Sauna owner dismissed by hotel awarded €25k

A men’s sauna club owner has been awarded €25,000 after he was unfairly dismissed from his job at a Co Cork hotel.

Eamon Ryan, 44, from Burnscove, Kishykirk, Co Limerick, claimed he was fired from his position as leisure manager at the Charleville Park Hotel because of a “homophobic reaction” to his other business.

During an Employment Appeals Tribunal hearing in Limerick earlier this year, Mr Ryan insisted he was open and honest about the sauna club in Shannon and said he was a director of the business but did not work there.

The tribunal heard he was fired from his €38,000 position at the hotel in Aug 2010 after working there for two years.

The married father took a case of unfair dismissal against Ambassador Court Ltd trading as the Charleville Park Hotel.

He disputed breaching his contract of employment with the hotel by being involved with his other business and further contended the covenant upon which his employer sought to rely on was neither binding nor enforceable.

In her evidence, Niamh Ryan said her husband’s dismissal had a “horrendous” impact on their financial situation and that at one stage the couple had to burn a floor in their house in order to heat their home.

Brendan Comerford, the general manager of the hotel, told the tribunal he received an anonymous phonecall on Jul 29, 2010, advising that Mr Ryan was involved in a business which should “be of interest” to his employers.

Mr Comerford said the issue was with Mr Ryan’s dishonesty and breach of contract and had nothing to do with the nature of his other business.

However, Mr Ryan claimed, during a meeting with management, he was met with a “knee-jerk homophobic reaction”.

Mr Comerford insisted it was Mr Ryan who first referred to the orientation of his clientele at the club and the “pink pound”.

He admitted it was not said in Mr Ryan’s contract a breach of contract was a dismissible offence.

He said Mr Ryan was given the opportunity to give up his shares in the club but refused.

In its determination, the tribunal found that Mr Ryan had no previous disciplinary record and noted his other business did not interfere with his day-to-day position at the hotel.

The tribunal also noted Mr Ryan’s other business activity was 60km away from the hotel in Cork and while “his contract included a restrictive covenant, he was not advised that if it was breached, it could lead to his dismissal”.

The tribunal said it was satisfied the dismissal was unfair and that the claimant was unfairly dismissed.

It concluded that compensation of €25,333 was the “appropriate remedy” pursuant to provisions of the Unfair Dismissals Acts, 1977 to 2007.