Founder of Breast Cancer Clothing Line Wins €85,000 in Constructive Dismissal Case
Breast cancer clothing company founder receives €85,000 compensation following discontinued wage payment
Ciara Donlan, the founder of Theya Healthcare Ltd—a clothing line specializing in post-surgery garments for breast cancer patients—has been awarded nearly €85,000 following a tribunal ruling that she was constructively dismissed.
The ruling came after an "aggressive takeover" of her originally profitable company in 2023, which resulted in the liquidation of the original entity and the formation of a new company, Theya Healthcare Ltd, by the Gallagher family.
Key background points include:
- Donlan established the brand over a decade, focusing on clothing to assist women recovering from breast cancer surgery.
- In January 2023, two angel investors triggered a liquidation despite the company's profitability. The key assets were bought by the Gallagher family, involved in manufacturing medical garments in China.
- The new owners offered Donlan a CEO role with a 40% shareholding. Her original €110,000 salary was altered to €90,000 plus €20,000 in "off-the-books" expenses.
- Despite requests, Donlan was not given a written CEO contract, with a Gallagher family representative dismissing the request.
- Production of Theya's product line at the Gallagher family's factories in China was marked by persistent delays, affecting customer relations and sales. Donlan’s efforts to resolve these issues were met with evasive replies, making management "nearly impossible."
During the tribunal hearing, which was under the Unfair Dismissals Act 1977, the Payment of Wages Act 1991, and the Terms of Employment (Information) Act 1994, the adjudicator, Breiffni O'Neill, found that there was no lawful justification or mutual agreement to hold back or suspend Donlan's pay, deeming it a "fundamental repudiation of the contract by the respondent."
The adjudicator awarded Donlan €67,500 for nine months' pay for her losses, and a further €10,000 to cover her unpaid salary under the Payment of Wages Act 1991. He also awarded €6,923 as compensation for the failure to provide a contract of employment, in breach of the Terms of Employment (Information) Act 1991.
The case represents a dispute where a founder was sidelined and financially penalized during a contested takeover and restructuring, without formal contract protections and amid operational difficulties under new ownership. The company, Theya Healthcare Ltd, was not represented during the tribunal hearing.
- Ciara Donlan, an entrepreneur in the field of science, specializing in medical-conditions like breast-cancer, founded Theya Healthcare Ltd, a profitable business that focused on post-surgery garments for breast cancer patients.
- In 2023, despite the company's success, two investors triggered its liquidation, and the Gallagher family, involved in manufacturing medical garments, bought key assets to form a new business entity, Theya Healthcare Ltd.
- Despite offering Donlan a CEO role with a 40% shareholding and a reduced salary, the Gallagher family failed to provide her with a written contract, disregarding her requests.
- A series of production delays under the new ownership, affecting customer relations and sales, made management "nearly impossible" for Donlan.
- The ruling following Donlan's constructive dismissal case highlights the importance of diversity and inclusion in business, particularly in small businesses and startups, where founders' contributions often go unacknowledged and unprotected by formal contracts.
