Earnings from direct provision parent business propped up failing scaffolding firm, WRC told

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Millions of euro in cash injections which had propped up a failing scaffolding firm had to end last year after a drop-off in State contracts for direct provision hit business at…

Millions of euro in cash injections which had propped up a failing scaffolding firm had to end last year after a drop-off in State contracts for direct provision hit business at its parent firm, an executive has said.

An ex-employee, Therese Sherlock, has alleged the termination of her employment at JRS Scaffolding Ltd on the stated basis of redundancy a year ago was an unfair dismissal.

Sherlock argued at the Workplace Relations Commission (WRC) on Tuesday that assets, contracts and some staff were transferred to a related company, so the company could not say there was a redundancy situation at the firm.

This was denied on behalf of the firm, which was once run by Sherlock’s husband, its former managing director Alan Sherlock, the tribunal heard.

Sherlock’s stance was that the company did not cease trading after her termination, but had instead “amalgamated” with another scaffolding firm, Summit Scaffolding Ltd.

“There was live contracts. They were still carrying out the contracts that they had,” she said.

“They said no staff went over, but they did,” she added. Sherlock gave four names of JRS staff and said five or six in all had gone to Summit.

The firm’s barrister, David Purdue, instructed by Clark Hill Solicitors, said Sherlock’s job came to an end “because of business failure”.

“The business became financially unviable and completely closed down. Scaffolding has to remain in place – if a company ceases trading, the scaffolding can’t be removed from [a building] site,” counsel said.

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