Cork construction worker secures pay out for SEO non-compliance

A Cork based construction worker secured a decision at the Workplace Relations Commission that he must be paid €2200 by his employer for its failure to include him in the Construction Workers Pension Scheme (CWPS).

Enrolment of workers by their employer in the CWPS is a requirement of the Sectoral Employment Order (SEO) for the construction industry.

SIPTU Organiser, Pearse McCarthy, said: “I first made contact with the subcontractor involved in this case in late 2019 concerning SEO compliance in relation to rates of pay. Eventually union representatives made contact with the main contractor who was very helpful in providing information and assistance to resolve outstanding matters.

“At this time the subcontractor confirmed that it would now comply with the SEO rates of pay and pay all monies owed retrospectively. We also had conversations to explain that the responsibility lies with the employer with regard to all aspects of the SEO, including the registration for CWPS which includes pension contributions, death in service benefit and sick pay.

“A SIPTU member employed by this subcontractor contacted the union in the summer of 2021. He informed the union that no pension contributions had been made on his behalf by his employer. This precluded him from receiving sick pay while on sick leave.

“Following the failure of direct attempts to get the employer to meet its obligations the case was taken to the WRC which recently found in favour of our member.”

Pearse added: “There are huge negatives for workers when they cannot access sick pay. This benefit through the CWPS currently is €44 per day. The sick pay benefits provided by the scheme are in addition to any sickness, illness or invalidity benefits payable by the State through the social insurance system.

“There is also huge negative consequences for families in the event of a worker’s death in service. The death in service benefit is €100,000 when the scheme is complied with.”