Yearly Archives: 2015

Asking to be fired – Why an employer must not adhere to this request

An employee recently requested that his employer dismiss him. When asked why he wanted to be let go the employee explained that he wished to spend more time at home helping his sick wife with the children and assisting with the domestic duties. The employer was considering doing as the employee asked as he felt that the motives behind the request were practical. Asking to be fired, unfair dismissal The employer, however, took a few moments to think about the request. He concluded that the employee had been a diligent worker and so was reluctant to see the employee leave his role. In the hopes that it might encourage the employee to consider changing his mind the employer decided to offer the employee a small pay rise and to be more flexible with him in terms of his working hours. After the employer made the offer the employee became frustrated and again asked the employer to fire him. The employer was confused as to why the employee was so adamant that he wanted to be fired as he had always seemed quite satisfied in his role. The employer also wondered why the employee didn’t simply resign if he wanted to go so badly. The employer decided to seek some advice on the situation prior to making his final decision. After some research the employer realised that this request was a common one and that motives behind this type of request were typically financially-based ones. Asking to be fired, Unfair Dismissal, EAT If an employee leaves employment voluntarily and without a reasonable cause then he or she may be disqualified from getting Jobseeker's Benefit for 9 weeks, however, if the employee is dismissed from employment then he would be entitled to claim benefits earlier. Social Welfare Fraud is a serious offense. The employee became extremely angry when the employer refused to dismiss him. Had the employer satisfied the request and fired the employee the individual could have lodged a case for unfair dismissal. The employer was fortunate that he sought advice after receiving the request from the employee. Due to the fact that the employee had not done anything to warrant his dismissal it is likely that a claim would have succeeded in an Employment Appeals Tribunal scenario – Unfair Dismissal can lead to an award of up to 2 years’ salary. Employers receiving requests along these lines should seek advice from Irish Employment Legislation specialists prior to taking any action.

By |2017-01-02T11:00:24+00:00June 17th, 2015|Asking to be fired|0 Comments

Update on Employers Deducting Local Property Tax (LPT) at source

Some companies have recently received correspondence threatening legal proceedings if they deduct Local Property Tax (LPT) from employees’ salaries. The Revenue Commissioners, however, have confirmed that any legal proceedings will be strenuously contested by the State. Section 65 of the Finance (Local Property Tax) Act, 2012, states that employers are statutorily obliged to comply with any direction that may be issued to them to deduct tax in accordance with the below statutory provision. “Where a liable person is in receipt of emoluments  ... the Revenue Commissioners may direct an employer to deduct, in a period specified in the direction, local property tax payable by the liable person from the net emoluments payable to the liable person by the employer” LPT, Local Property Tax   Further clarification of what Employers need to know regarding LPT:   Any employee who has not yet paid, or started to pay, their applicable Local Property Tax (LPT) will have mandatory deduction at source from salary or pension imposed. Those who failed to submit their LPT return on time or failed to meet the relevant payment obligations by 1st July 2013 are under scrutiny. Employers and occupational pension providers alike are obliged to ensure deduction at source. Revenue should have notified the employers/ pension providers of the outstanding sums via the P2Cs (The P2C is the employer copy of the tax credit certificate in respect of the individual employee). The relevant sum is to be deducted from the employee’s net pay. The employer is to commence deducting the LPT after receipt of the relevant P2C (after July 1st 2013). The relevant P2Cs should have been issued to most employers by mid June 2013. The LPT to be deducted is illustrated at the bottom of the P2C. The deductions must be made on a consistent basis over the 6 month period between July and December 2013. If the employee is paid weekly then the LPT deduction should be made weekly and if the employee is paid monthly then the deduction should be applied monthly. For example if the LPT to be deducted is €300 then an employee who is paid weekly will see €300/26=€11.538 deducted from their weekly net salary (Any rounding should be in favour of the employee) - If an employee owing €300 is paid monthly then he or she is due to pay €300/6=€50 on a monthly basis. Any refunds of LPT will be dealt with by Revenue – Employers are not to make any refunds of this kind. LPT, Local Property Tax, LPT Employer's Responsibilities If the employer receives the P2C detailing LPT after the July payroll has run then the total LPT should be deducted from August through December - the remaining 5 month period. Employers are obliged to keep a record of the applicable LPT that they deduct for Revenue and are required to account for the figures on the Forms P30 and P35 in respect of the employees concerned. The employer is also responsible for recording the appropriate LPT data for employees on their payslips as well as P60’s and P45s. Where there is a Court Order on file prior to the issuance of the P2C this must take precedence over the LPT deduction. However, if the P2C is issued prior to a Court Order being made then the LPT deduction will preside. Where the Court Order and P2C are issued or made effective from the same date the Court Order takes precedence. The LPT payment, however, takes precedence over all non-statutory deductions like Health Insurance. The Employer/Pension provider cannot take an instruction from the employee to stop deducting LPT from his or her salary – the employer is obliged to deduct the applicable LPT until the P2C shows that no further payment is due. If an employee would like to pay the relevant tax via a different method he or she should contact the LPT Branch and make these arrangements – then the employer will be issued with an updated P2C telling them to stop the deduction from pay/pension. Similarly if the employee feels as though there is a discrepancy in the amount of LPT they are being charged he or she should discuss this with the LPT Branch not the employer. If an adjustment needs to be made to the P2C then a revised directive will be issued to the employer – until such a directive is received the employer should continue to deduct the original LPT figure. According to Revenue “Where there are shortfalls due to insufficient net salary in a particular pay period(s) the employer should adjust the amount of LPT to be deducted per pay period (for the remaining pay periods in the year) to ensure the full amount of LPT is collected by the end of the year. Once this is done, the employer will not be required to notify Revenue about the shortfall. However, employers must notify Revenue in writing (e.g. by Secure Email to employersLPT@revenue.ie) where there will be insufficient income to satisfy the employee’s full LPT liability for the year, based on the expected income for the employee.” Revenue has established a helpline for employers and pension providers alike to assist with their queries on how this LPT deduction at source will operate. The Employer Helpline is 1890 25 45 65.

Former Employee Awarded €58k for Unfair Dismissal

Unfair Dismissal, Unfairly Dismissed On the basis of a decline in sales within an exhaust business the Finance Director decided that a redundancy was required. There were 4 employees who generated sales for the company. The Finance Director believed the company only required 3 people to perform the sales roles. The 4 individuals were informed that their positions were at risk and they were given a copy of the selection matrix that was used to determine who would be made redundant. The 4 employees all agreed that the matrix (after a slight amendment suggested by one of the employees concerned) was a fair and equitable way of assessing them. The sales director scored the matrices. The employee who scored the lowest was informed that he was to be made redundant. The employee who was made redundant contended that the selection process had not been fairly operated. The Finance Director had not raised the issue of the exhaust centre’s declining profitability with him before deciding to make someone redundant. He was not told his sales were down. The employee who was made redundant was at a disadvantage because the 3 other employees had a closer affinity with one another than with him and therefore he scored lower on team work. While the employee who was made redundant did not object to the selection matrix – he did, however, feel as though it had not been scored fairly. His extensive product knowledge was not taken into account. Also not taken into account was his City & Guilds qualification. Unfairly dismissed, unfair dismissal, fired After his redundancy the employee learned that the company had a new operation in Cork. A former employee was recruited to manage the new operation. The claimant was not told about the new operation or asked to apply for any of the jobs there. The claimant established loss for the Tribunal. The Tribunal carefully considered all evidence in the case. It was clear that management did not speak to the employee when they determined that his position was not profitable. When it came to the process of selecting an employee for redundancy, the method chosen put the employee at a distinct disadvantage. The Tribunal found that the selection process was unfair and therefore the dismissal of the claimant was unfair. The claim under the Unfair Dismissals Acts 1977 to 2007 succeeded and the claimant was awarded the sum of €58,000.00 in addition to any payment he had already received.

By |2017-01-02T11:00:23+00:00June 17th, 2015|Award|0 Comments

The HR Company – Who we are and what we can do for you

We provide a virtual employment law service over the phone and on email.  It entails making sure your business is compliant at all times.  We issue contracts of employment, handbooks, handle disputes, issue warning letters and basically offer a 24/7 helpline. We provide an unlimited service with regard to any issues in the workplace.

 

We are a long established Irish owned ‘HR Compliance’ Company, specialising in Employment Law and Legislation, we are based in Sandyford, Dublin with 23 staff.

 

We support small to medium sized companies in ensuring that your business is compliant from an employee perspective, therefore keeping you legal. We protect you and act as your eyes and ears on all Irish Employment Law issues.

 

The Cost of the service is €99+vat per month up to 30 employees and thereafter €3.50 for each additional employee minimum subscription of 1 year.   

 

There is a once off set-up administration fee of €200 +vat.  This is normally issued via cheque.

 The HR Company, Hr Outsourcing Hr Support, Irish SMEs

In summary, we support associations by providing you with customised and personal advice on any Employment Law issues 24 hours a day, 7 days a week.

 

·       We handle all Grievance Issues in the work place

·       We manage all work associated with reducing working hours and any redundancies

·       We interpret all employment legislation where we deliver all Disciplinary recommendations, we will even write the disciplinary letters for you. These will be customised, we do not work with samples or templates. What you will receive on email will be the final document, you will not have to make any edits or changes

·       We will guarantee you are NERA compliant

Did you know? - That NERA inspectors are currently carrying out investigations to ensure that businesses are compliant with employment law legislation and that labour inspectorates have the right to request access to employment records such as, Hours of Work, Public Holiday Benefits, Annual Leave, Wage Sheets and Legally Compliant Contracts. 

Non compliance can result in fines ranging from €650 to €1,900 depending on the offence with a proposal currently in place for the maximum fine to be increased to €5,000 and/or imprisonment of up to 12 months and summary conviction or a maximum fine of €250,000 and/or imprisonment of up to 5 years and indictment.  

The Hr Company, Irish Employment Law Specialists, Hr Support Services Ireland

·       We will answer any question of employee legislation ie what rights does an employee have under the Maternity leave act/Parental leave act/Force Majeure/Compassionate leave/Part-Time / Casual workers and their rights!

·       We will manage any conflict in the organisation

·       We manage Bullying & Harassment in the workplace

·       We handle all Performance Issues and provide recommendations on what to do.

·       Negotiation with Trade Unions

·       Dealing with the LRC (Labour Relations Commission)

·       We will issue all contracts of employment and email to you, these will be customised and again not samples.  Every time you hire new people, you just let us know and we will have a Contract of Employment for them within 24 hrs.

·       We will write an Employee Handbook specific to your business, we do not use ‘one suits all’

Your dedicated account manager is available to your for advice and support on all HR issues whenever you need to ask a question.

Why not get your HR documents audited by one of our specialists free of charge and avail of a complimentary 1:1 (no obligation) Irish Employment Legislation consultation at your premises?

In this extrememly litigious era where employees know their rights insulate your company and treat yourself to peace of mind by availing of our free consultation -

 

 

 

 

Please note all our legal documents ie Contracts of Employment and other documents are all copyright protected and will be issued in PDF format only

By |2017-01-02T11:00:28+00:00June 17th, 2015|Policies & Procedures|0 Comments

Managing Training Administration for Multinationals

We all know how important it is to get the right people to the right place at the right time – this becomes even more of an issue when it comes to business. In fact, it is absolutely critical to get the balance right where business is concerned.

Organising people is not an art form – but it can be extremely delicate work at times. Ensuring employees have everything they need when they get where they are going is an even trickier task. This is the very reason we provide training administration management services for multinationals and large companies in Ireland.

Once you have analysed and planned your company’s specific training needs The HR Company will fully administer your entire training process…. from the scheduling of people, to the scheduling of venues and equipment. We even assess programme content and provide outstanding maintenance of training records. Managing Training Administration Some of our services are listed below: • Management of all training vendors •Scheduling of training programmes •Management of training venues and facilities •Maintenance and administration of training records •Feedback assessment of programme content •Establishment of a single point of invoicing for training programmes •Succession planning •Tailored generation of reports and statistics If you have any queries at all please do not hesitate to get in touch.

HR Guidance for Childcare Facilities in Ireland

Crèches in Ireland have come under intense scrutiny in recent weeks. On the 28th of May 2013 the Prime Time Investigates programme “A Breach of Trust” highlighted grave mishandling of infants in the care of a number of crèches in the Leinster region. While the programme uncovered substandard care in three specific childcare facilities it exposed widespread failures in the industry in general. The programme researchers acquired a HSE inspection report that illustrated that a staggering 75% of Irish childcare facilities were in breach of regulations in 2012. Understandably, these statistics caused uproar and opened up a huge debate on childcare standards throughout the nation. Many parents were very upset by the revelations of breaches in child protection regulations. The poor practices exposed in certain crèches distressed many people and the disturbing reports have seriously tainted the image of the childcare industry in Ireland. Crèches in Ireland, childcare facilitiesSubsequent to the Prime Time Investigates programme there have been two reported incidents of unaccompanied toddlers leaving crèches in Dublin while in the care of employees at the facilities. The most recent of these incidents occurred last Friday, 21st June, where two little boys made it out of a Giraffe Crèche on the North side of Dublin. The boys were lucky to have been spotted before they made it as far as the busy road behind the building. These revelations have again raised serious concerns and the childcare industry will have to work hard in order to earn back the trust of parents. In order to protect their reputation it is absolutely vital that management in childcare facilities take the steps necessary to ensure that all employees are fully qualified for the roles in which they have been hired. It is imperative that all employees working with children are vetted thoroughly and that all relevant paperwork is in place. The HSE report from 2012 highlighted serious policy breaches and failures on numerous grounds like the child-carer ratio. It is imperative that employers seek advice from Employment Legislation experts if they need clarification on policies and procedures that they are required to have in place or if they need help in determining whether or not they have the appropriate paperwork on file. The National Employment Rights Authority (NERA) is carrying out inspections to ensure that all employers have contracts of employment in place with their employees as well as employee handbooks and so on. NERA seeks to ensure that employment paperwork is up to date with all of the recently implemented employment legislation changes. NERA inspectors can impose large fines if they find that employers are in breach of the regulations. It is essential that all facilities are adequately staffed and that management take every precaution in ensuring a high standard of protection and care for children at all times. One suggestion perhaps might be to install a CCTV system to monitor the interaction between employees and children – before doing so, however, a CCTV policy is required – again, it is essential to seek advice from the appropriate body if you are considering such a course of action. Creches in Ireland, Childcare facilities in Ireland, Mishandling of infants Reports suggested that multiple employees were suspended and at least one dismissed after the Prime Time Investigates programme aired in May of this year. Employers need to remember that, to avoid any risk of exposure, it is absolutely imperative to follow approved disciplinary procedures prior to disciplining employees. Regardless of the severity of the situation there are steps that need to be followed in order to ensure employers remain compliant with all Irish Employment Legislation. It is vital to follow procedures that are in line with the Labour Court recommendations to insulate your company against the risk of a future claim. To avoid jeopardising the process contact an Employment Law expert prior to initiating any disciplinary action and arm yourself with the appropriate guidance. childcare facilities in Ireland, Children being mishandled in Crèches

By |2017-01-02T11:00:26+00:00June 17th, 2015|HR Guide|0 Comments

Age Discrimination and the Benefits of having a Retirement Policy

Age Discrimination - Retirement Policies

The issue of age discrimination has become a significant one in Ireland in this extremely litigious era – it is imperative that employers are very careful in all they say, write and do in relation to age if they aim to avoid a discrimination claim. 

Discrimination is defined as the treatment of one person in a less favourable way than another person in a comparable situation on any of the nine specific grounds. It covers not only current and past discrimination but also discrimination that may exist in the future or is imputed to a person.

The Employment Equality Acts 1998-2011 prohibit discrimination in employment based on a person’s age as well as eight other grounds (gender, civil status, family status, sexual orientation, religion, disability, race and membership of the Traveller community). The Equality Authority, in some instances, will provide assistance to individuals who feel as though they have been discriminated against in their employment.

The Equality Tribunal is charged with investigating alleged discrimination on any of the nine grounds and ensures the relevant employment legislation is implemented correctly. The Equality Tribunal can enforce a means of redress or compensation in favour of the employee.

Discrimination based on age commonly occurs at the recruitment stage and in the course of the interview and selection process. The Acts outlaw discrimination in job advertisements and therefore employers need to be extremely careful when drafting such advertisements. An employer cannot seek a “young and dynamic employee” as this excludes several candidates who are not “young” – all interested parties should have equal right to be considered for the role. Similarly, employers should not make it compulsory for applicants to provide their age or date of birth when applying for a job.

It is also frequent in the area of promotion or in redundancy scenarios. An employee cannot be made redundant in order to make way for a “younger” employee.

Retirement Policy - Forced Retirement - Retirement Age

Employers are entitled to implement certain policies under the Acts, for instance, an employer may set a minimum age requirement (not more than 18 years of age) for potential applicants for a job. The employer can also set a compulsory retirement age but this must be clear and fair for all employees based on their role.

In relation to retirement ages an employer should have a policy in place that covers this. He or she should ensure that the compulsory retirement age is referred to in the contract of employment as well as including a very detailed description of the policy in the company handbook – employees should be required to confirm in writing that they have read and accept the employee handbook.

A Retirement Policy should, at a very minimum, confirm the age at which employees must retire. It should also include a timeline detailing what happens in the run up to the retirement date. For instance, when the employee should expect to be advised of their precise retirement date and details of who they should expect to receive this information from.

Some employers will provide that a member of the HR department meets the employee who is set to retire in order to discuss items like outstanding annual leave, handover procedures, return of company equipment, how any benefits or benefits-in-kind may be managed (a company car, for example, if applicable).

Retirement age - Retiring at 65 - Claims

Some companies will also assist the employee who is retiring by providing a pre-retirement course in advance of their departure or by discussing pensions and other financial matters with the individual. It could benefit the employee to meet with a financial advisor in the run up to the employee’s retirement - this is something that the employer could provide. If the employee offers this the option to meet a financial advisor (or similar) it should be detailed in the employee handbook.

The effective management of the retirement process will support the employee in the final stages of their employment with the company and will protect the employer by enabling the appropriate transfer of valuable knowledge from the departing employee to the company.

 

 

Companies may offer a fixed-term contract to a person over the compulsory retirement age but there is no obligation on them to do so.

Often the Tribunal finds in favour of the employee in cases relating to discrimination in the workplace, however, one notable age related case was dismissed by the Equality Tribunal when evidence that the employer had an established policy with regard to retirement age and had included retirement age in the contract of employment was provided.

The relevant case decision number is DEC-E2012-086.

Mr. X argued that his former employer had discriminated against him on the basis of age when he was forced to retire at the age of 65. Mr. X had worked for his employer for more than 10 years prior to turning 65. Mr. X, along with his colleagues, were informed of his departure date via e-mail when an invitation to a social event to mark Mr. X’s retirement was sent out.

Mr. X did not want to retire and argued that he was being directly discriminated against on the basis of his age. The employer refuted Mr. X’s allegation and argued that the retirement age of 65 was a “clear term and condition of the contract of employment of employees and a long-standing custom and practice”.

Pension - retirement age - retirement policy

Mr. X’s claim failed as the Tribunal found that his former employer had a “well established practice of retiring its employees” at the age of 65. In certain instances employees who were over 65 were re-engaged on fixed-term contracts for project purposes but that wasn’t the case in all circumstances and it was not the case with Mr. X.

It was an interesting determination from an employer perspective.

By |2017-01-02T11:00:27+00:00June 17th, 2015|Policies & Procedures|0 Comments

A Tough Issue For Employers – Making Employees Redundant

Lots of difficult situations present themselves for employers on a regular basis - The HR Company aims to assist employers with their challenging role by giving pratical advice on all HR related activities -

Making employees redundant

 

One of our consultants was asked a question by an employer about redundancy -


Unfortunately, with the recent economic climate, my business simply doesn't justify eleven employees anymore. Things have become very quiet for us and I am struggling to make ends meet. I feel I need to get down to approximately seven employees to ride-out the downturn. What is the process that I should follow in order to stay compliant in this situation? 

 

 

The HR Company advice: 

Many companies are finding themselves in similar situations in this economy. Initially, the owner should determine if this quiet period is one that is expected to be short term or longer term. If the quiet period is expected to be for a few weeks or months the owner should consider placing employees on reduced working hours or possibly laying off some staff for the short term.

Alternatively, if the business cannot sustain the number of employees they currently hold, then redundancies will need to be considered. All other avenues should be exhausted prior to making the decision to make positions redundant. There is a strict redundancy selection process that has to be followed when making job roles redundant. Remember that it is the role that is made redundant rather than the employee – One cannot make an employee redundant and then hire a replacement in their role the next day.

Making employees redundant

 

Common employer pitfall:

If a business does not engage with introducing any of these measures with employees in the correct way, the employee may leave the company (i.e. if on a short working week or on lay-off) and claim Constructive Dismissal which could see the employee awarded a large sum. If the correct redundancy process is not followed a former employee may make a claim of Unfair Dismissal or Unfair Selection for Redundancy which can run to high costs for your business in the long run.

 

 

By |2017-01-02T11:00:27+00:00June 17th, 2015|Policies & Procedures|0 Comments

Reminder for Employers: Taxation of Maternity Benefit – July 1st 2013

The Minister for Finance, Michael Noonan T.D., published the Finance Bill 2013 on 13th February 2013. The Bill provided for the Budget day announcement that, effective 1st July 2013, Maternity Benefit, Adoptive Benefit and Health & Safety Benefit payments will be treated as taxable income. As with all other Social Welfare payments; Maternity, Adoptive and Health and Safety Benefit will remain exempt from Pay Related Social Insurance (PRSI) and Universal Social Charge (USC). 

 

taxation of maternity benefit

This measure will mean that women entitled to these benefits will pay the same level of income tax while in receipt of the benefit as they do when they are working.

Once the benefit is approved by the Department of Social Protection, Revenue will be notified of the applicable figure and will reduce the relevant allowances (tax credit and standard rate cut-off point in respect of the employee) accordingly. Revenue will notify the employer or pension provider of the applicable adjustment by means of a new P2C in respect of the employee. The P2C is the employer copy of the employee tax certificate.

The issuance of a revised P2C is the only thing that the employer needs to be actively aware of in relation to maternity or adoptive benefit. However, since the employer pays the first 21 days of the Health and Safety benefit the new taxation provided for in the Finance Bill may have more of an impact on the employer and the payroll administrator here.

maternity benefit

The net income paid to the recipient for the period is going to be reduced by the new taxation. Consequently, one significant result of this new provision might be mothers/expecting mothers availing of reduced periods of maternity/adoptive leave.

By |2017-01-02T11:00:30+00:00June 17th, 2015|Policies & Procedures|0 Comments

Breaks and Rest Periods in the Irish Workplace

Break Periods in Work Under the Organization of Working Time Act 1997 every employee in Ireland has a legal entitlement to breaks during their working day (or night) and is entitled to have clearly defined rest periods between their working days/nights. Under the Organization of Working Time Act 1997 a rest period is defined as any time that is not working time. In general an employee is entitled to a 15 minute break after the completion of 4.5 hours of work. If the employee is working a shift of 6 hours then he or she is entitled to a 30 minute break (the first break of 15 minutes can be included in this 30 minute allocation). The employer is not obliged to pay employees for these break periods and they are not included when counting the total amount of time that the employee has worked. The regulations vary slightly for different categories of employees - for instance, shop employees who work more than 6 hours at a time are entitled to a break of one consecutive hour between the hours of 11:30 and 14:30 if their work schedule incorporates this period. Breaks in work - rest periods Employees are entitled to 11 consecutive hours of rest in a 24 hour period – on top of this an employee should receive 24 hours of consecutive rest in every 7 day period and this 24 hour allocation should follow an 11 hour rest period. Where an employer does not give his or her employee a full 24 hour consecutive rest period throughout the course of one week he or she must give two of these 24 hour rest periods in the following week.  This rest period, unless otherwise stated, should include a Sunday. Not all employees are governed by the break and rest period rules described above. Members of An Garda Síochána, The Defence Forces and employees who manage their own working hours are exempt.  Family employees on farms or in private homes are also excluded from the Organization of Working Time Act 1997 directives. The working terms and conditions for people under the age of 18 are regulated by the Protection of Young Persons (Employment) Act 1996. Rest periods in work - break periods In exceptional circumstances or emergencies an employer is exempt from providing the above mentioned rest periods but only where he or she provides equivalent compensatory rest. Where the rest period is postponed the employer must allow the employee to take the compensatory rest within a reasonable period of time. Employees working in transport activities or certain categories of civil protection services are exempt from the statutory break regulations specified above (the equivalent compensatory rest rules do not apply for these employees). Employers should be aware that employees have 6 months to make a complaint regarding breaks and rest periods (in certain circumstance this period can be extended to 12 months).  

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