Irish Employment Legislation Updates and Guidance

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

Protections for Whistleblowers in Ireland

The Protected Disclosure Bill 2013 was published on July 3rd 2013 by Minister for Public Expenditure and Reform, Brendan Howlin, T.D. The Bill is to establish a comprehensive legislative framework protecting whistleblowers in all industries in Ireland. The purpose of the legislation is to protect workers who raise concerns regarding wrongdoing (or potential wrongdoing) that they have become aware of in the workplace. The Bill will offer significant employment and other protections to whistleblowers if they suffer any penalties at the hands of their employer for coming forward with information of wrongdoing in the workplace.   Whistleblowers, Protection for whistleblowers in Ireland The legislation, which is due to be enacted in the autumn, closely reflects best practices in whistleblowing protection in developed nations around the world. According to Minister Howlin the Bill “should instil all workers with confidence that should they ever need to take that decisive step and speak-up on concerns that they have about possible misconduct in the workplace, they will find that society values their actions as entirely legitimate, appropriate and in the public interest”. Some key elements included in the Bill are as follows: Compensation of up to a maximum of five years remuneration can be awarded in the case of an unfair dismissal that came about as a result of making a protected disclosure. This would be a massive step forward in Ireland’s attempt to match the standards set by other established nations. It is important to note that limitations relating to the length of service that usually apply in the case of Unfair Dismissals are set aside in the case of protected disclosures. As a result of this Bill whistleblowers will benefit from civil immunity from actions for damages and a qualified privilege under defamation law. The legislation provides a number of disclosure channels for potential whistleblowers and stresses that the disclosure, rather than the whistleblower, should be the focus of the attention. Protections for the whistleblower remain in place even where the information disclosed does not reveal any wrongdoing when examined. Deliberate false reporting, however, will not be protected. These measures, when enacted, should encourage more people to come forward, and feel comfortable doing so, when they become aware of (or suspect) any criminal activity, misconduct or wrongdoing in the workplace. Protection for whistleblowers in Ireland

By |2017-01-02T11:00:24+00:00June 17th, 2015|Policies & Procedures|0 Comments

Compensation and Benefits Management in Ireland

In a competitive job market like this compensation and benefits take on an added level of significance. The management of benefits and compensation can also take on an added level of complexity..... they can cause added stress for an already pressurised environment. Compensation and Benefits, ?Benefits and Compensation Administration   The HR Company removes any complexity from the scenario. We take the guess-work out of decision making by surveying the marketplace and keeping you informed of everything you need to be aware of. On top of salary compensation and benefits can include items such as a company car, bonuses, sales incentives like commission, extra paid time off, medical insurance, stock options and much more. It can be very difficult to stay on top of this HR function. We take the headache out of the administration of compensation and benefits for you by providing you with a variety of specialised back-office services. These include everything from processing pension and medical plans to managing and organising your company’s Organisational Health Index. Here is a list of some of the services we offer to assist companies with their compensation and benefits management: •Pension/medical membership processing •Salary survey, planning & administration •Salary/Bonus/Stock system processing •Company Car policy management •Mortgage application processing •Maternity/Parental Leave benefits •Flexible benefits •Advise on, manage and organise annual Benefits and Expo & Health Awareness Programme •Manage & organise company OHI •Manage Outplacement Programme •Tailored generation of reports & statistics Compensation and Benefits Administration, Management of Compensation and Benefits Our goal is to ensure your HR functions run as smoothly as possible so that you can focus on the ensuring the other aspects of your business are running as smoothly as possible. If you need  guidance or support with benefit and compensation administration then look no further than The HR Company.

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

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

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

Human Resources support in Ireland

Human Resources Support in IrelandAdministration can be an extremely frustrating and time-consuming part of the job but efficient internal mechanics (the nuts and bolts if you will) is what keeps the HR department flowing smoothly. Well-organized administration is what maintains the forward moving momentum of the company yet it is the element of human resources that most HR professionals look upon with trepidation. Rightly so – it’s not glamorous – in fact, one could call it the ‘slog’ work.  The professionals at The HR Company thrive on it and turn it into something useful…. information. From processing new employees to delivering redundancy packages, our HR systems management covers every aspect of back-office administration. The HR Company’s dedicated account managers do much more than administer and process, however, they track your company’s HR information and prompt you and your employees to keep information fresh and up-to-date to avoid any unforeseen issues. Dedicated account managers at The HR Company also use this information to generate the reports and statistics you need to integrate HR into your company’s overall strategic planning. Here is a list of the main tasks that fall under the tricky Human Resources Administration umbrella: •Data entry of new employees •Setting up of email aliases and accounts •Tracking headcount movement •Processing applications •Processing appraisals •Tracking vacation time •Provision and management of electronic filing systems •Preparation and delivery of redundancy packages •Payroll Processing •Tailored generation of reports and statistics HR Ireland We can help to ease the burden of HR administration in a cost-effective manner.

By |2017-01-02T11:00:27+00:00June 17th, 2015|HR Topics|0 Comments

Why employers should establish an Employee Assistance Program:

EAP Counselling at work resized 600

Employee Assistance Programs, often referred to as EAPs, are programs offered by many employers to employees to assist them in dealing with personal/delicate issues that may hinder their performance in work related activities or negatively affect their overall wellbeing.

EAPs support employees and their family members by providing services such as counselling or guidance in finding a service that will help the employee through a challenging stage or sensitive issue.

 

EAP professionals provide assistance to people with a broad range of problems – some examples of these are:

 

  • Overwhelming relationship/family issues
  • Mental illness
  • Alcohol or drug addictions
  • Bereavement
  • Emotional distress relating to illness, financial and legal concerns etc.

 

It is important for employers to make employees aware that the EAP is a voluntary service and that the EAP maintains the confidentiality of the individual availing of the service.

 

Typically the employer absorbs the costs associated with providing an EAP so it is available free of charge for the employee and his/her family members. Some companies have their own EAP and a dedicated team to deliver the relevant support to employees, however, many companies use a third party EAP provider. There is no obligation on employers to deliver such a program to employees, however, there are many benefits linked with the accessibility of an EAP to employees.

 

The reasons an employer should provide access to an EAP are as follows:

 

  • Reduced turnover
  • Improved rates of absenteeism
  • Increased levels of productivity

 

Having support services like this in place gives employees a sense that their happiness and wellbeing is important to the employer – they feel valued in the workplace and morale and loyalty are likely to improve. Employees are more likely to address their issues/problems if doing so is made easy and does not create an additional expense for them.

 

To ensure you comply with all employment legislation and to make sure your human resources issues are tackled efficiently contact The HR Company. 

 

EAP-Employee Assistance Program

 

By |2017-01-02T11:00:39+00:00June 17th, 2015|Policies & Procedures|0 Comments
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