The Employment Appeals Tribunal (EAT) was incorrect in its finding that the withholding of a bonus payment to several employees of B&Q Ireland due in early 2012 was lawful, the High Court has ruled.

In proceedings brought before the High Court the workers, supported by their trade union Mandate, challenged a May 2014 finding by the EAT that the removal of allowances and bonuses, which had been paid for several years up to early 2012, was not a deduction of pay in breach of the Payment of Wages Act 1991.

The High Court case centred on the company’s 2012 decision to remove summer and winter bonus payments, amounting to 6 per cent of an employee’s annual salary, plus zone allowances of 41 cent per hour for Dublin-based workers. The workers had argued there was no unilateral right to change the pay of employees. The application was opposed.

Mr Justice Paul McDermott said he was satisfied the EAT had erred in law in holding the withholding of the bonus for January 2012 was lawful, but accepted B&Q was entitled to terminate the scheme from January 2012. He adjourned the matter to February when all outstanding matters will be dealt with.