Employee who took court case will still get payment
Published 14/12/2010 | 05:00
JOHN Foy was one of 90 AIB traders who took action against the bank after they failed to get their 2008 bonuses.
The bank ceased paying bonuses after a government-appointed committee recommended that no bonuses be paid for 2008 and 2009.
Employees of the capital markets division, where Mr Foy worked, were told several times that the bonuses were being deferred. More recently, they were informed that the bonuses were being deferred indefinitely.
This prompted a number of legal actions -- the estimated aggregate value of the legal claims rose to about €10m.
Mr Foy's claim, which was seen as a test case for other claims, came before the High Court on November 3.
As a foreign exchange dealer in AIB's capital division, Mr Foy, of Newhaggard Lane, Trim, Co Meath, was employed in 2005 on a basic salary of €75,190 a year.
In court, his legal team claimed the failure to pay the 2008 bonus, of over €160,000, was causing him and his family "unjustified hardship" as it formed most of his remuneration.
Mr Foy had been told by his line manager in January 2009 that he would be due a bonus of €160,000, which was due to have been paid the following month.
After the High Court ruled that Mr Foy should be paid his bonus, AIB Capital Markets confirmed that it would be paying out all of the bonuses as required.
The decision, which would see the bank handing out a total of €40m in bonuses provoked public outrage in the same week that €6bn of cuts and taxes were announced in Budget 2011.
Now, the board of AIB has confirmed that it will not be paying the bonuses. However, because of the High Court ruling, Mr Foy will still get his.
It is understood that Mr Foy no longer works for AIB. He first joined the bank in 2005, having graduated from UCD in 1995 with a commerce degree and a masters in business.
Speaking to reporters at Mr Foy's home at the weekend, a woman said: "He has nothing to say about the bonuses and neither do I."
Efforts to contact Mr Foy at his home last night were unsuccessful.