Value Proposition canvas- Customer needs and pains
Working Within The Law (Ireland) Hr Compliance And Nera
1. Consulting Excellence
HR & Management Solutions
Consulting Excellence
HR & Management Solutions
Human Resources
A practical guide to working
within the Law
Jackie Prendergast
2. Consulting Excellence
HR & Management Solutions
1. Employment Compliance and NERA in
Context.
Employment Compliance Environment
NERA – what is happening now
NERA and the future of employment
compliance
Key recording requirements
Impact and penalties
AGENDA
Consulting Excellence
HR & Management Solutions
3. Consulting Excellence
HR & Management Solutions
2. The Rights and Wrongs of Redundancies
Overview of Redundancy legislation
requirements
Guidance on how to get redundancies
right the first time
Selected case studies from recent
employment tribunal decisions
AGENDA
Consulting Excellence
HR & Management Solutions
4. Consulting Excellence
HR & Management Solutions
Employment compliance is not new!
How many pieces of legislation to you think
impact the employment relationship?
Employment Compliance Environment
Consulting Excellence
HR & Management Solutions
5. Consulting Excellence
HR & Management Solutions
What are your main responsibilities?
Written statement of terms and conditions of employment
Written statement of pay or ‘payslip’
A minimum wage
Unpaid breaks during working hours
Annual leave from work
Minimum amount of notice before dismissal
Maintain records
Employment Compliance
Consulting Excellence
HR & Management Solutions
6. Consulting Excellence
HR & Management Solutions
Established on an interim basis by the
Government in February 2007
Arose from a commitment under Towards 2016
Replaced and built upon Labour Inspectorate
Facilitates joint investigations (Revenue / DFSA)
NERA – What is happening now?
Consulting Excellence
HR & Management Solutions
7. Consulting Excellence
HR & Management Solutions
NERA aims to secure compliance and to foster
a culture of compliance through five main
functions:
Information
Inspection
Enforcement
Prosecution
Protection of Young Persons
NERA – What is happening now?
Consulting Excellence
HR & Management Solutions
8. Consulting Excellence
HR & Management Solutions
Under current powers NERA can:
Enter any premises at a reasonable time
Demand sight of records
Inspect records
Take copies of records
Interview and require information from any
relevant person
NERA – What is happening now?
Consulting Excellence
HR & Management Solutions
9. Consulting Excellence
HR & Management Solutions
Calls etc 2008 - 27,900 Q1 - 4,570
Up 96% on 2007, 46% on Q1 2008
4629 breaches of employment law
Recovered €3 million, Q1 - €471,328
Highest number of inspections – catering
Minimum Wage & OWT
NERA – What is happening now?
Consulting Excellence
HR & Management Solutions
10. Consulting Excellence
HR & Management Solutions
Practices uncovered / problems encountered
include:
No records or failing to produce
Falsifying records
Working over limit
Paying for less hours than worked
Paying less than minimum wage
Not providing payslips
Making unlawful deductions
NERA – What is happening now?
Consulting Excellence
HR & Management Solutions
11. Consulting Excellence
HR & Management Solutions
NERA, Directorate and Tripartite Advisory
Board
Strengthening powers of inspection
Taking of evidence on oath
Greater access to premises, personnel and data
Empowering NERA to prosecute summary
offences
Examine employment permits
NERA – The future
Consulting Excellence
HR & Management Solutions
12. Consulting Excellence
HR & Management Solutions
Joint investigations (Revenue Commissioners,
Social Welfare inspectors and An Garda
Síochána)
Introduction of 23 new criminal offences
Greater penalties
up to €5,000 and/or 12 months’ imprisonment for
summary offences
€250,000 and/or 3 years’ imprisonment for
indictable offences
NERA – The future
Consulting Excellence
HR & Management Solutions
13. Consulting Excellence
HR & Management Solutions
Introduction of “fixed payment notice” for non
display (€500-€1000)
Protection of whistleblowers
Comprehensive list of documents (last 3 yrs + 2
yrs)
Payment of costs of investigation
Name and shame
Personal liability for officers
Resolution of disputes (statutory obligation)
NERA – The future
Consulting Excellence
HR & Management Solutions
14. Consulting Excellence
HR & Management Solutions
Employer registration number
Full Name, Address and PPS Number
Copy of written terms and conditions of
employment for each employee
Employees’ job classification
Start (and end) dates
Key Recording Requirements
Consulting Excellence
HR & Management Solutions
15. Consulting Excellence
HR & Management Solutions
Payroll details
Copies of Payslips
Hours of work for each employee
Holiday / public holidays entitlement and taken
Board / lodgings
Register of employees under 18
Key Recording Requirements
Consulting Excellence
HR & Management Solutions
16. Consulting Excellence
HR & Management Solutions
Protection of Young Persons - €1500 on
summary conviction
OWT - €1500 on summary conviction + money
due
Parental Leave - Compensation up to 20 weeks
pay
Minimum Wage - £1,500 on summary
conviction and/or up to 6 months, or on
conviction on indictment, up to £10,000 and/or
up to 3 years
Impact and fines
Consulting Excellence
HR & Management Solutions
17. Consulting Excellence
HR & Management Solutions
Carer’s Leave – up to €3000 on summary
conviction
Employees (Provision of Information &
Consultation) – up to €3,000 on summary
conviction and/or up to 6 months or up to
€30,000 on conviction on indictment and/or3
years
Payment of Wages €1200 for non-compliance
or obstruction + monies due
Impact and fines
Consulting Excellence
HR & Management Solutions
18. Consulting Excellence
HR & Management Solutions
Additional under new bill
Additional recording requirements
Criminal offences
€5000 summary conviction - €250000 on
conviction on indictment
On conviction can be disbarred from being
Director
Impact and fines
Consulting Excellence
HR & Management Solutions
19. Consulting Excellence
HR & Management Solutions
Employment Compliance is not new
Existing recording requirements
NERA have powers now
New legislation means:
Increased recording
Increased fines
Shared information and joint investigations
Criminal offences
Can be removed as Director
Summary
Consulting Excellence
HR & Management Solutions
20. Consulting Excellence
HR & Management Solutions
If you or your clients are unsure of your level of
compliance it is time to get your house in
order!
Action
Consulting Excellence
HR & Management Solutions
Editor's Notes
Whilst the full contract does not have to be in writing, certain terms and conditions of employment must be stated in writing within two months of the employee starting employment. These would typically include the method of calculating pay and whether or not there is a sick pay scheme in operation. (For fixed term employees it would also include in what circumstances their employment will come to an end.)
The payslip should set out gross pay and list all deductions made from it.
Most experienced adult workers in Ireland are entitled to be paid €8.65 per hour. There are however, some exceptions to the minimum wage, including those employed by close relatives, those aged under 18 and trainees or apprentices.
There are also certain industries in Ireland where a higher minimum wage applies, including the construction industry. Further information on these industries is available from our industry specific pages.
A maximum working week average of 48 hours a week The maximum 48 hour week is based on an average calculated over a four, six, or twelve-month period depending on the industry. Employers must keep a record of how many hours an employee works.
Workers have the right to a 15-minute break if working four and a half hours of work and a 30-minute break if working six hours of work.
Full-time workers have the right to four working weeks paid annual leave per year. Part-time workers have the right to a proportional amount of annual leave based on the amount of time they work.
Workers are entitled to a minimum amount of notice if their employment ceases. The minimum amount of notice depends on the length of service.
As an employer, it is important to maintain records in relation to your employees and their entitlements and it is in your interest to do so. Keeping these records means that you will be prepared should a NERA inspector call and provides evidence that you are compliant with employment rights legislation.
NERA’s powers come from the following legislation:
Protection of Young Persons (Employment) Act, 1996
The Organisation of Working Time Act, 1997
Parental Leave Act, 1998
National Minimum Wage Act, 2000
Carers Leave Act, 2001
Redundancy Payments Acts, 1967 to 2003
Employment Agency Act, 1971
Protection of Employment Act, 1977
Protection of Employees (Employers’ Insolvency)
Payment of Wages Act, 1991
Employees (Provision of Information and Consultation) Act 2006
Scope includes entitlements :
under legislation
Employment Regulation Orders (EROs)
Registered Employment Agreements (REAs)
62 currently
Sectors include Structural Steel, Grocery and Provision Trade, Motor Trade, Drapery and Allied Trades, Construction Industry, Electrical Contracting Industry
Q1 - 4,570calls, interviews and inspections
Increase of over 46% on Q1 2008
Recovered arrears due totalling over €471,328
Highest number of inspections – catering
Biggest arrears recovered – constructions & catering
Minimum Wage & OWT
Largest number of inspection – Protection of Young Persons
Sample instead?
Proposed changes to Bill include:
removal of a number of proposed criminal offences;
removal of the fixed-payment notices provision;
clarification of the provision requiring employers to display notices in the workplace informing employees of their entitlements and NERA's contact details. It is now proposed that NERA will supply template display notices in appropriate languages and that these notices may be displayed by electronic or other means. This change takes account of the practice of many employers of displaying notices via intranet systems, and allays concerns regarding the form of the notices and the possibility that employers could be at risk of prosecution in circumstances where such notices were removed by third parties;
amendment of the mandatory provisions regarding the provision of statements of employment (similar to a reference) to employees upon their departure – these statements will now be required only if requested;
amendment of the bill so as to require employers to keep a copy of any employment permit granted to any of their employees, rather than a copy of every employee's passport or other identity document. This provision had been seen as unnecessarily burdensome. The minister also stated that the provisions on the Employment Permits Acts will also be clarified to assist their operation and enforcement.
Payroll details (Gross to Net, Rate per hour, Overtime, Deductions, Shift and other Premiums and Allowances, Commissions and Bonuses, Service Charges, etc.)
Protection of Young Persons - €1500 on summary conviction - €250 if continues to contravene for each offence
OWT - €1500 on summary conviction - €500 for subsequent offences, Directors, secretary, managers of Body corporate liable
Minimum Wage €200 - €1000 for subsequent offences – Directors etc liable
Carer’s Leave – Directors etc liable
Employee consultation – more than 50 employees – further offences €500 summary, €5000 on indictment
