Two Portlaoise publicans say the other should be responsible for paying redundancy to an out-of-work barman after receivers changed the locks on the pub where he worked and sold it.
The Workplace Relations Commission has been told that the Welcome Inn on Market Square in Portlaoise, Co Laois was seized in October 2020 by receivers acting for Pepper Finance and Goldman Sachs, which had acquired a €2.9 million debt secured against the premises and another bar across the street.
Barman Alan Dunne, who had worked for more than 15 years at the Welcome Inn before the sale, has lodged claims under the Redundancy Payments Act 1967 against both Bradpower Ltd, the former operating company at the Welcome Inn, and Donnie Norton, the new owner of the pub.
On Wednesday afternoon at the Workplace Relations Commission, Mr Dunne’s barrister James Daly BL said his client had expected to receive his redundancy from the state’s social insurance fund in October and November 2020, when he filled out the relevant forms.
How does VAT in Ireland compare with countries across Europe? A guide to a contentious tax
‘I was a cleaner in my dad’s office, which makes me a nepo baby. I got €50 a shift’
Will we have a tax liability if Dad gives us his home while he is alive?
Finding a solution for a tenant who can’t meet rent after splitting with partner
“Mr Dunne wasn’t advised there was any issue whatsoever with his redundancy,” Mr Daly said — but added that his client made inquiries in January 2021 only to be informed that officials were “waiting for documents from Mr [David] Power’s accountant”.
He was then informed that Mr Power, a director of the operating company Bradpower Ltd, was taking the position that the new owner of the pub had responsibility for Mr Dunne’s redundancy, claiming there had been a transfer of undertakings.
Aaron Shearer BL, who appeared for the new owner Donnie Norton and his company, Zalzon Ltd, said the receivers had been appointed over the property alone and that his client had bought only the property.
Mr Dunne gave evidence that he never had “any dealings” with Zalzon Ltd, was never aware of the company and had never been contacted by the firm in connection with any transfer of undertakings.
Mr Power said he and his wife took over the running of the bar in 2005, along with Mr Dunne’s employment.
He said that he and the former owner of the premises, Eamon Brady, then formed the operating company Bradpower Ltd in 2007, which then leased the premises from Mr Brady.
He and Mr Brady, as business partners, then secured a loan of €2.9 million from KBC against the Welcome Inn and another licensed premises across the street, Coppers, incorporating a €600,000 loan Mr Brady had with AIB.
He said they “ran into difficulties” servicing the loan in 2015 and that KBC then sold it to Goldman Sachs.
Receivers were appointed in October 2020 and “locked us out”, Mr Power said.
He said they received legal advice to make staff redundant at this point.
“That turned out to be wrong advice,” he said — adding that he withdrew the redundancies “in or around January 2021″.
“Someone is liable for redundancy — the man is out of work. Mr Dunne is entitled to a decision fairly quickly,” the adjudicating officer Peter O’Brien said.
Mr Daly said his client was “not a man of enormous means” and that the costs associated with three days of hearings in the case as well as written submissions had to be considered.
Closing the hearing, the adjudicating officer said that he hoped not to have to list the matter for a third date to run an “economical case” as he was not empowered to make an award for costs.
“I’ve lost the premises, I’m at a huge loss here — surely I’m entitled to bring our barrister and fight our case,” Mr Power said.
Mr O’Brien said he had no alternative if Mr Power was going to “absolutely insist on a further hearing”.
