A former manager with the Irish operations of TNT Express Worldwide Limited, who claims he is owed more than £100,000 in unpaid bonus payments, has taken a High Court action against the company.
Mr Colin Jarrett (52), of Killinvoy House, Knockcroghery, Co Roscommon, claims he was appointed special services manager for TNT's operations in Ireland in July 1993. He had formerly run his own business in England and was a sub-contractor for TNT.
He claims he reached an agreement with TNT under which he was to be paid a salary of £12,000 a year and a bonus of 40 per cent of the monthly gross profits of the Special Services Division.
At the time the agreement was made, Mr Jarrett was told that the 40 per cent would be "40 per cent of nothing" because the Special Services Division was returning low revenues, Mr Ercus Stewart SC for Mr Jarrett said yesterday. But Mr Jarrett saw a real chance of making something of the job and that 40 per cent of nothing could result in something significant. He was willing to take the chance.
Mr Stewart said the entire case was about TNT's failure to honour the bonus agreement with Mr Jarrett. The bonus became "a decent bonus" very swiftly and when TNT realised that, it tried to unilaterally change the terms of Mr Jarrett's employment and "to do him out of the bonus".
Mr Jarrett had left TNT's employment in October 1995 by reason of redundancy, counsel added. Up to then, he was accepting smaller bonuses under protest and never agreed to alternations of the bonus agreement.
TNT had breached the agreement and owed more than £100,000 to Mr Jarrett, it is claimed.
In the action, Mr Jarrett is seeking an account of all sums which he claims is due by TNT on foot of the agreement made on July 28th, 1993, and an order directing payment of those sums and damages for breach of contract.
In its defence, TNT states that Mr Jarrett's initial appointment was as temporary special services manager. It admits Mr Jarrett was to be paid, with effect from August 16th, 1993, a bonus with reference to profits and targets set out in a memo of July 28th, 1993. It denies that arrangement was to operate indefinitely or that the alleged or any bonus was to be paid in addition to Mr Jarrett's salary or other remuneration.
TNT claims it was expressly agreed that Mr Jarrett's position with the company and the remuneration and bonus payable to him was at all times to be subject to review and renegotiation from time to time. TNT admits it revised the terms of the bonus scheme from time to time after July 28th, 1993 and says it was entitled to do so. Alternatively, it pleads that targets to be achieved, methods of calculation and amounts were agreed between it and Mr Jarrett.
The hearing before Mr Justice Geoghegan continues today.
