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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Dower v. Radio Ireland Ltd t/a Today FM [2000] IEHC 147 (14th September, 2000) URL: http://www.bailii.org/ie/cases/IEHC/2000/147.html Cite as: [2000] IEHC 147 |
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1. The
Plaintiff is a Radio Presenter/Disc Jockey. He was first employed by the
Defendant under the terms of a contract dated 8th April, 1997 expressed to be
for 3 months commencing on 10th march, 1997. In fact the start-up date of the
station was around 17th march, 1997.
3. A. "Mr.
Dower is a self-employed free lance Radio Producer and Programme
Presenter
and has certain knowledge, skills and abilities which Radio Ireland is
wishes
to avail of.
4. B. Mr.
Dower has agreed to provide services to Radio Ireland as a Producer and
Presenter
on the following terms and conditions."
6. Radio
Ireland hereby engages Mr. Dower to provide to Radio Ireland as a
Producer
and Presenter of two weekly radio programmes to be broadcast at
6.00
to 8.00 pm each Saturday and Sunday on the terms and subject to the
conditions
hereinafter contained."
8. This
agreement shall commence on 10th March, 1997 and shall continue
for
a fixed period of 3 months unless terminated earlier on notice by weather
party
in accordance with Clause 9 hereof and provided always that this
agreement
may be terminated summarily f Mr. Dower is in breach under the
provisions
of Clause 10 hereof."
10. Mr.
Dower will provide his service for such hours as are reasonably necessary
enable
him properly and diligently to carry out the services referred to in
Clause
1 hereof."
12. Radio
Ireland will pay to Mr. Dower a fee of £80 per programme for his
services
under this agreement which will be charged by Mr. Dower weekly in
arrears
such fee to be exclusive of value added tax (if applicable). The weekly
fee
will be paid on presentation of invoice by Mr. Dower."
14. Breaks
from weekly schedule may be as agreed between Mr. Dower and the
programme
Controller. In the event of Mr. Dower being unable to provide his
services
hereunder due to illness he will notify the Programme Controller
immediately
and in any event no later than 2 hours prior to commencement of
his
programme."
16. This
agreement may be terminated by either party giving to the other not less
an
one weeks prior notice in writing."
19. This
agreement shall be governed by Irish Law and all disputes which arise
between
the parties in connection with this agreement by the parties or in
20. The
Plaintiff continued working for the Defendant until, following a meeting on
14th June, 2000, he was given three months written notice on 14th June, 2000
terminating his working arrangement. he then issued a plenary summons on 12th
July, 2000 claiming he was still employed by the Defendant and brought a motion
for injunctive relief requiring the Defendant to continue to pay his
remuneration. The Defendant brought an application to stay the proceedings
under Section 5 of the Arbitration Act, 1980 so that the matter could be
submitted to arbitration. It claimed that the provisions of Clause 17 applied
to the contract between the Plaintiff and the Defendant.
21. The
two matters came on for hearing on 26th July, 2000 when the application to stay
was taken first and heard on Affidavit. Since there were disputed matters of
fact in the Affidavits the matter was adjourned for oral evidence to 5th
September, 2000.
23. The
Plaintiff claims that although he was initially employed as an independent
contractor on a fixed month contract, the renewal of this contract from time to
time showed he was an employee a the latest when the Defendant agree to pay him
£30,000 per year. he claims he was always subject to the control and
direction of the Defendant.
24. The
cases in relation to the difference between contracts for services and
contracts of service have been cited to me. The perspective in this case is
somewhat different in that the Plaintiff was clearly employed on a contract for
services on 1997 and the question is whether the status of his working
arrangement changed.
25. The
facts are that he started doing two weekends, 6.00 to 8.00pm on Saturday and
Sundays at £20 per hour, s total of 4 hours. in June, 1997 he was asked
to do a lunchtime slot during the week plus 4 hours at weekends, a total of 14
hours for which he was paid £560 per week. This was later reduced to
£480 per week when Saturday was dropped. In August, 1997 he was asked to
do 10.00am to 1.30pm weekly with two hours on Saturday and was paid £650
per week. In January, 19987 he was offered a position as a Swingjock (i.e. a
person who slots into vacant slots or covers for sickness/holidays of other
Presenters) as well as a Saturday morning breakfast show, 6.00am to 9.00am and
Sunday afternoon, 1.00 to 3.00 pm. For this he was paid £500 per week.
26. In
September, 1998n he said he was offered by Tome Hardy, Assistant Programme
Manager, a position as Presenter of the breakfast show, 5.00 to 7.00am, in
addition to providing relief cover for Ian Dempsey on his breakfast show, 7.00
to 10.00am. For this he was paid £30,000 per annum, invoiced at £577
per week from the 2nd of October, 1998 to the present time.
27. Tom
Hardy, who negotiated with the Plaintiff, recalled the meeting and said it was
essentially about a change in hours. There was no change in his contractural
position. He said his collection was that Tom Street, teh CEO agreed the fee.
28. The
Plaintiff's evidence was that since he was going to fill in for 2 months, he
asked Tom Hardy for £650 per week which was the same as before and Mr.
Hardy said no and offered £30,000 per annum, equivalent to £577 per
week. The Plaintiff also said in evidence that if h voiced up a radio
commercial he got paid extra to do it.
29. It
is my view that there was no agreement to pay a salary of £30,000 per
annum constituting employment but rather agreement to pay a fee calculated on
£30,000 per annum.
30. The
Plaintiff is registered for VAT with the Revenue Commissioners as a sole
trader. All his remuneration has been paid on foot of invoices for 4 weeks at
a time with VAT at 21%. Following the agreement for £30,000 per annum he
presented his invoices every 4 weeks showing 4 weeks at £577.
31. The
Plaintiff claimed he was entitled to 35 days holiday and sick pay. The only
onvoice submitted claiming holiday pay was submitted after the dispute between
the parties arose. Mr. O'Reilly, current CEO of Defendant since June 1999,
said nobody in the organisation is entitled to 35 days holiday.
32. Mr.
O'Reilly said that the position of a Radio Presenter is by its nature
precarious. It is very much personality and style driven. The Defendant pays
the Presenters to bring in an audience and the rewards are large. A successful
Presenter who is free lance can maximise earnings by outside work. Mr.
O'Reilly said he put the life span average at about 3 to 4 years but there were
exceptions such as Gay Byrne. Mr. O'Reilly was with RTE 19 years and they
have the same practice there. I his Affidavit he stated the agreement with
the Plaintiff was terminated not because of any wrongdoing or default but
because the station was unable to find a niche which suited the Plaintiff's
skill and personality as a Presenter. He also said that anyone taken on as an
employee would have PRSI and PAYE deducted as well as being put on the pension
plan. He said the Plaintiff for the breakfast show from 5.00 to 7.00am came in
at 4.30 am and was gone after the show by 8.00am. He had no desk and no
telephone extension. he said the procedure for payment is to agree how much
and divide it up and pay it. The normal course of business is done on a
monthly basis. The Plaintiff was [paid a fixed rate of £30,000 per annum
for 4 weekly invoices plus VAT over 52 week since October, 1998.
33. I
accept Mr. O'Reilly's evidence. There is nothing in those facts which would
indicate any change in the employment status of the Plaintiff.
34. The
matters which the Plaintiff points to as indicating that his status has changed
to that of an employee under a contract of service were varied. I have already
said the agreement to pay £30,000 per annum to be invoiced per week was
not the salary of an employee but an agreed fee for a free lancer presenter.
The change in his hours and change in remuneration from time to time did not
change his status. There was never a re-negotiation of the working
relationship between the Plaintiff and the Defendant. There was one period of
6 to 8 weeks around September, 1997 when he helped Bryan Adams (Head of Music)
on a Thursday for 6 to 7 hours and gave 8a hand with schedules. The Plaintiff
agreed there was not an additional 20 to 25 hours per week as set out in his
Affidavit. There were also weekly play list meetings lasting one to one and a
half hours to decided what new songs would be added to the station list to
which all Presenters were invited.
35. The
6 weeks period of extra work for which he did not get paid not alter the status
of his employment. Apart from that 6 week period his duties over the few years
as a Radio Presenter remained the same. It was a case of being offered
different slots which he took. He was not told what to say or how to say it. He
performed as a Presenter.
37. In
a similar vein it is the claim that when the Plaintiff was called for jury duty
in October, 1998 the music programme manager wrote to the County Registrar
referring to him as an employee and asking that he be excused from duty "as a
member of our on-air staff'. This claim has no weight at all. Neither does the
claim that he attends staff parties. As to attendances at staff meetings, Mr
O'Reilly says that since he became CEO there have been no staff meetings.
38. I
accept the Plaintiffs assurances that he does not work for his girlfriend's PR
company and that the assistance that he gives is minimal and he is not paid for
it.
39. Taking
into consideration the cases cited (In Re: Sunday Tribune [1984] IR 505,
Denny -v-Minister for Social Welfare [1998] 1 IR 34 and Tierney -v- An Post
[1999]
40. E.L.R.
293), I do not accept that any of the facts add up to a change in the
Plaintiff's status as a independent contractor from the time he was first taken
on by the Defendant in March, 1997.
41. The
second issue is whether, if he continued as an independent contractor, Clause
17 continued to apply to the working arrangement between the Plaintiff and the
42. Defendant
as being a dispute in connection with the subject matter of the agreement. It
was submitted on behalf of the Plaintiff that even if the Plaintiff continued
as an independent contractor, the contract did not continue but was
re-negotiated. It was submitted that there was no written arbitration agreement
and therefore it fell outside the definition section of the Arbitration Act,
1954.
43. However,
there is a written arbitration clause in the contract of 8th April, 1997 and
the question is whether that clause as well as other clauses in the agreement
continue to
45. Accordingly,
I consider the contract between the parties to be a contract for services which
continued to be subject, on a roll-over basis, to implied conditions similar to
those contained in the original contract, including the arbitration clause
concerning disputes in connection with the subject matter of the agreement. It
is therefore appropriate to stay these proceedings so that the matter can be
referred to arbitration.