Claddagh ring jewellery company ordered to pay €10,000 compensation over the unfair dismissal of a shop manager

4th April 2022

A jewellery company that makes and sells the world-famous Claddagh rings has been ordered to pay €10,000 compensation over the unfair dismissal of a shop manager.

The former manager of Claddagh Jewellers’ store in Dublin, Nima Amjaid, claimed he was dismissed on September 4, 2020 after becoming “collateral damage” in a disagreement between Andrew and Philip Fried – two brothers involved in the family business.

The Labour Court upheld an appeal by Mr Amjadi against a ruling by the Workplace Relations Commission that had dismissed his claim for unfair dismissal.

Mr Amjadi, who had worked in the Nassau Street store for over five years, said he was told by one of the brothers in June 2020 to pack up the contents of the store which had been closed since March 2020 due to Covid-19.

However, Mr Amjadi said he was contacted by the other brother the following month about the firm’s computer system as well as the removal of stock from the shop.

He discovered a few days later that he had been removed from the computer system and the e-mail system for the Dublin store.

Mr Amjadi claimed on September 4, 2020 when he was due to be paid, he received an e-mail telling him that a decision had been taken to suspend his employment.

Mr Amjadi, who was on an annual salary of €33,500, said he was left with no money for food or for travel to see his daughter.

Lawyers for Claddagh Jewellers disputed the claim that Mr Amjadi was dismissed and said he was laid off as the store had been closed since March 2020 due to the global pandemic.

They pointed out that Philip Fried, who had taken over the running of the company from his brother, had paid Mr Amjadi’s wages between June and September 2020 but he was being temporarily laid off which would allow him to claim the Pandemic Unemployment Payment.

Labour Court chairperson, Kevin Foley, said the e-mail contained no explanation about a decision to suspend his employment.

“The mail at issue certainly contained no notice of the sort required of an employer who is engaged in the lay-off of an employee,” said Mr Foley.

He said it was clear that no communication from the company could lead Mr Amjadi to reasonably believe that the cessation of his employment would not be permanent.

The Labour Court also noted that Claddagh Jewellers was unable to clarify how Mr Amjadi could be laid off on September 4, 2020 when it had ceased paying his wages one week earlier.

Ruling in favour of Mr Amjadi, the court said he had been given no indication or assurance that he would be employed again by the company.

Mr Foley said Claddagh Jewellers had undermined the central tenets of the manager’s employment contract without notice or notification as well as ceasing to pay his wages.

The Labour Court concluded that the company did intend to dismiss Mr Amjadi on September 4, 2020 and the decision a week earlier to cease paying his wages was evidence of such an intent.

As the dismissal was not the result of any misconduct by Mr Amjadi, Mr Foley said his dismissal was unfair.

Awarding the claimant compensation of €10,000, Mr Foley said he had failed to demonstrate that he had made significant efforts to mitigate his loss

The court heard Mr Amjadi had only applied for two jobs before January 2021, although he subsequently received three job offers.