€2,321 WRC Award: Employers Cannot Make Staff Responsible for Business Losses
A catering company has been ordered to pay €2,321.75 in outstanding wages after attempting to justify non-payment by referring to poor commercial performance at a music festival. The Workplace Relations Commission (WRC) rejected the suggestion that employees could be held collectively responsible for the business’s losses.
Running a business involves commercial risk. Events may underperform, sales can fall below expectations, and unexpected costs can place significant pressure on an employer.
However, financial difficulties do not remove an employer’s legal obligations to employees.
This was reinforced in a recent WRC decision, ADJ-00061719, involving Nord Events Ltd and a temporary worker who had not received payment for work carried out in connection with Forest Fest 2025 in Co Laois.
The WRC found that the employer had failed to pay wages properly due under the Payment of Wages Act 1991 and ordered payment of €2,321.75.
The decision highlights the importance of distinguishing between the financial performance of a business and the employment rights of the individuals working within it.
What Happened?
The complainant, Martina Tierney, was a secondary schoolteacher who took up temporary employment with Nord Events Ltd, a Belfast-based catering company providing services at music festivals.
Following an introductory meeting in June 2025, she agreed to undertake work connected with the company’s festival catering operations.
An hourly rate of €18.50 was agreed.
Her role involved preparation and administration for the catering operation, including work connected with Forest Fest 2025.
Between 18 and 28 July 2025, she undertook administrative and preparatory work and subsequently submitted a claim for payment covering 119.5 hours.
On 8 August 2025, she requested payment for those hours.
According to her evidence, she was informed that payment would be made within seven to 28 days of submitting her claim.
Despite following up with the employer, she did not receive her wages.
On 15 September 2025, she lodged a complaint with the WRC.
By the time the matter was heard on 16 September 2026, more than a year after she had requested payment, the wages remained outstanding.
The Employer’s Explanation
The employer did not attend the WRC hearing, despite the Adjudication Officer being satisfied that notice had been sent to the company’s registered office.
However, the employee provided correspondence received from the employer following her request for payment.
Rather than resolving the unpaid wages, the employer referred to difficulties encountered during the festival.
These included reduced turnover and complaints concerning food quality.
The correspondence suggested that the poor commercial performance was connected with shortcomings involving the team assembled to operate the catering service.
The employer referred to what it described as a shared responsibility for the financial outcome.
The issue for the WRC was whether these commercial difficulties could justify the failure to pay the employee for work already performed.
What Did the WRC Decide?
Adjudication Officer Pat Brady accepted the employee’s uncontested evidence and found that she had been engaged as an employee under a contract of service.
He also noted that none of her employment terms had been reduced to writing and that the employer had not complied with the requirements of the Terms of Employment (Information) Acts.
In addressing the employer’s explanation for non-payment, the Adjudication Officer stated:
“Where a business loses money there is no ‘collective responsibility’ for those losses.”
The WRC found that the operational difficulties raised by the employer had no bearing on the employee’s entitlement to the wages that were properly payable.
While an employer may need to address operational shortcomings or performance concerns through appropriate processes, those issues do not automatically permit the withholding of employees’ earnings.
The complaint under the Payment of Wages Act 1991 was upheld.
The employer was directed to pay €2,321.75 in outstanding wages.
What Does the Payment of Wages Act Mean for Employers?
The Payment of Wages Act 1991 regulates the payment of wages and the circumstances in which deductions may lawfully be made.
Employers must pay wages that are properly payable under the relevant employment arrangements, subject to lawful deductions.
The legislation provides that non-payment or a deficiency in wages properly payable may be treated as an unlawful deduction, subject to the statutory provisions.
Certain deductions may be permitted where they are required or authorised by law, provided for under the employment contract, or agreed to in writing in advance.
However, additional restrictions apply to deductions arising from an employee’s acts or omissions, including those connected with alleged losses or damage.
The legislation does not give an employer a general right to transfer commercial losses to employees by withholding wages.
For example, a restaurant having a disappointing weekend, a retail business missing its sales targets or an event company suffering a loss does not, by itself, justify refusing to pay staff for work already completed.
Employers must distinguish between managing business performance and fulfilling contractual and statutory employment obligations.
Why Temporary and Seasonal Employment Still Matters
Another important aspect of the decision is that the employee was engaged for short-term festival work.
The temporary nature of the arrangement did not prevent the WRC from finding that an employment relationship existed.
The Adjudication Officer concluded that the complainant had been engaged under a contract of service, even though the terms had not been put in writing.
Irish employment legislation places obligations on employers to provide written information about the principal terms of employment.
In general, employers must provide a written statement of core employment terms within five days of commencement, together with the further particulars required within one month.
For employers relying on seasonal, event-based or temporary staff, clear documentation is particularly important.
Relevant matters include the agreed rate of pay, expected hours, payment arrangements, duties and duration of the employment.
Written records help establish what has been agreed and reduce the risk of disputes when the engagement ends.
Five Practical Lessons for Irish Employers
1. Keep commercial losses separate from payroll obligations
Business losses may require operational changes, financial restructuring or difficult decisions about future staffing.
They do not automatically excuse non-payment of wages already earned.
Payroll liabilities should be considered when planning business activities, particularly where income is uncertain.
2. Confirm pay and employment terms in writing
Even where work is temporary, the relevant statutory requirements concerning written employment particulars should be addressed.
Clear information about pay rates, hours, payment dates and employment duration can help prevent disagreements.
3. Maintain reliable records of hours worked
Businesses operating across events, multiple locations or variable shifts should have a reliable method of recording working time.
Timesheets, approvals and payroll records should be checked promptly so any legitimate discrepancies can be resolved.
4. Manage performance issues through the appropriate process
If an employer believes an employee has made mistakes or contributed to operational problems, those concerns should be examined fairly and separately.
A complaint about performance does not, of itself, create a right to withhold wages.
Any proposed deduction must have a proper legal basis and comply with the relevant statutory requirements.
5. Respond to payment disputes promptly
Where an employee raises concerns about missing wages, the employer should investigate, check the relevant records and respond clearly.
Ignoring a payment dispute or relying on unrelated commercial explanations can increase the risk of a formal WRC complaint.
If a complaint is subsequently brought before the WRC, employers should take it seriously, review the evidence and prepare their response carefully.
For further guidance, read our article: Received a WRC Complaint? 7 Things Employers Should Do Before the Hearing.
The Lesson for Employers
The central issue in this case was straightforward.
The employee had performed work, the WRC accepted that wages were due, and the employer had not paid them.
The business’s commercial difficulties did not provide a lawful justification for that failure.
Employees can be accountable for their work without automatically becoming financially responsible for the losses of the business employing them.
For employers, this is a reminder that payroll obligations, employment documentation and the management of workplace performance are separate issues that each require proper attention.
It is especially relevant to businesses operating with temporary or seasonal employees, where informal arrangements can sometimes create uncertainty about pay and responsibilities.
Facing a Workplace Dispute or WRC Claim?
Receiving a workplace complaint or facing a dispute about employment obligations can be challenging, particularly when a business is already under financial or operational pressure.
At Employment Matters, we assist employers and HR teams with workplace disputes, employment claims, fair procedures and practical workplace resolutions.
Our Defending a Legal Claim service supports employers facing workplace complaints, including matters brought before the Workplace Relations Commission.
Whether your business has received a WRC complaint, is dealing with a dispute about employee entitlements or wants to review its existing workplace procedures, addressing the issue early can help you make informed decisions.
Need guidance on an employment matter?
Contact Employment Matters to arrange an initial conversation with our team and discuss the support your business may require.
WRC Case Reference: ADJ-00061719
Complaint Reference: CA-00075429-001
Parties: Martina Tierney v Nord Events Ltd
Legislation: Payment of Wages Act 1991
Decision Date: 29 September 2026
Adjudication Officer: Pat Brady
Award: €2,321.75 in outstanding wages
Official WRC Decision: Read ADJ-00061719
This article is provided for general information and does not constitute legal advice. The application of employment legislation depends on the facts and circumstances of each case.
