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Supporting Business Owners, Directors and HR Professionals with the latest in HR trends and news.
June 2015
SEPA – What Employers in Ireland need to know about the changeover
Effective 1stFebruary 2014 the Single Euro Payments Area (SEPA) will standardise the processing of electronic payments in the Euro currency. The objective of SEPA is to make payments via credit transfer or debit card within the area fast, safe and efficient. The aim is that electronic cross-border payments are due to become as simple as paying with cash.
The scheme was established to overcome the technical, legal and market obstacles that exist from before the changeover to the Euro currency. The goal is to create a single market for Euro-denominated retail payments. SEPA will enable users to make cashless payments to payees anywhere within the SEPA zone using a single payment account and a single set of payment instructions.
This will allow for the easy movement of food, services and capital throughout the region. What this means is that citizens cannot only live and work anywhere in the area, but can also benefit from competitively priced goods and services, throughout the region.
The Euro currency came into effect in 1999 as an accounting currency (cash and coins were first circulated in the initial Euro currency countries in 2002). The long-term plan has always been to move away from the fragmented national payment markets and to move towards a European Union wide market that is more efficient.
SEPA will impact all citizens operating/living within its boundaries that hold a payment bank account. Those operating in participating countries will soon be able to make and receive Euro-denominated payments with a standard set of terms and conditions – regardless of whether the payments are made within or across national borders.
People will not be obliged to maintain bank accounts in any one particular country in the region to make or receive payments. An account anywhere in SEPA will be able to make or receive a Euro-denominated electronic transaction anywhere else in SEPA with ease. An Irish person living in France will not have to set-up an account in the host country to pay utilities and rent and so on electronically (as has been the case). SEPA will make life easier in this respect – People will no longer be constrained by national borders for banking and will instead be able to bank wherever suits them within the SEPA zone.
New business rules will be implemented with regard to payments. Along with this a set of common standards and requirements for issuing and executing electronic payment instructions in all participating regions will be introduced.
From 1st February 2014 it will be compulsory for countries to withdraw existing “national only” payment standards/systems and it will be mandatory for members to migrate all electronic payments to the SEPA standards.
SEPA is being rolled out in thousands of banks in the countries and regions included in the scheme - the 27 European Union members (28 with the inclusion of Croatia in July 2013) as well as Norway, Monaco, Switzerland, Iceland and Liechtenstein. SEPA in Ireland is being overseen by the National Payments Plan (NPP) Steering Committee along with a National Payments Plan sub group which consists of representatives of the Central Bank of Ireland, Government, banks, businesses and consumers.
The European Union Commission has made SEPA migration mandatory and businesses, regardless of size, will have to make adjustments to their processes to ensure they comply with SEPA on credit transfers and direct debit payments – A lot of engagement is required with banks and advisors prior to the February 1st 2014 deadline.
For SEPA to succeed it will require active participation from these new payment scheme users – namely public administrators, companies and consumers alike. SEPA will affect the vast majority of people and should not be overlooked. Timely migration is recommended – the deadline is quickly approaching.
When SEPA is effective the cost associated with making a payment outside of your own nation should not be any more than within your own national borders – this will be a huge benefit to both consumers and companies.
It is important to note that payments made in a currency other than Euro and to/from non SEPA countries may still attract foreign exchange charges and/or transaction fees.
Those who currently have direct debits leaving their accounts should experience a seamless transition. However, those collecting payments (the payees) of the direct debits will need to make changes to their internal systems. This is of particular importance for companies.
SEPA will have the biggest impact on companies as the standardised payment infrastructure should open up new possibilities to expand business beyond country borders. Common standards, faster settlements and simplified processing will improve cash flow, reduce costs and facilitate access to new markets further afield than before.
Like consumers businesses will need to use Bank Identifier Codes (BIC) and International Bank Account Numbers (IBAN) to identify their bank and account rather than the current identifiers (National Sort Codes and account numbers). Companies should obtain all relevant details on SEPA standards from their banks – the advice is to act quickly and to make the relevant modifications to existing systems or develop new ones without delay. Information technology system providers should be consulted from the outset as the migration could significantly impact these systems.
It is essential for companies to ensure they are informed on all relevant matters here.
Employers deducting Local Property Tax (LPT) from salary
Effective from 1st July 2013, anyone who has not yet paid, or started to pay, their applicable local property tax (LPT) will have the option to have it deducted from their payroll (or occupational pension) available to them. Those who fail to submit their LPT return or fail to meet the relevant payment obligations will have mandatory deduction at source from salary or pension imposed.
Employers and occupational pension providers alike will be obliged to ensure this facility is available to employees from next month.
If property owners are availing of the option to have their applicable LPT deducted at source Revenue will notify the employer/ pension provider via the P2C (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 once he or she has received the relevant P2C (but not prior to July 1st 2013). The P2Cs are due to be issued to employers by mid June. The LPT to be deducted should be illustrated at the bottom of the P2C. The deductions are to be made, on a consistent basis only, 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.
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 will have to keep a record of the applicable LPT that they deduct for Revenue and will be required to account for the figures on the Forms P30 and P35 in respect of the employees concerned. The employer will also have to record 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 will 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.
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 and if an adjustment needs to be made to the P2C then a revised directive will be issued to the employer.
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.
Keeping employers compliant in the current business environment
Many businesses are at risk from within. The climate has never been more litigious. This is not just hearsay. The Labour Relations Commission (LRC) is estimated to have over 50,000
cases on its books. Our estimate is that up to 80 percent of Employers will end up paying out.
Why?
Because Employers make mistakes in how they deal with employees. You can't just call
someone into the office and tell them they're dismissed or subject to a disciplinary measure.
We've had cases where a business owner has erupted in a fit of temper and told slacking
employees to go home and never come back. That's a recipe for Employer disaster.
Some - not all, I hasten to add - employees are watching their opportunity. Ninety-nine times out of 100, it's nothing personal - they're just looking for a way to replace income caused by falling rates and hours. Job prospects are slim out there and they don't see much light at the end of the tunnel. So if they can use you to make up the shortfall, they might take the opportunity.
How do you insulate yourself from the risk of paying out thousands of euro in a claim? Here are some tips to take on board:
Be compliant. The National Employment Rights Authority (NERA) is the governing body for employment rights. To be compliant, you must have all your processes in order, right from the terms and conditions onwards. The process of becoming compliant takes you through the many steps along the way. Also, compliance ensures you won't ship a painful fine from NERA.
Understand that, when it comes to employment issues, process is king. You cover yourself by following process. Document what you have done, tell people why you've done things, follow correct disciplinary procedures - those are the nuts and bolts of the matter. Many business owners ride roughshod over the whole area of procedures. They are very vulnerable.
If you don't know employment law inside out, find someone who does. It will cost you money to get the expert advice you need, but the cost of taking a chance can be multiples more. Observe the legislation.
Redundancy is a minefield if you take chances. You must remember that employees now know their rights better than ever before. They have lived through a time when friends, family and work colleagues have been laid off. They have picked up a great deal of information about their rights. We say to Employers "your employees know their rights - do you?" Some businesses are now facing into a second phase of redundancies. In that instance, you can be guaranteed that staff know their rights better than they did for the first phase. If you don't follow process, if you make a false move, it could cost you.
Redundancies are required to keep a business viable. Make your decisions based on what's best for the business - not because you want to get rid of Danny the storeman who you feel hasn't done a tap for years. Before making people redundant, look at the business overall and see what areas are suffering a downturn, what areas are picking up, and how best you should react to changed circumstances.
A Selection Matrix will help to clarify your thoughts and take the personalities out of the decision - and also
ensure that no-one can accuse you of using redundancy simply to take out people you don't like. As a business owner or manager, you are entitled to make decisions that make business sense. So establish the logic of any decision before you make it.
Theft in the workplace – A serious issue for employers
The HR Company aims to assist employers by giving guidance on all HR related topics - here we advise on what to do when theft is suspected in the workplace:
Request for guidance from employer:
I know somebody in my staff is stealing money from the till. I'm pretty sure I know the culprit. What are my options? I have a staff of nine, all of whom handle cash. I don't have closed circuit TV.
As with any accusation of theft, the onus of proof is on the Employer to establish the culprit. Therefore the business needs to have an appropriate policy in place to investigate such allegations. An Employer should have a Right to Search policy in place in their contracts of employment and Company Handbook. If there is no such policy, an employee has the right to refuse a search of their personal items.
To uncover the person responsible for the theft, there should be markers placed on notes and then a search carried out to obtain the proof. If there is CCTV in place, then the recorded evidence should be obtained.
Common Pitfall:
An Employer discovers there is a theft of money and conducts a 'Witch Hunt' of the staff member they suspect, and this staff member can then claim that they are being victimised in the workplace.
Employers often end up paying out thousands of euro for disciplining employees without following appropriate procedures
An Employer’s Guide to Annual Leave Entitlements in Ireland
Annual leave is paid time off work that employees are granted by their employers - it can be used for whatever the employee wishes. It is important for employees to recharge the batteries and annual leave helps maintain a motivated and productive workforce. It is essential to note that the employer is statutorily obliged to provide a certain amount of annual leave to his or her employees. An employer can, of course, provide more leave than he or she is obliged to give – if an employer offers more leave to employees with long service histories or employees who exceed targets, for instance, this policy should be clearly defined and should be applied fairly across the board.
Regardless of the employee’s status or length of their service everyone is entitled to annual leave. All time worked is eligible for paid holidays.
Here is an easy guide to assist employers in working out what leave should be allocated to each employee:
There are three methods used to work out leave entitlements:
a) The most common method used is: 4 working weeks in a leave year during which the employee works a minimum of 1,365 hours (Unless the employee has changed employment during that year).
b) 1/3 of the employee’s working week per calendar month of at least 117 working hours (Eg: 1.67 * 12 = 20 days)
c) 8% (.08) of the hours worked by the employee in the leave year (the total is not to exceed 4 working weeks)
In some instances an employee’s leave could be worked out using more than one of the approaches listed above – where this is the case all applicable methods should be calculated and the employee shall be entitled to the highest result. Remember - the maximum statutory annual leave entitlement is four of his / her normal working weeks.
How to calculate an employee’s annual leave pay:
Not everyone works a 9-5 office job and not all employees earn the same gross figure on a weekly basis so here is a guide on how to determine holiday pay due to various categories of employees:
(a) If the employee’s pay is calculated by a fixed rate or a salary then the figure due to the employee per week of paid annual leave is equivalent to the amount he or she received for the normal weekly working hours last worked - This payment includes any regular bonus or allowance (that isn’t based on work completed) - it excludes any overtime pay.
(b) If the employee’s pay is not calculated by a fixed rate or salary but instead by commission, for instance (or based on productivity rates) the amount paid to this employee per week of annual leave should equal their average weekly pay calculated over the 13 weeks prior to their annual leave commencing. (If the employee did not work during that period, the average weekly pay is calculated over the 13 weeks prior to the employee’s last working day before the annual leave commences. This excludes overtime.
In order to accurately calculate the number of annual leave days an employee is entitled to it is necessary to incorporate all hours worked in the calculation including time spent on annual leave (yes, employees accrue annual leave while on annual leave!), time spent on maternity leave, parental leave, force majeure leave or adoptive leave as well as time spent on the first 13 weeks of carer’s leave. Employees do not accrue annual leave while on sick leave, occupational injury, temporary lay-off, or career break.
If an employee falls sick during his or her annual leave this day(s) is not counted as annual leave (once it is covered by a medical certificate) and the annual leave day is kept for them to use at a later date.
It is common practice for an employee to request their desired leave dates and usually, once an agreed period of advance notice is given (allowing the employer to arrange suitable cover etc.), the employer agrees. Annual leave is usually discussed in terms of weeks but, with employer consent, it can be broken down into shorter periods – often days or even half days at a time. It is the employer who approves holidays (it would not work from a business perspective if all employees were to arrange leave at the same time, for instance). The employer is, however, required to take the employee’s family responsibilities and need for rest and recreation into consideration.
This annual leave must be given to employees within the leave year or, with the consent of the employee, within the first six months of the following year. The onus is on the employer to ensure that the employee takes their statutory leave allocation within the appropriate period. Employees may, with the consent of the employer, carry over holidays that exceed the statutory allowance to the next year.
If the contract of employment is terminated and there is unused annual leave in respect of the employee the employer is obliged to compensate the employee for the accrued leave. It is illegal to pay an employee in lieu of the minimum statutory leave entitlement unless the employment relationship is terminated.
Registered Employment Agreements (REA) – News
For decades the pay rates and conditions of hundreds of thousands of workers across several sectors, like electrical contracting and construction, in Ireland have been governed by Registered Employment Agreements (REAs).
REAs are legally binding agreements that govern the pay rates and other conditions of employment for all employees in a given sector.
A Supreme Court ruling yesterday, Thursday 9th May 2013, found the existence of such agreements to be invalid. The ruling outlined that a section of the Industrial Relations Act of 1946 (the Act that provided for the REAs) was incompatible with the Irish Constitution on the grounds that the agreements were not created by the Oireachtas (which has exclusive responsibility for creating laws in this country) but instead by the Labour Court - a Court that does not have the power to enforce the conditions contained within the REAs.
While this ruling came about as a result of an appeal brought by the National Electrical Contractors of Ireland (NECI) – the ruling will have massive implications for all sectors governed by REAs.
The electrical contractors who challenged the REA by which they were bound did so because they said that the REA was created by parties that did not represent the electrical industry as a whole. They felt that because they were not a party to the REA they should not be bound by it – they felt as though the rates of pay dictated by the REA were far in excess of what they could afford and that, for those reasons accompanied by the economic downturn, they were not competitive in tendering for projects. The group are said to be delighted with the five judge Supreme Court decision and say that they will be better able to secure existing jobs.
The NECI spoke out to reassure concerned workers that the problem was not so much that they had an issue with having some sort of wage agreement in place but that they felt they had the right to be involved in a decision making process if they are to be bound by the results of such a process. Any future agreement needs to consider and represent the requirements of both big and small employers alike and not just a subset of the contractors in the sector.
The NECI moved to reassure employees that their intention is not to reduce pay arrangements to the National Minimum Wage level (discussed below).
The Technical Engineering and Electrical Union (TEEU) stated that the ruling does not affect existing pay rates and conditions as they are set out in contracts of employment and the terms of this cannot be altered without consultation and negotiation.
Eamon Devoy, General Secretary and Treasurer of the TEEU said: “There are established Rates of Pay and Conditions of Employment in the Construction and Electrical Contracting Industry and any employer who attempts to undermine these standards will be met with the wrath of the TEEU who will use all means at its disposal to protect our members in the industry. It is worth noting that with the loss of registration the requirement for workers and their unions to go through national disputes resolution procedures was also extinguished and should the employers attempt to take advantage of vulnerable workers we could be in for a rocky road ahead”.
The NECI asked “that the inevitable scaremongering by the TEEU, who will claim that the Industry will descend into chaos, be ignored”.
The National Minimum Wage – Ireland
Under the National Minimum Wage Act, 2000 experienced adult employees (those who have been in any employment in any two years from the date of first employment over the age of 18) are entitled to a minimum rate of pay. Lesser rates are applicable for other categories of employees.
For instance, an employee under the age of 18 is entitled to €6.06 per hour or 70% of the National Minimum Wage. An employer can, of course, pay more than what they are required to pay.
The employee would be entitled to 80% and then 90% of the minimum wage in the first two years of employment over the age of 18.
It is important to note that the referenced two years of employment does not have to have been with the same employer nor does it have to have been in Ireland – Any employment carried out from the age of 18 is reckonable for the purposes of the minimum wage entitlement.
If you employed somebody on the National Minimum Wage (currently €8.65), that specific rate is their pay rate. The National Minimum Wage decreased by €1 to €7.65 for a short period in February 2011 but the previous rate of €8.65 was reintroduced on 1st July 2011.
If the National Minimum Wage was to be reduced again in the future this does not mean employers can simply drop the employee down to the new rate - Employees are entitled to remain on the wage at which you employed them unless you negotiate a new deal with them. It would, however, be acceptable to employ new employees at the new rate.
The text of the National Minimum Wage Act, 2000 and related Statutory Instruments can also be accessed on the website of the Office of the Attorney General at http://www.attorneygeneral.ie/.
For support and advice on all of your human resources issues contact The HR Company and avail of a complimentary Employment Law consultation.
Dealing with lateness in work – what should you do as an employer?
Employers should include clear codes of practice regarding tardiness in the workplace in the employee handbook and this should be given to each employee on commencement of their employment.
Timekeeping is very important, particularly when it comes to punctuality and reliability in work related activities.
The employee’s working hours should be specified prior to the start of the employment relationship and he or she should ensure to be ready to start work (not just arrive) at the appointed time.
Employers should attach great importance to consistent punctuality as clients and other key stakeholders rely on the availability of the employees at particular times.
If an employee is going to be late for work he or she should contact their manager immediately giving the reason and their approximate time of arrival. Notification should be made personally. Notification by text message or email is not professional and should be discouraged.
Employers should not hesitate to take disciplinary action against those that are late to work – in fact, rather than ignore it or “let it go”, the best thing to do is to raise the topic with the employee to make them conscious that you are aware of the punctuality issues and to show your dissatisfaction with the behaviour – this will usually nip it in the bud before it becomes a habit that is difficult to shake.
One way to deal with lateness is to withhold payment for the period that the employee was not present and available to work. A disciplinary procedure can also be initiated, up to and including dismissal, if there is constant lateness or non-attendance as this is a serious offense that disturbs other colleagues, management and clients.
If the tardiness is recurring employers should reach out to the employee, particularly if this behaviour is out of character. There may be an issue that the employer should be made aware of. If the employee is experiencing personal problems he or she should be encouraged to utilise the services of the employee assistance program, should this be available in the company.
If there is a need to adjust the required hours of work of an employee due to changing market and business requirements as much notice as possible should be given to the employee.
For guidance on the best approach to grievance issues visit connect with The HR Company.
The HR Company provides an abundance of human resources expertise at a very affordable price and will manage all work associated with reducing working hours/redundancy steps and everything in between.
The HR Company interprets all employment legislation and delivers all disciplinary recommendations - even writing the disciplinary letters for you. (These will be customised; no samples or templates).
Did you know that NERA inspectors are currently carrying out investigations to ensure that businesses are compliant with employment 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?
The HR Company ensures companies are NERA compliant to avoid fines and damaging repercussions.
The experienced HR professionals will issue all customised contracts of employment for your employees and will prepare an employee handbook specific to your company.
Your dedicated account manager will manage any conflict in the organisation including bullying & harassment in the workplace as well as giving recommendations in response to performance issues.
The HR Company will keep you up to date with all changes in employment legislation.
Labour Court’s recommendation in Workers v Timber Company Case
The Workers at a timber company brought a case against their Employer to the Labour Court and the Recommendation was very interesting. The Workers, who were represented by Services Industrial Professional Technical Union(SIPTU), wanted a 5% pay increase. However, the Company didn’t feel as though it should be paying such an increase. The National Wage Agreement ceased in 2008 and the Workers in the Company have not received a pay increase since then. The dispute between the Employees and the Company could not be resolved at local level and became the subject of a Conciliation Conference under the auspices of the Labour Relations Commission (LRC). Agreement was not reached here and so, in November 2013, in accordance with Section 26(1) of the Industrial Relations Act, 1990, the dispute was referred to the Labour Court. In March of this year a Labour Court Hearing took place. The Union argued that the Workers at the timber company have had to endure the austerity measures introduced in successive budgets over the last number of years. They have also experienced a significant increase in taxation which, combined with the difficult budgets, has resulted in a reduction in the take home pay for the Workers. SIPTU also argued that the increase sought was a modest one and that it would not adversely impact the Company. The Company, on the other hand, argued that it was forced to take certain steps to remain viable and maintain levels of employment in the very competitive recent market conditions. The timber firm also stated that it had always met its commitments under the National Wage Agreements; however, any increase in pay at this stage would inevitably challenge the security of employment within the Company. Mr. Hayes (Chairman), Mr. Murphy (Employer Member) and Mr. Shanahan (Worker Member) considered the Employee and Company arguments and made a decision based on all of the submissions.
In the end, the Court met in the middle and Recommended that the Company increase the pay of the workers concerned by 2% for twelve months, effective 1st August 2014.
What to do to avoid Harassment and Workplace Bullying
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!
Here is an overview of the basics:
Bullying defined…
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 several people - it is aimed at an individual or a group where the objective is to make them feel inferior or victimized. 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, disability, race or membership of the Traveller community is considered discrimination.
Bullying 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.
Bullying creates a very hostile work environment and can negatively affect employee performance – 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 in the workplace.
In order to avoid bullying and harassment an employer should include harassment-related policies and procedures in the Employee Handbook. This will clarify what is expected of employees and what the protocol is if bullying takes place.
For advice on what to do refer to the Labour Relations Commission’s Code of Practice detailing Procedures for Addressing Bullying in the Workplace:
http://www.lrc.ie/documents/publications/codes/codeonbullying_.pdf
For further employment legislation and HR advice or to arrange a complimentary consultation/audit with a HR expert at your premises contact us at The HR Company.
Parental Leave Entitlements under Irish Employment Legislation
Employers – did you know that as of Friday 8th March 2013 parental leave has been increased from 14 to 18 weeks?
Here is a breakdown of the points that employers should take note of:
Any employees who have a current or future entitlement to Parental Leave will increase from the current 14 week allowance to 18 weeks going forward.
The directive affords a parent returning to work the right to ask for a change in work pattern for a set period thereafter – the employer is only obliged to consider the request not to adhere to it.
An employee seeking a change in work pattern should make the request as soon as is reasonably possible (no later than 6 weeks before the proposed commencement).
Where the employer refuses the request, the employer must within 4 weeks of receiving the request, inform the employee in writing that the request has been refused.
There is no obligation on the employer to explain why the request was denied.
Where the changes are granted the employee should be asked to sign an agreement specifying the changes to the employee’s working hours or patterns of work and the duration of same.
Additional Important information:
Parental leave is available for each child.
Unless the employer agrees to a longer period where an employee has more than one child, parental leave is constrained to 18 weeks in a 12 month period. There is no obligation on the employer to conform to such a request.
Bear in mind that parents of twins or triplets can take more than 18 weeks of parental leave in a year.
The 18 weeks per child may be taken in one continuous block or, alternatively, in 2 separate periods of a minimum of 6 weeks each. There must be a gap of at least 10 weeks between the 2 periods of parental leave per child.
Separating the parental leave entitlements in to shorter periods of days or even hours can be agreed on an individual basis – this is at the discretion of the employer and is based on the operational needs of the business - there is absolutely no obligation on the employer to agree to shorter periods. The employer should maintain detailed reports of all parental leave as it is used.
It is important to note that both parents have an equal, separate entitlement to parental leave.
It is not possible to transfer leave between parents unless they both work for the same employer and the employer agrees to this set-up.
Any employees that are currently entitled to parental leave are covered by this extension from 14 to 18 weeks.
It is permissible to avail of parental leave in respect of a child up to 8 years of age.
There are special allowances for children that were adopted between the ages of 6 and 8 – leave in this instance may be taken up to 2 years after the date of the adoption order.
Similarly, in the case of a child with a disability leave may be taken up to 16 years of age.
Where illness or other incapacity prevented the employee taking the leave within the normal period exceptional allowances may be made.
Employees must have 12 months continuous service to avail of parental leave; however, a percentage of the leave is available to employees with shorter service in certain circumstances.
Parental Leave remains as being an unpaid leave from employment. However, employers should be aware that employees retain their right to accumulate annual leave while on parental leave and also employees retain their entitlements for Public Holiday’s while on Parental Leave.
The company may postpone the parental leave on the basis that the leave would have a substantial, adverse effect on the operation of the business or due to the number of employee’s taking leave at one time.
For more information on the Council Directive 2010/18/EU on parental leave visit:
http://www.justice.ie/en/JELR/Pages/PR13000093
For guidance on all your HR related questions and for Employment Law expertise visit The HR Company and we will arrange a complimentary consultation to assess your exposure with respect to employment legislation, contracts of employment and much more.
Uniforms, General Workwear and Dress Code Queries Answered
Employees in many companies are required by management to wear a uniform or expressed work attire while carrying out their work responsibilities or while present in the workplace. There are many reasons why employees are obliged to wear a uniform -
- A uniform is important in some industries from a Health and Safety perspective
- Wearing a uniform can create a sense of pride/comfort/unity among employees
- Uniforms maintain the company’s corporate image and are a branding opportunity
- Uniforms assist in the efficient identification of employees which is helpful to customers, other employees, suppliers and stakeholders in general.
The “uniform” requirements may be a simple guide – for instance “All employees must wear black while carrying out their duties” or employees may simply have a name tag attached to their own clothing.
In many workplaces a specific uniform is not mandatory; however, compliance with the company’s dress code may be compulsory and will be enforced by the employer or management.
Employees will often come into contact with clients and suppliers and consequently it is in the best interest of the company that they present themselves in a professional manner with regards to appearance and standards of dress. It is essential that overall hygiene and grooming are maintained.
Where uniforms are not provided or required, employees should wear clothes appropriate to the job responsibilities - Naturally a mechanic will wear a different form of clothing than an office worker.
Where possible work attire should be kept clean and tidy at all times.
Some employers will restrict employees in terms of what jewellery is allowed as well as items like tattoos – If a company has guidelines in relation to matters such as work attire the relevant policies should be included in the employee handbook and this should be made available to all employees on the commencement of their employment.
Some employers will provide uniforms for employees when they commence employment. In some instances the cost of the uniform will be deducted from the employees pay. Rules in terms of the maintenance of the uniform vary from company to company.
Some companies will request that employees launder their own uniforms at their own expense or at the expense of the company. Medical professionals, for instance, must always have sanitized work attire.
It is important that employers do not request that their employees wear inappropriate uniforms or uniforms that are not comfortable or practical for the work that is being completed.
Suitable footwear and clothing that is warm enough for the working conditions is essential.
According to health and safety guidelines an employer must communicate any risks to the employee that would require them to wear protective equipment. The employer should provide the relevant protective equipment such as protective hard hats, metal topped shoes, eyewear and gloves etc. Where necessary the employer should also provide training on how to use the protective gear.
It is the duty of the employee to take reasonable care for his/her own safety and to use any protective equipment supplied. Radiologists should wear lead coated aprons, for instance, to avoid unnecessary amounts of radiation penetrating their bodies during x-rays.
The protective equipment should be provided free of charge to employees if it is intended for use at the workplace only. Where possible, the employee should be provided with their own personal equipment rather than having to share this with other employees.
For assistance in creating contracts of employment or employee handbooks containing policies and procedures about dress code/uniforms and much more and to ensure you are compliant with all employment legislation visit The HR Company and subscribe to have 24/7 access to your own personal expert HR department.
An Employer’s Guide to Setting a Probation Period.
Employment references for prospective employees should always be thoroughly vetted – however, for various reasons, they may not always give a true and present reflection of the candidate or they may reflect what the employee’s capabilities were at a different time which may not necessarily match their current skills. For this reason it is advisable for employers to employ new members based on multiple evaluations to protect themselves and to ensure not to waste any time or resources on someone who isn’t adequately equipped for the role.
An applicant’s Curriculum Vitae and the resulting interview can tell an employer a lot about the potential new employee - it is not uncommon, however, to ask shortlisted candidates to perform competency-based assessments or aptitude tests so that the employer can acquire a full picture of the candidate and determine whether or not he or she is the right fit for the vacancy. In certain instances it is advisable for employers to hire new members on a probationary period of 3 or 6 months or something along those lines – this is becoming more and more prevalent.
This probationary period does not prejudice the company’s right to dismiss in accordance with the notice provisions contained in the employee’s individual statement of main terms of employment, or without notice for reasons of gross misconduct, should this be necessary.
This period should be used by the employer to fully assess the employee’s work performance and suitability and if the work performance is not up to the required standard or the employee is considered to be unsuitable the employer should either take swift remedial action or terminate the employment, without recourse to the disciplinary procedure.
At the end of the probationary period the employee should again be reassessed. If he or she has not reached the required standard the employer should, at their discretion, either extend the probationary period in order that remedial action can be taken or terminate the contract of employment.
The probationary period should not in any case exceed eleven months in total. The employee should receive notice of the company’s intention to extend the probationary period before or at the end of the initial 6 month probationary period.
A clause should allow that any continuous period of absence of four weeks or more would suspend the probationary period until the employee’s return to work.
To avoid any risk of discrimination a policy, like the probationary period outlined above, should be fair and consistent and should apply to all new employees throughout the company. In disciplinary proceedings, when dealing with employees on probationary periods, progressive steps can be skipped but it is a common misconception that fair procedures and natural justice need not be adhered to during the probationary period.
The Unfair Dismissals Acts 1997-2007 will not apply to the dismissal of an employee during a period at the beginning of employment when he/she is on probation or undergoing training provided that:
- the contract of employment is in writing
- the duration of probation or training is one year or less and is specified in the contract
It is important to bear in mind that this exclusion from the Acts will not apply if the dismissal results from trade union membership or activity, pregnancy related matters, or entitlements under the maternity protection, parental leave, adoptive leave and carer's leave legislation.
For assistance in creating contracts of employment or employee handbooks containing policies and procedures and to ensure you are compliant with all employment legislation visit The HR Company and subscribe to have 24/7 access to your own personal HR department - all your HR needs could be at your finger tips.
Internet Usage Policy at Work – What is appropriate in the office?
Whether it is through office computers, laptops or mobile devices, a lot of work environments have easy access to resources like the Internet these days. It is important for employers to lay down ground rules when it comes to the use of the Internet at work. Internet access is typically provided by employers for the purpose of assisting employees with their work related activities.
Employers should instruct employees not to use the Internet for non-work related undertakings – except in extraordinary circumstances or on the specific instruction of the manager.
An employer should reserve the right to restrict and monitor the use of Internet resources.
If observing inward and/or outward Internet traffic it is important to make employees aware of this and to let them know that the sites they visit will be recorded by management and may be used at the discretion of The Company. Employers should reserve the right to monitor by means of electronic scanning, for instance, for source and destination addresses and should scrutinise the distribution of any information through the Internet.
Here are some rules that employers should put in place in the employee handbook:
DO- Use the Internet only as needed for work or limited personal use when essential
- Understand that The Company may be liable for what the employee does from The Company network - whether The Company is aware or not
- Help The Company to maintain compliance with software licensing – if in doubt, the employee should ask the management team
- Download software, games or screensavers to your computer or to The Company network
- Distribute Company Logins or Passwords to those who are not authorised to use them
- Download video files such as MPEG files unless directly related to work assigned to you
- Engage in any form of online gambling or betting
- Use passwords or encryption keys unknown to Management
- Obtain malicious access to Internet sites by cracking or hacking
- Retrieve material from the Internet using Company resources which:
- is racist, sexist or which may otherwise cause offence or be construed as harassment
- infringes someone else’s legal rights, including copyright, patent or trademark rights of any other person or organisation
- is defamatory or attacks or denigrates any person, group or organisation
- would cause offence on the grounds of race, colour, religion, political beliefs, ethnic origin, sexual orientation, gender, age, disability, nationality, marital status, membership of the traveller community or intending to, undergoing or having undergone treatment to change sex, or
- is otherwise unlawful or could constitute a criminal offence or which could damage the reputation of The Company
In order to protect The Company employers should establish policies regarding employees’ personal websites – for instance:
While an employee is entitled to create and operate a personal or commercial website employers generally prevent employees from creating one that would violate Company policies or that would compete with The Company - The employee should notify The Company of his or her external commercial activities and the existence of resources such as a personal website and these should be approved by management to ensure there is no conflict.
Employers should restrict the use of Company resources/property in the development or operation of a personal website. A policy should be put in place to prevent work on a personal website being carried out on The Company premises or on Company time as the employee is expected to devote their full working time and loyalty to The Company.
For assistance in creating contracts of employment or employee handbooks containing policies and procedures about internet use or to help eliminate problems in the workplace while ensuring you are compliant with all employment legislation visit The HR Company and subscribe to have 24/7 access to your own personal expert HR department.
Why employers should establish an Employee Assistance Program:
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.
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