A FORMER property development executive whose employer told him he could earn up to €1 million a year with the company is now suing it for unfair dismissal.
Former Newlyn Developments Ltd director, Colm Lundy, opened unfair dismissal proceedings against the company at the Employment Appeals Tribunal (EAT) in Dublin yesterday.
Mr Lundy's employment with the company ended late last year. He was the director responsible for commercial property acquisition and project management, a position which paid €220,000 a year with bonuses. He also had a profit-share arrangement worth a minimum of €80,000 a year.
Before he joined Newlyn in 2004, Mr Lundy was a senior executive with the Irish division of German cut-price grocer, Lidl, where he was widely expected to go on and run the operation.
Correspondence between the parties and seen by The Irish Timesshows that when Newlyn headhunted him in 2004, director George McGarry told Mr Lundy he could earn up to €1 million a year working with the developer.
Newlyn is run by managing director Robert Kehoe and colleagues Mr McGarry and Christy Dowling.
It has worked on commercial, industrial and residential projects and is the company behind a number of high-profile developments. These include Grand Canal Court in Dublin, the Southern Cross industrial park in Wicklow and up-market housing estates in the midlands and the capital.
Lawyers for the company told yesterday's tribunal, chaired by Mark O'Connell BL, that over the last year staff numbers have fallen from over 60 to 13, with further job losses likely as routine site maintenance work on its properties is finished.
They pointed out that Newlyn is not proceeding with work on any of its development sites as it would lose money in current market conditions, and said that for this reason they cannot be sold either.
Newlyn is arguing that the company made Mr Lundy redundant legitimately late last year, as the property market slump meant that his position effectively no longer existed. Its counsel pointed out yesterday that redundancy simply means that an employer has decided to carry on a business with fewer or no workers.
Mr Kehoe told Mr Lundy in writing late last year that his job was to acquire sites. "The property market is in a downturn. There is no reality to Newlyn looking to acquire sites for the foreseeable future. Consequently there is no work for you to do," he wrote.
Mr Kehoe added that the company could not justify keeping him in employment.
Newlyn also argued that the EAT proceedings should not go ahead, as Mr Lundy has already taken a breach of contract action against the developer in the commercial division of the High Court, which he and the company have since settled.
During yesterday's hearing, Newlyn's counsel argued that the only relevant breach of contract was breach of his contract of employment.
However, Mr Lundy's legal team pointed out that the court action was related to his profit-share agreement.
After a brief consultation, the tribunal said that it would hear the action. It will begin hearing evidence next February.
