- €6,923 – compensation for the lack of a written contract under the Terms of Employment (Information) Act 1994
The adjudicator noted this was the maximum award possible for the contract breach, calling it more serious than providing incorrect or incomplete terms.
In total, Ms Donlan received €84,423.
If you believe your employment rights have been breached, contact Employment Matters today. We provide clear, practical advice to protect your career and livelihood.
