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What employers need to know about work permit Ireland
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What employers need to know about work permit Ireland

Employer Responsibilities

What employers need to know about work permit Ireland

  Employers, as you may be aware, the National Employment Right’s Authority (NERA) conducts thousands of inspections (many of which are unannounced) annually. It is within NERA’s remit to investigate your compliance with Irish Immigration and Employment Permit legislation.     Did you know that employers could be seriously penalised for employing individuals who do not have valid employment permits? • The Employment Permits Acts 2003 to 2006 make it a criminal offence for a foreign national to work without an employment permit. Employers are committing an offence themselves if they employ a foreign national without a valid work permit. • The Acts place an onus on the employer to carry out checks in order to be satisfied that a prospective employee does not require an employment permit, and, if he or she does, that they have obtained one. • NERA inspectors are authorised to exercise powers under the Employment Permit Acts. If, during an inspection, NERA finds evidence showing that an employee does not have a valid employment permit, both the employer and employee are advised of the need to correct the situation. They are also informed of the consequences of failing to do so. • An employer failing to rectify matters could be prosecuted. NERA commenced initiating proceedings under S.2 of the 2003 Act in 2012. • An Garda Síochána are also an enforcement authority under Employment Permits legislation with prosecution powers. Who needs an Employment Permit? According to the Department of Jobs, Enterprise and Innovation, a non-EEA national (except in the cases listed below) requires an employment permit to take up employment in Ireland. The EEA comprises the Member States of the European Union together with Iceland, Norway and Liechtenstein. Employment permit (or work permit) holders are only allowed to work for the employer and in the occupation named on the permit. If the holder of an employment permit ceases to work for the employer named on the permit during the permit’s period of validity, the original permit (along with the certified copy) must be returned immediately to the Department of Enterprise, Trade and Innovation. Citizens of non-EEA countries who do not require Employment Permits include:     • Non-EEA nationals in the State on a Work Authorisation/Working Visa   • Van der Elst Case The European Court of Justice delivered a judgement on the Van der Elst Case (Freedom to Provide Services) on 9 August, 1994. The Court ruled that in the case of non-EEA workers legally employed in one Member State who are temporarily sent on a contract to another Member State, the employer does not need to apply for employment permits in respect of the non-nationals for the period of contract.   • Non-EEA nationals who have been granted permission to remain in the State on one of the following grounds:   • Permission to remain as spouse or a dependent of an Irish/EEA national;   • Permission to remain as the parent of an Irish citizen;   • Temporary leave to remain in the State on humanitarian grounds, having been in the Asylum process. • Explicit permission from the Department of Justice, Equality and Law Reform to remain resident and employed in the State • Appropriate business permission to operate a business in the State • A non-EEA national who is a registered student Swiss Nationals: In accordance with the terms of the European Communities and Swiss Confederation Act, 2001, which came into operation on 1 June, 2002, this enables the free movement of worker between Switzerland and Ireland, without the need for Employment Permits. It is imperative that every labour market opportunity is afforded to Irish and other EEA nationals in the first instance. This is also in accordance with EU obligations and recognises that Ireland's labour market is part of a much greater EEA labour market which affords a considerable supply of skilled workers. An interesting point to note is that work permits will not be considered for certain occupations. Since April 10^th 2013 occupations listed as ineligible for work permits are as follows: • Hotel, tourism and catering staff except chefs • Work riders – horseracing • Clerical and administrative staff • Drivers (including HGV drivers) • Nursery/crèche workers, child minders/nannies • General operatives and labourers • Operator and production staff • Domestic workers including carers in the home and child-minders* • Retail sales staff, sales representatives and supervisory or specialist sales staff** • The following craft workers and apprentice/trainee craft workers: bookbinders, bricklayers, cabinet makers, carpenters/joiners, carton makers, fitters - construction plant, electricians, instrumentation craftspeople, fitters, tilers - floor/wall, mechanics - heavy vehicles, instrumentation craftspersons, metal fabricators, mechanics - motor, originators, painters and decorators, plumbers, printers, engineers - refrigeration, sheet metal workers, tool makers, vehicle body repairers, machinists - wood, plasterers and welders * In exceptional circumstances an employment permit may be granted for a carer who is a medical professional caring for a person with a severe medical condition or for a carer who has a long caring relationship with a person with special needs where there are no alternative care options ** Specialist language support and technical or sales support with fluency in a non-EEA language in respect of those companies that have formal support from the State’s enterprise development agencies earning at least €27,000 a year may apply for a work permit.

By The HR Company Administrator|2021-01-07T17:59:43+00:00June 17th, 2015|Employer Responsibilities|0 Comments

How to Conduct an Effective Employee Communication Survey

Surveying employees is an effective first step in fixing communication barriers in an organisation. Even if there are no obvious problems, communication surveys can help get an organisation to the next level of performance. Benefits in conducting an employee communication survey and acting on the results include: • improved employee satisfaction • lower turnover • reduced absenteeism • less political infighting • greater levels of manager-worker trust • reduced defect rates • higher customer satisfaction A well-run communication survey can give you these benefits. However, a poorly conducted communication survey can have the opposite effect. Surveys badly planned, rolled-out and followed-up can actually increase employee cynicism and resistance to change. They can also increase employee turnover and absenteeism. This can negatively impact customer satisfaction and your bottom line. Employee Communication Survey Tips So, what do you need to consider before rolling out your survey? Here are some tips. Question types Include in your survey questions that require limited tick-the-box responses, such as Yes/No and Strongly Agree/Agree/Disagree/Strongly Disagree. Including these questions will allow you to perform quantitative analyses that you can use to compare results between different demographics and to use as a benchmark for future surveys. However, equally as important is the provision of free form space which affords employees the opportunity to elaborate on the feedback they have given elsewhere on the form and to discuss in detail anything that has not been covered in the other areas of the survey. A good idea is to run Focus Groups with a random sample of respondents after the survey forms have been collected and analysed. These discussion groups are invaluable in performing a sanity check on your results so far and in teasing out issues that have surfaced in the written survey. Anonymity Guarantee absolute anonymity for the people completing the survey and make this clear in the survey instructions. Some employees will either not complete the survey or give sanitised answers if they believe that their identity will be disclosed with their answers and comments. Employee Survey   Sample size Should you survey the whole organisation/department or a select group? Preferably, survey all employees as this gives everyone a sense of being listened to. If the organisation/department is excessively large or budget is tight, draw a random sample from each of the demographic groups that you will be reporting on. If your selection is not random, the communication survey results will not be representative and you will lose credibility with your employees. If a demographic group comprises 50 people or less, you will need to survey 100 percent of the people within that group. Mode of delivery If the people completing the survey are small in number and at a single location, then hardcopy distribution will not be a problem. As the number of respondents increases and the locations become more dispersed, more consideration will need to be given to electronic distribution. Think about putting the survey on a local intranet or internet web server. To make filling out the employee survey form easy for people, have it so that the form can be completed online. If this is not possible, either send the form by email or put it on an accessible server from which people can download it. If your survey respondents are not comfortable with technology, then be wary of online options and provide plenty of employee support if you decide to go down that road.   Inducements and Reminders Survey participation rates do not tend to be particularly high, typically ten percent or less. You can dramatically improve on this completion rate by conducting some simple follow-up. As you get closer to the communication survey cut-off date (of course, you will have publicised that date with your survey), send out an e-mail reminder or arrange for someone to call the respondents personally. Consider advertising a raffle for all survey participants - this will increase the participation rate (especially if it is a good prize). describe the image Distribute results Once the employee feedback results are in and analysed, distribute your findings first to your managers and then to employees. Withholding results from employees will only breed cynicism and distrust and will make getting a satisfactory response rate from your next survey all that more difficult. Break down your results into meaningful groups, such as by department or by location/site. The reporting groupings need to be small enough that people can identify with the group enough for a meaningful action plan to be developed. Be prepared for some kickback from defensive managers. Frank employee feedback is both confronting and jarring, especially for those managers not used to it. Use your best facilitation skills to deliver the key messages, or use a professional facilitator to perform this sensitive task. Follow-up and Rewards A survey conducted with no plan for action is not only a waste of resources but will leave employees asking why they bothered to give feedback to managers on how they felt. Work with each manager to construct an action plan that they agree with. Remember, it is the manager that will be implementing the communication plan, not you. Get back with each manager three or six months later to review how they are progressing with their communication plan and report the results to the organisation. As you see communication practices improve across the organisation, make sure that managers get rewarded.

By The HR Company Administrator|2017-01-02T11:00:09+00:00June 17th, 2015|Employee Communication|0 Comments

Force Majeure Leave in the Irish Workplace

There are several types of leave that an employee may be entitled to. Some forms of leave are statutory entitlements and some other forms are not. Maternity Leave, for instance, must be given to employees when they are pregnant. Some forms of leave are paid and others are not. This can depend on statutory obligations and on the terms and conditions set out in the Contract of Employment. Annual Leave is a statutory entitlement and it must be paid by the employer. Sick Leave, however, is not always paid by the employer (this depends on individual company policies). Force Majeure Leave is less commonly discussed. The purpose of Force Majeure Leave is to provide limited, paid leave to enable an employee to deal with family emergencies resulting from injury or illness of a close family member. Force Majeure Leave applies where the immediate presence of the employee is urgent and indispensable (essential). A close family member is defined as one of the following:

A child or adopted child of the employee
The husband/wife/partner (same or opposite sex) of the employee
A parent/grandparent of the employee
A brother/sister of the employee
A person to whom the employee has a duty of care (where he or she is acting in loco parentis)
A person in a relationship of domestic dependency with the employee
Persons of any other class (if any) as may be prescribed

By its nature, an employee will not usually be able to give notice of the need to take Force Majeure Leave. The employee should, however, inform the employer (in writing) of reasons for taking the leave as soon as is reasonable practicable. The employee should provide details regarding the need for the leave and should confirm who the leave was taken in respect of. Employers are obliged to keep a record of Force Majeure Leave taken by employees. Employees will be entitled to: - up to 3 days paid Force Majeure Leave in any consecutive 12 month period; or - up to 5 days in a 36 consecutive month period. Absence for part of a day is usually counted as a full day of Force Majeure Leave. Employees are entitled to receive pay for this type of leave. Employers can grant employees more than the number of days outlined above; however, they are not obliged to do so. Employees are protected against Unfair Dismissal for taking Force Majeure Leave or for proposing to take it. Death is not covered under Force Majeure Leave – Leave taken when a death occurs falls under Compassionate Leave and this tends to depend on employee contracts as well as custom and practice within the workplace.

By The HR Company Administrator|2017-01-02T11:00:09+00:00June 17th, 2015|Policies & Procedures|0 Comments

Employers reducing salaries without consent

If a salary reduction is imposed without consultation or employee agreement, an employee now only has three (rather than four) potential legal opportunities to seek redress from his or her employer. If an employee’s wages are cut his or her first option is to claim Constructive Dismissal under the Unfair Dismissals Acts 1997-2007. Constructive Dismissal is the term used when an employee terminates his or her employment based on the conduct of the employer. In this instance, the employee must be able to prove that their position became unsustainable as a direct result of the involuntary reduction in pay. Secondly, where an employee’s salary is reduced, he or she has the opportunity to bring a trade dispute under the Industrial Relations Acts. The Industrial Relations Acts deal with disputes between employers and workers that are connected with the employment or non-employment, or the terms and conditions of or affecting the employment, of any person. Thirdly, if an employer cuts an employee’s pay, the employee could claim that their contract has been breached. Defending this could prove very costly for the employer. Furthermore, an injunction may be granted to prevent the contract breach/reinstate the original salary. Salary Reduction In the past employees whose wages were cut without prior consent had a fourth option. They had the opportunity to take a case (and were likely to succeed) under the Payment of Wages Act 1991. Claims in relation to a reduction in wages, however, may no longer be successful if taken under this Act as a result of a recent Employment Appeals Tribunal determination. The specific EAT case referenced here is an appeal of a Right’s Commissioner decision in the case of Santry Sports Clinic v 5 employees. The employees in the aforementioned case were claiming for an 8% reduction in their pay that was imposed between February and March 2010. Santry Sports Clinic stated that the reduction was essential. According to the employer, all employees received letters detailing the 8% reduction in advance and, while only 30% of employees agreed to the reduction via return letters, no one officially objected or stated that they would not accept the pay cut and so it was implemented as planned. The Employment Appeals Tribunal considered all evidence and representations made at the hearing as well as all other submissions made. The Tribunal noted the High Court decision in the case of Michael McKenzie and others and Ireland and the Attorney General and the Minister for Defence Rec. No. 2009. 5651JR. In paragraph 5.8 of this decision the Judge stated that “the Payment of Wages Act has no application to reductions as distinct from ‘deductions’.” The Tribunal followed the High Court decision on a point of law and, therefore, the appeal was successful and the decision of the Rights Commissioner was entirely overturned in the case of Santry Sports Clinic v 5 employees. Reducing employee's pay This case brought to light the fact that the Payment of Wages Act 1991 refers to “deductions” as opposed to “reductions” and, as a consequence, employees whose wages are reduced without prior consent are now unlikely to succeed if they opt to take a case against their employer under the Payment of Wages Act 1991. This is particularly significant for claims that are currently being processed by the Employment Appeals Tribunal. Employers need to remember that, although this option has essentially been closed off for employees as a result of the above-mentioned High Court decision and the EAT case, they still have several avenues open to them if they wish to take a claim where a reduction of wages has been imposed by the employer without prior consent.

By The HR Company Administrator|2017-01-02T11:00:12+00:00June 17th, 2015|Policies & Procedures|0 Comments

Pension Obligations of Irish Employers

No matter how big or how small your company may be – or whether your employees are part-time, seasonal or fixed-term - every Irish employer is obliged to enter into a contract with a PRSA provider and to provide access to at least one standard PRSA for all ‘excluded employees’.

What are ‘excluded employees’? Employees are considered to be ‘excluded employees’ if:

their employer does not offer a pension scheme, or
they are included in a pension scheme for death-in-service benefits only, or

they are not eligible to join the company’s pension scheme or will not become eligible to join the pension scheme within six months from the date they began working there, or
they are included in a pension scheme that does not permit the payment of additional voluntary contributions (AVCs).

  Even if there is only one ‘excluded employee’, an employer must:

enter into a contract with a PRSA provider (there is no charge for doing this)
provide employees with access to a Standard PRSA
allow reasonable paid leave of absence, subject to work requirements, so that excluded employees can set up a Standard PRSA
make deductions from payroll if required
advise employees in writing (normally on their payslip) at least once a month of their total contribution, including employer’s contribution, if any.

What an Employer is NOT responsible for:

You’re not obliged to give any advice to employees in relation to PRSAs, but you must allow your PRSA provider or intermediary reasonable access to your employees to brief them on PRSAs.

You don’t have to contribute to PRSAs on behalf of your employees, but if you decide to do so, your contributions must be paid to the PRSA provider within 21 days of the end of the month in which the employer contributions are due. And please note that you cannot make any deductions from this payment.

You are not responsible for the investment performance of PRSAs

What are the consequences of non-compliance? Be aware that there are significant penalties for failing to discharge your obligations. The Pensions Board will issue on-the-spot fines and prosecute any employers found in breach of theobligations, so it pays to get it right. As an Employer you may be subject to an on-the-spot fine if: (a) You fail to respond to a request by The Pensions Board to furnish information about their provision of access to a Standard PRSA for ‘excluded employees’ and (b) You do not provide at least a monthly statement to employees showing contributions deducted and employer contributions paid in the previous month. The bottom line is that this is not an issue that you can afford to get wrong. To find out more about your obligations, there’s a very helpful booklet on the Pension Board’s website.

IFG have many years of experience of providing Pension Scheme Design & Risk Advisory services to Irish companies. They would be delighted to answer any and all of your pension queries if you would like to find out more www.ifg.ie .

By The HR Company Administrator|2017-01-02T11:00:13+00:00June 17th, 2015|Policies & Procedures|0 Comments

Equality Officer Awards €40,000 in Gender Discrimination Case

Equality Officer Awards €40,000 to Anne Delaney in response to complaint made against the Irish Prison Service. Anne Delaney took a case against the Irish Prison Service because she was discriminated against by her employer on the grounds of gender in relation to promotion, training and conditions of employment. In 2011, Ms. Delaney referred a complaint against her employer under the Employment Equality Acts 1998 to 2008 to the Equality Tribunal. She alleged that the Irish Prison Service discriminated against her on grounds of gender when she applied for numerous posts over several years. Junior or less suitable/less experienced male candidates were appointed to the roles ahead of Ms. Delaney on all occasions.    

After reviewing all of the submitted evidence, the Equality Officer was satisfied that the complainant, Ms. Delaney, had established a link between the incidents that she complained about. The Equality Officer considered the incidents as separate manifestations of the same disposition to discriminate. The Equality Officer criticised the lack of transparency stating that she was unsure of the fairness of the selection procedures that were followed. There were no marking schemes available for review and no records to help her to assess what grounds the hiring decisions were based on. It also became apparent that the same senior personnel were involved in the selection process for all posts.

The Equality Officer’s investigation of the complaint concluded that the Irish Prison Service discriminated against Ms. Delaney on gender grounds when she applied for a gym instructor course in 2001, when she applied for an Operational Support Group post in 2009, when she was asked to step down from the post of Acting ACO in August 2010 and again in September 2010 when she applied for an allowance carrying post in the Detail Office.

As a result of her findings the Equality Officer tasked with making the decision on the case ordered that Ms. Delaney be appointed to the position of Acting ACO, and placed on the permanent roster for that position. The Equality Officer backdated this appointment to the 5th of August 2010 and ensured that all consequential employment rights and entitlements, including remuneration and recognition of service, were upheld.

The Equality Officer found that Ms. Delaney had been subjected to discrimination on the grounds of her gender on numerous occasions during her career with the Irish Prison Service. The Equality Officer considered a compensatory award of €40,000 to be just and equitable in response to the distress suffered by Ms. Delaney as a result of the discrimination that she suffered. The Equality Officer felt as though €40,000 was a proportionate, effective and dissuasive sum to award. That component of the award was not in the form of remuneration and, consequently, was not subject to the PAYE/PRSI Code.

The Equality Officer found that the Irish Prison Service’s selection process for the allowance carrying post in the Detail Office (a post applied for by Ms. Delaney in September 2010) was deficient and non-compliant with Equality Legislation. The Equality Officer ordered that the Irish Prison Service ensure that a fair selection process be adopted in all future selections. She also ordered that the selection panel must be trained in the process and that it must set down the criteria in writing before embarking on the selection process. The Equality Officer also ordered that a marking scheme must be adopted and that the weighting should be given under each element. She also directed that notes must be retained for future reference.

DEC-E2013-155

DECISION NO: DEC-E/2013/155

Anne Delaney Vs Irish Prison Service

FILE NO: EE/2011/292

DATE OF ISSUE: 19th of November, 2013

By The HR Company Administrator|2017-01-02T11:00:14+00:00June 17th, 2015|Compensation|0 Comments

With the Christmas Period upon us we thought you might find some information on Public Holidays and the relevant employer obligations/ responsibilities around pay useful.

There are nine Public Holidays in Ireland each year - they are:

•New Year's Day (1 January)

•St. Patrick's Day (17 March)

•Easter Monday (Changes every year)

•The first Monday in May, June & August

•The last Monday in October

•Christmas Day (25 December)

•St. Stephen's Day (26 December)

Here is a breakdown of the statutory outline of Public Holiday Entitlements under Irish Employment Legislation: Did you know that employees scheduled to work on a Public Holiday are entitled to an additional day's pay for the day?

For instance, let's take “Employee A” as an example – “Employee A” works on the day the Public Holiday falls - let's say “Employee A” is a retail store employee and is required to work on St. Stephen's day as it is the first day of the store's seasonal sale. *On a normal working day “Employee A” earns €100. This means that “Employee A” is entitled to receive the usual €100 for the hours worked on the Public Holiday as well as an additional €100 - So “Employee A” receives €200 for working on the Public Holiday. If there is any ambiguity in ascertaining what an additional day's pay should equal the employer should look at the last day worked prior to the Public Holiday. “Employee B” represents an employee who is normally scheduled to work on a day that a Public Holiday falls but is not required to work on that day (for example - an administrative assistant in a bank who typically works 09:00-17:00 Monday – Friday, who is not required to work on Easter Monday). “Employee B” should receive their normal day's pay for that day as well as not being required to work on the Public Holiday. On a normal working day “Employee B” receives €100. When a Public Holiday falls “Employee B” will not be required to work on this day as the business is closed. “Employee B” will still receive their normal day’s pay. Bank Holidays at Christmas

The one that can cause the most confusion is the case of “Employee C” – Employees who are not normally scheduled to work on the Public Holiday will receive one-fifth of their normal weekly pay for the day. “Employee C”, for instance, works Wednesday – Friday and receives €100 per day in remuneration. If a Public Holiday falls on a Tuesday, even though “Employee C” never works that day he or she still has the right to benefit from the Public Holiday in some way. “Employee C” is still entitled to be paid a certain amount as a benefit for the Public Holiday (one-fifth of their normal weekly pay). If this employee earns €300 per three day week (Wednesday-Friday) they are entitled to earn an additional €60 during a week where a Public Holiday falls on a Monday or Tuesday. The above rules will apply for all Public Holidays.

By The HR Company Administrator|2017-01-02T11:00:14+00:00June 17th, 2015|Christmas|0 Comments

Dignity at Work – 20% of racist incidents occur in workplace

In December 2013 the Immigrant Council of Ireland (ICI) brought our attention to a shocking statistic – The ICI revealed that the number of racist incidents reported in Ireland in the first 11 months of 2013 had jumped to a staggering figure – The ICI dealt with 142 individual racism cases between January and November 2013 - This figure was 85% higher than for the same 11 month period in 2012. 52 of the racist incidents that were reported occurred between June and July of 2013 alone. This signified a huge increase when compared to the same period in 2012 when just 3 incidents of a similar kind were reported. The racism reported related to alleged discrimination, written harassment, verbal harassment and physical violence. Denise Charlton, CEO of the Immigrant Council of Ireland, described the results as "alarming". A massive 20% of the reported incidents of racism occurred in the workplace. Employers need to be vigilant and need to make more of an effort to consciously crack down on this type of activity. Employers - Did you know that you can be held accountable for bullying or harassment in the workplace? ……..Not being aware of it does not get you off the hook! Bullying in the workplace is any recurring inappropriate conduct that undermines a person’s right to dignity at work. Bullying can be carried out by one person or by several people - it is aimed at an individual or a group where the objective is to make them feel inferior or victimised. Bullying can come in the form of a verbal or physical assault and can also take place over the internet – this is known as cyber bullying and can be performed via many methods - Mobile phones, social networking sites, emails and texts are all common vehicles for cyber bullying. Cyber bullying is becoming more and more prevalent in society. Keep in mind that harassment based on civil status, family status, sexual orientation, religion, age, race, nationality or ethnic origin, disability or membership of the Traveller community is considered discrimination. Harassment in the workplace is prohibited under the terms of the Employment Equality Acts, 1998 to 2007. The Act of harassment - whether direct or indirect, intentional or unintentional - is unacceptable and should not be tolerated by any company. Any allegations should be dealt with seriously, promptly and confidentially with a thorough and immediate investigation. Any acts of harassment should be subject to disciplinary action up to and including dismissal. Any victimisation of an employee for reporting an incident, or assisting with an investigation of alleged harassment and/or bullying is a breach of Equality Legislation and should also be subject to disciplinary action.   Dignity at work Bullying or harassment isn’t always obvious – in fact it can come in many shapes and forms – some examples are: •Social exclusion or isolation •Damaging someone’s reputation through gossip or rumour •Any form of intimidation •Aggressive or obscene language or behaviour •Repeated requests for unreasonable tasks to be carried out Employers Beware: Under current Irish employment legislation (The Employment Equality Acts 1998-2011) companies are accountable when it comes to bullying and harassment in the workplace or workplace disputes. It is vital for employers to be mindful of the legislation as companies are answerable for the actions of employees, suppliers and customers even in cases where the company is not aware that bullying or harassment is taking place. To defend itself a company must illustrate how it did everything reasonably practicable to prevent bullying and / or harassment from taking place in the workplace. The company must also show that when an instance of bullying or harassment occurred the company took immediate, fair and decisive action. There is a huge risk of exposure if companies do not adhere to the strict Regulations. Those found in violation of the Act may be liable for fines and in severe circumstances imprisonment on summary conviction. Companies can also end up paying out large sums in compensation. Bullying creates a very hostile work environment and can negatively affect employee performance – It can lead to disengagement and low levels of morale. It can also cause a company to lose key members of staff. Bullying can affect both the safety and the health of employees – this violates the Safety, Health and Welfare at Work Act 2005. It is abundantly clear that it is in the best interest of all stakeholders to prevent bullying or harassment of any form in the workplace. In order to avoid bullying and harassment an employer should include harassment-related policies and procedures in the Employee Handbook – A Dignity at Work Policy should be communicated clearly to employees. This will clarify what is expected of employees and what the protocol/repercussions are if bullying/harassment does occur.

By The HR Company Administrator|2017-01-02T11:00:08+00:00June 17th, 2015|Dignity at Work|0 Comments

State Pension Changes Effective January 2014

There is no single fixed/mandatory retirement age (age at which you must retire) for employees in Ireland. Typically, an employee’s retirement age is set out in their Contract of Employment and this can vary from one company/industry to the next. Alternatively, precedent/established custom and practice within the Company can determine the retirement age of its employees. E.G: if Mary was forced to retire at the age of 62 then Jack should also have to retire upon reaching the same age (assuming the circumstances are the same and that Mary was not ill, for instance).

Retirement, State Pension, Increase in pension age Contracts provided by employers to their employees usually incorporate a mandatory retirement age (Normal Retirement Date/NRD). This tends to make it compulsory for the employee to retire at a certain age, usually this is somewhere between the ages of 60 and 65. Most contracts also include some sort of provision for early retirement on ill-health grounds etc.

In certain occupations there is a state-imposed compulsory retirement age. This arises for members of An Garda Síochána and members of the Defence Forces, for instance. Gardaí are forced to retire from their roles by the age of 60.

General Practitioners are obliged to retire from the General Medical Services scheme when they reach the age of 70. They may, however, continue to practice privately if they are approved by the Medical Council – the Medical Council will ensure that they meet their fitness to practice criteria.

There is no set retirement age when a person is self-employed, similarly, unless specifically set out in the Company’s Articles of Association, Company Directors are not usually bound by a maximum working age either.

Contract, Retirement Age Interestingly, employers are allowed to set minimum recruitment ages provided that the minimum age is 18 or under.

The most common company retirement age is 65 and, until recently, people went straight from receiving their salary from the company to receiving a pension from the State (provided they paid enough PRSI contributions during their working life). The Social Welfare and Pensions Act 2011, however, legislated for certain changes to the pensions system in Ireland effective from 1^st January 2014. The State Pension (Transition) has been discontinued for new claimants from 1^st January 2014. As a result, the State Pension minimum age has been increased to 66 years for all. It will increase to 67 years in 2021 and to 68 years in 2028.

What this means is that:

If a person was born between 1^st January 1949 and 31^st December 1954 inclusive, the minimum qualifying State Pension age will be 66 (rather than 65).
If a person was born between 1^st January 1955 and 31^st December 1960 inclusive, the minimum qualifying State Pension age will be 67.
If a person was born on or after 1^st January 1961 the minimum qualifying State Pension age will be 68.

Bridge the gap

When asked, in 2011, about the changes to the State Pension the Minister for Social Protection, Joan Burton, said:

“Given the changes to State pension age and the other proposals in the Framework, both employees and employers must be encouraged to change their attitudes to working longer. In the workplace employers must seek to retain older employees and create working conditions which will make working longer both attractive and feasible for the older worker. Where this is not possible and people leave paid employment before State pension age they will be entitled to apply for another social welfare payment until they become eligible for a State pension”.

The Transition Pension will not be payable to anyone who reaches 65 years of age after 1^st January 2014. Instead, individuals will have to apply for Jobseeker’s Allowance and should be entitled to receive this payment until they become eligible for the State pension. Jobseeker’s Allowance is considerably less per week than the pension is (€188 compared to €230.30).

Employees due to retire from their jobs upon reaching the age of 65 may not be able to afford to do so for another year unless they are able to access savings, draw down a private pension or unless their employer graciously extends the retirement age. To date there is no obligation on employers to increase the retirement age or to somehow bridge the gap financially however, employers nationwide may find themselves receiving requests to increase the retirement age for employees.

Pension, Retirement Age

Please note that if an employer wishes to increase the contracted retirement age he or she is still obliged to consult the employee in relation to same as written consent is required to change the terms and conditions of employment.

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

Fears for Kerry jobs in pay dispute

Services Industrial Professional and Technical Union (SIPTU) held a secret ballot of its members at Liebherr Container Cranes in Killarney yesterday, 14th January 2014. SIPTU members voted to reject Labour Court proposals geared at resolving a long-term pay increase dispute with the Company dating back to 2009. Pay Dispute, Labour Court Liebherr Container Cranes Ltd., a member of the large family-owned German Company, Liebherr Group, was established in Killarney in 1958 and has been a significant direct and indirect employer in the area in recent years. The Company is one of the largest firms in Kerry and one of the largest of its kind in the country. The German company has warned that its commitment to the plant in Killarney has been weakened in recent months as a result of the on-going pay issues and the industrial action which forced them to send work from Killarney to Germany. Fears are now growing for jobs at the Company as Management admit to reviewing its operations in the region. Liebherr stated that a small number of employees have seriously compromised its future in Killarney. Based on the details of Towards 2016 Review and Transitional Arrangement, an agreement drawn up by the Company, a 2.5% pay increase was due to be implemented for employees in January 2009. The Company did not pay the expected increase and argued that payment would severely impact its competitiveness and limit its ability to preserve its headcount numbers in a time of economic hardship. The Company proposed to pay the increase due in three distinct phases beginning in 2012 in return for a number of concessions including cost-offsetting measures. Union members and the Company were unable to resolve the dispute at local level and it became the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. Agreement was not reached at this stage and, on the 28^th January 2011, the pay dispute was referred to the Labour Court. A Labour Court hearing was scheduled for, and took place on, the 2^nd May 2012. The Labour Court considered the submissions of all parties and a decision was made that further engagement was required if the claim was to be resolved before the Court. The Court recommended that the discussions/negotiations were to be facilitated by the Labour Relations Commission. LRC   As a result of the unresolved pay dispute, industrial action was served by SIPTU in November 2013. Workers at the plant implemented a ban on overtime and undertook a one-day work stoppage late in November. All industrial action was suspended on 28^th November when members of the union accepted an invitation to attend a hearing of the Labour Court on 4^th December 2013. In December 2013, the Labour Court recommended that the firm award the disputed 2.5% increase backdated almost two full years to its workers. The Court provided a list of recommendations to both sides. Liebherr said that, while the industrial action and the pay award had increased its cost base, they accepted the recommendation. SIPTU workers at the plant, however, voted on the 14^th January 2014 to reject the Labour Court proposals. The union was said to be dissatisfied with the proposal and wanted the 2.5% wage increase to be implemented on an unconditional basis.

By The HR Company Administrator|2017-01-02T11:00:03+00:00June 17th, 2015|Policies & Procedures|0 Comments