CEO Awarded €183,000 After Shareholder Dismissal: Governance and Fair Procedure Lessons for Employers
A recent decision of the Workplace Relations Commission (WRC) has highlighted the substantial legal risks that can arise when senior employees are dismissed without clear justification, fair process, or contractual compliance.
A construction company has been ordered to pay over €183,000 to its former Chief Executive Officer after the WRC found there were no substantial grounds to justify his dismissal.
The case is particularly significant for employers dealing with senior leadership disputes, shareholder tensions, financial governance concerns, and whistleblowing-type scenarios.
The Background
The CEO had been appointed in 2022 and earned approximately €200,000 per year.
He raised concerns about company financial practices during 2024, including:
Subcontractors not being paid, leading to work stoppages
Large payments being made to a shareholder-linked director
Concerns regarding delayed VAT payments
He directed that payments to suppliers be prioritised — a decision supported at board level.
Shortly afterwards, shareholders initiated steps to remove him.
He was dismissed without notice at an extraordinary general meeting.
What the WRC Found
Adjudication Officer Bríd Deering concluded the employer had:
❌ Failed to present evidence of any valid grounds for dismissal
❌ Failed to provide fair opportunity for the CEO to respond to allegations
❌ Failed to pay contractual notice
❌ Failed to properly engage with WRC proceedings
In a strong finding, the adjudicator stated the CEO’s conduct was:
“Beyond reproach.”
The dismissal was ruled unfair.
Breakdown of the €183,000 Award
The compensation reflected both statutory and contractual breaches.
€125,581.94 for financial losses following dismissal
€57,844.28 for unpaid contractual notice
This demonstrates how dismissals involving senior executives can quickly result in very high exposure, particularly where contractual protections are involved.
Key Employer Risks Highlighted
This case underscores several recurring themes in high-value employment disputes.
1️⃣ Shareholder Decisions Are Still Subject to Employment Law
Even where shareholders control the company, removing an employee — including a CEO — must comply with:
Employment contracts
Fair procedures
Statutory protections
Corporate governance decisions cannot bypass employment law obligations.
2️⃣ Senior Employees Are Entitled to Due Process
Dismissals involving allegations of misconduct or performance issues require:
✔ advance notice
✔ clear allegations
✔ opportunity to respond
✔ impartial decision-making
Failure to follow these steps can invalidate even strategically motivated dismissals.
3️⃣ Financial Governance Disputes Create Litigation Risk
Disagreements about:
payment priorities
creditor management
cash flow decisions
regulatory compliance
can escalate into employment disputes if not handled carefully.
Employers should seek legal guidance early where leadership conflicts arise.
4️⃣ Contractual Notice Obligations Are Critical
Failure to pay contractual notice can significantly increase liability.
Senior contracts often contain enhanced protections which must be honoured unless gross misconduct is clearly established and procedurally proven.
Lessons for Employers
This decision reinforces that:
✔ Leadership removals must be carefully structured
✔ Boardroom disputes can become employment law claims
✔ Documentation and procedure are essential
✔ Contractual rights remain enforceable
✔ Early legal advice reduces exposure
Even where business relationships break down, employers must manage exits lawfully.
How Ormonde Solicitors Can Help
Ormonde Solicitors advises employers on:
Senior executive dismissals
Shareholder and governance disputes
Protected disclosures and retaliation risks
Contract enforcement
Workplace investigations
WRC defence
Strategic advice at the earliest stage can prevent disputes escalating into six-figure claims.
📞 Contact us today for confidential guidance.
Disclaimer: This article is for general information purposes only and does not constitute legal advice.
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