A dispute over the level of redundancy payments staff at Frawley's department store in Dublin should get when it ceases trading on June 2nd has been referred to the Labour Court.

This follows the failure of the Labour Relations Commission to broker a deal between management at Frawley's and the Mandate trade union, which represents most of the 40 staff at the store on Thomas Street.

The Labour Court will hear the matter on Friday morning.

Mandate is seeking six weeks' pay for each year of service for the workers, in line with the payout that Roches Stores's staff received following the company's sale to Debenhams. Management, however, is offering three weeks for every year worked.

Mandate said the Frawley's offer was inadequate given that the statutory level of redundancy pay is two weeks for each year worked and that the company is entitled to claim a 60 per cent rebate from government of the statutory element of the payout.

Many of the staff at Frawley's have worked at the store for more than 20 years. One worker has clocked up 39 years of service.

Management has argued that redundancy can only be paid for from the proceeds of the sale of the remaining merchandise.

Frawley's occupies three buildings on Thomas Street and has traded since 1892. The closure was announced in March due to a "dramatic change in the retail pattern" of the city.

The site has been valued at €10 million. "We believe that some of that money should go towards funding redundancy payments for our long-standing members," said Joe Donnelly, a Mandate official.

"Staff have co-operated fully with management on this issue and we'd like this to be resolved in an amicable manner."

No comment was available from Frawley's.