Construction CEO Awarded €180,000 After Dismissal Over Director Payments

The chief executive of Derrin Group Management Ltd has been awarded over €180,000 by the Workplace Relations Commission (WRC) after being dismissed following objections to payments made to a director whereas subcontractors remained unpaid. The case highlights a conflict between prioritizing creditor payments and alleged self-dealing within the construction firm.

Details of the Dismissal

Conor Gilligan, the former CEO of the Co Kildare-based company, was dismissed without notice from his €200,000-a-year position at a shareholders’ meeting in November 2024. RTE and The Irish Times reported on the WRC’s ruling.

The Dispute

Gilligan’s dismissal stemmed from his opposition to payments totaling €1 million and €2.3 million made to Teamport Ltd, and ultimately to the personal account of a director within Teamport. This occurred at a time when subcontractors were experiencing delays in payment, leading some to halt work on projects. Gilligan directed the company’s chief financial officer to prioritize payments to construction creditors over other expenditures, a decision supported by a board meeting in September 2024.

Concerns Over VAT Payments

Further complicating the situation, Gilligan also raised concerns about outstanding Value Added Tax (VAT) payments. He identified a current liability of €2.6 million and a pre-existing “legacy” debt of €3.6 million owed to the Revenue Commissioners. His attempts to convene a board meeting to address these VAT issues were reportedly blocked by the director receiving the disputed payments.

WRC Findings

The WRC found that Derrin Group Management Ltd failed to provide any justification for Gilligan’s dismissal. Adjudication officer Bríd Deering stated that Gilligan’s conduct was “beyond reproach” and that the company did not demonstrate “any grounds, let alone substantial grounds, to justify the dismissal.” The three directors of Teamport were identified as the decision-makers behind Gilligan’s removal, though none attended WRC hearings citing personal or family health matters – without providing medical evidence.

Award Details

The WRC awarded Gilligan a total of €183,426.28, comprising €125,581.94 for future losses related to his new employment and €57,844.28 for six months of unpaid contractual notice.

Background on Key Players

Conor Gilligan served as CEO of Derrin Group from October 2022 until his dismissal. His LinkedIn profile details his experience in contracting, consulting, and project management. Teamport Ltd held a 50% ownership stake in Derrin Group and provided €15 million in loans to the company.