Community Employment Scheme Workers Make Pay Claim Against Employer instead of FaS

A group of Community Employment (CE) Scheme workers recently had their claim for payment of wages against an employer heard by a Tribunal. The case concerned 27 respondents who had claimed that their pay had been varied without their agreement and this was originally upheld by a Rights Commissioner and appealed by the employer to the EAT.

The Tribunal heard the cases and the Employer argued that the remuneration of participants in a CE scheme was set by central Government and administered by FÁS. The rate of remuneration is determined by the national budget and is directly related to the level of social welfare payment a participant receives. The employer had no control over the rate of remuneration and is entirely dependant on state funding.

The employees had argued that the contract provided by FÁS does not provide for any wage changes and that terms are at all times dictated by FÁS. (The contract provides for an "allowance" in the context of remuneration)

The Tribunal determined that because of;

1. the nature of the payments and their relativity and clear connection with the level of the participants social welfare;
2. the fact that all funding is provided by central government through FÁS;
3. that all rates of remuneration, described as allowances, are determined by central government;
4. the employer had no control of any kind over the rate of remuneration payable to the employees;

 they could not find against the employer in this case, and the Rights Commissioner recommendation was overturned.

Impact

This was a sensible decision in the case of employers and the status of CE scheme workers. These participants are facilitated on the understanding that they will retain social welfare entitlements and gain valuable experience in a work environment, with the benefit to the employer being additions tot he workforce at little additional cost. To take a claim under the Payment of Wages Act against the employer and have this upheld by the Rights Commissioner and then so definitively overturned by the EAT, is a vindication for the employer and restores the faith and incentive in these schemes for employers.

The Tribunal's full determination can be viewed here.