A man appointed chief executive of Unidare plc in 1994 - who has a salary of almost €250,000 plus benefits - has taken High Court proceedings against the firm over his purported dismissal due to come into effect later this year.
Mr Paul Duggan (44) said he was annoyed, disappointed and upset when told last November that his employment would cease by reason of redundancy.
He was also told he would remain as a company employee for a further 12 months and would continue to be paid his salary and benefits but would not be required to go into the office.
Mr Duggan is seeking several reliefs including a declaration that he is and remains chief executive and is entitled to all powers associated with the post.
He also wants an order preventing the firm from interfering with, modifying or altering his position as chief executive save in accordance with his contract and a further order that the purported termination of his employment on November 14th last was void and of no effect.
Mr Mark Connaughton SC, for Mr Duggan, said Unidare's business was primarily in the US, Britain and Holland and its turnover was about €230 million. Its registered office was at Clonskeagh, Dublin.
In its defence to the action, Unidare pleads it was determined in November that it was unnecessary for it to have a single person on a very high salary in the role of chief executive.
It admitted that certain chief executive functions would in future be carried out by the chairman, acting in an executive capacity, and the chairman of the US subsidiary, acting as executive chairman.
The company pleads also that giving Mr Duggan one year's notice of his intended dismissal was fair and reasonable in all the circumstances. It also submits that it was open to the company to continue to pay Mr Duggan his salary and benefits during his period of notice and not require him to carry out any functions during that period.
Mr Duggan claims it was an implied term of the contract between him and the company that in the event that his contract was lawfully capable of termination, that not less than two years' notice would be given and that the company would act in good faith and only seek to terminate his contract on valid grounds.
Mr Duggan claims that at all material times he successfully discharged his functions as chief executive with the effect that the company had become increasingly successful in its operations worldwide.
In evidence, Mr Duggan said his salary, since last January, was €247,200. He also participated in a bonus plan. Last year, he had been paid a bonus of €83,000 gross. He also participated in a pension scheme and had a company car and share options.
The company employed 850 people - 330 in North America, 50 in the UK and the balance in Holland. Overall group management was located in Dublin and up to last September five were employed there.
When told in November his employment would cease, he did not think he had had a fair hearing. He did not feel that the compensation or notice period being given was reasonable.
He believed the decision in relation to him had been made before the meeting of November 15th last.
Cross-examined by Mr Paul Gardiner SC, for Unidare, Mr Duggan said he believed a fair agreement would be for more than one year's salary. The option put to him was for "gardening leave".
The hearing, before Mr Justice Kelly, continues today.
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