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Supporting Business Owners, Directors and HR Professionals with the latest in HR trends and news.
June 2015
Saving Money by Minimising Waste
The Significance of Waste Management in Business. With mounting expenses it is becoming increasingly difficult for companies to remain in operation and to maintain employee numbers.
Managers are faced with a difficult task as they are continuously asked to reduce costs while simultaneously preserving the quality and service levels throughout the business.
Every company should implement a minimum waste policy to encourage employees to be more aware of their actions and their use or misuse of resources in the workplace and beyond.
Minimising the amount of waste in any organisation will have a positive effect on the bottom line. Consequently, introducing a minimum waste policy is essential if the business is to operate in the most cost-effective and efficient manner possible.
Employees should be obliged to avoid extravagant use of the company’s services, time and energy. Employees should be encouraged to take extra care during their normal work duties by avoiding unnecessary use of any resources within the Company.
Employees should be trained so that they handle all machines, equipment and stock with the utmost of care. Employers should have a policy in place that deals with the conservation of energy.
This policy would direct employees as to how they should proceed when it comes to dealing with lights and heat and so on. The use of all unnecessary lighting and heating should be prohibited and lights/heat should be turned off when their use is not required.
Doors/windows should be opened/closed where possible in order to maintain temperature levels. Similarly, taps should not be allowed to drip and any concerns about resources should be reported to management so that they may be evaluated and rectified.
The use of paper and ink throughout the course of the working day is something that a lot of companies find to be expensive. It is important that employees only print items that they need to have in hardcopy in order to reduce the waste of paper and ink. It is also significant for employers to encourage employees to print on both sides where possible. E-mailing, rather than posting, documents is another practice that should be encouraged. Recycling/reusing paper, where possible, is also a practice that should be considered.
If it is a case that an employee finds himself or herself without assignments to complete during working hours or if their work has come to a standstill for one reason or another then he or she should be encouraged to offer assistance to colleagues who have yet to complete their workload.
In terms of productivity, employees should be prepared to start their working day by the time they are scheduled to begin work and should proceed with their work-related activities without delay. The same process should be followed after break/lunch periods and employees should not conclude their work until the time that they are scheduled to do so.
If it becomes apparent that certain employees are struggling to organise their time then the provision of time-management training should be considered by management. It is also important to ensure that employees are aware of the most efficient methods of carrying out routine tasks (such as searching for documents or preparing spreadsheets) so time is used in the most efficient manner possible.
There are many techniques that a company can use to improve efficiency and exploring and implementing these methods is very important if a company is to remain competitive.Employer Responsibilities when it comes to Contracts of Employment
Employers are legally obliged to provide workers with a written statement of the employment agreement between the two parties (the contract) within two months of the employee commencing employment.
Have you heard of NERA?
The National Employment Rights Authority (NERA) delivers unprejudiced information on employment rights legislation to employers and employees in Ireland. NERA is charged with monitoring the employment rights of employees within the country. NERA inspectors perform various checks around the country and investigate suspected breaches of employment rights – it is important to bear in mind that a significant number of these inspection are unannounced. If NERA finds that an employer is not complying with employment rights legislation inspectors will seek reparation from the employer on behalf of the employee. In certain circumstances prosecutions against the employer may result.
NERA has the power to chase awards made by the Labour Court, the Rights Commissioner or the Employment Appeals Tribunal.
In order to pass a NERA inspection; employers must have provided their employees with clarity on the terms and conditions of their employment. The contract should explain the relationship between the employer and employee and should not leave any room for misinterpretation or confusion.
A contract outlines the requirements of the position and conditions the person must work against. In the event of poor performance the employer can refer to the contract and all conditions contained therein, and manage the employee against such conditions.
Having a contract in place will offer protection to the company in the event of a dispute or issue arising. This document will safeguard the company in the event of employee litigation or labour court hearings.
Items that must be included in the written terms of employment are:
•Full name of employer
•Full name of employee
•The address of the employer
•The place of work (if there is no permanent place of work, a statement specifying that the employee is required or permitted to work at various places)
•Appointment/job role – The title or description of the job or the nature of the work for which the employee is employed
•The date of commencement of the contract
•If the contract is temporary, the expected duration of employment
•If the contract is for a fixed-term, the date on which the contract expires; if the contract is for a fixed purpose, then the details of the occurrence of that specific purpose
•The rate of pay, the method of calculation and the frequency of payment (this clause should also include provisions on any permissible deductions in accordance with the Payment of Wages Act, 1991
•The period of notice required from each party to terminate the contract
•The terms and conditions applicable to sick pay, if any
•The terms and conditions applicable to pension schemes, if any
•The terms and conditions relating to paid leave if any
•The terms or conditions relating to hours of work, including overtime
•Reference should be made to any collective agreement affecting the terms of the contract, whether or not the employer is a party to the agreement, including information about the institutions or organisations which drew up any Collective Agreement which affects the terms of the contract to which the employer is not a party.
An Employee Working Abroad is also entitled to details of the following:
•The period of employment outside the State
•The currency in which they will be paid
•Any other benefits-in-kind or cash that will be provided
•The terms and conditions applicable on the employee's return home
Here are examples of some further terms and conditions of employment that are not required by law but are highly recommended:
•Probationary Period and Probation Policy
•Hours of work / additional hours / overtime / shift liability / weekend liability / night work liability / public holiday liability
•Performance related bonuses
•Absence Management
•Medical examination
•Holidays, public holidays, all other forms of leave
•Grievance and Disciplinary Procedures
•Confidentiality
•Company Property
•Phone and Mobile Phone Usage
•Right to Inspect / Search
•Drugs & Alcohol Policy / Right to Test for Intoxicants
•Retirement
•Company Rules and Regulations
•Bullying and Harassment / Respect and Dignity at Work
•Internet, Email & Social Media Usage
•Use of Company Vehicles
•Suspension without pay
•Break and rest periods / exemption provision for employer for recording breaks
•Return of company property
Employee unfairly dismissed for improper internet use awarded €7,000.
Why is having an internet use/social media policy so important?
On 17th December 2013, the Employment Appeals Tribunal in Mullingar heard a claim that an employee had been unfairly dismissed by her employer, a wholesale electrical company that employed approximately 36 employees. 
The individual was employed as a Marketing Assistant from 1 November 2010. With the permission of the employer, the employee worked a three day week for the first year as she was completing a graphic design course simultaneously. The employer was happy for the employee to begin working a 5 day week on 1st November 2011. The Managing Director claimed that both he and the Office Manager had warned the claimant on a number of occasions about her non-work related internet use. According to the Managing Director, these alleged warnings were of a verbal nature. The Managing Director gave evidence to the Tribunal that, on 16 January 2012, he observed the claimant on a social media site and called her to his office before proceeding to dismiss her from her employment with the Company. The Managing Director believed that the actions of the claimant amounted to a waste of the Company’s time and resources and her actions constituted gross misconduct. It became apparent that the Company did not have a formal internet use/social media policy in place while the claimant was employed. It also came to light that the employee did not receive a contract of employment nor did she receive a copy of the Company’s disciplinary procedures. 
The claimant stated that she completed all tasks that were assigned to her. She was not using the internet in a secretive way (she gave evidence that her computer monitor was in full view of the office) and she did not believe that she was doing anything wrong when she was online. The claimant testified that she was not given a job description detailing the tasks that were assigned to her. The former employee explained that, if she was aware of the company’s policy around internet use/social media then she would have abided by it. The claimant stated that she regularly asked for more assignments to complete during her work hours but was not provided with enough to occupy all of her working time. The employee explained that she was told in December to “wind down” for the Christmas period when she looked for more work from the Managing Director’s son. The claimant admitted to spending time browsing the internet when she had finished with her work assignments but clarified that she spent the majority of her time on the internet carrying out work related activities. The claimant gave evidence that she never received any warnings prior to her dismissal. The Employment Appeals Tribunal considered all of the evidence that was submitted by the claimant and the respondent and concluded that the dismissal of the employee was unfair as, according to the Tribunal, there appears not to have been any valid grounds for the termination. In addition to this the Tribunal found that the dismissal was lacking any procedural fairness because no investigation or disciplinary process took place. 
The Tribunal also made note of the fact that the claimant was never provided with a any of the following documents throughout the course of her employment:
- A contract of employment,
- Payslips,
- An internet use/social media policy
- A copy of the Company’s disciplinary procedures
Employee dismissed for nonconsensual use of premises awarded €25k
A recent Labour Court recommendation where a former employee was awarded €25,000 in compensation for Unfair Dismissal illustrates why employers should make sure to attend any hearings that involve them.
The case in question concerns a former employee's claim that he was Unfairly Dismissed after he used the Company premises without the permission of his employer.
In accordance with section 20(1) of the Industrial Relations Act, 1969, this particular worker referred his case to the Labour Court in June of 2013. He agreed to be bound by the Recommendation of the Labour Court.
A Labour Court hearing took place in February of this year; however, the Company declined to attend the hearing and did not appoint any representation.
This meant that the evidence submitted was solely that of the Claimant. The Court found it 'regrettable' that the employer declined to attend the hearing in any form and found it disappointing that the Company did not avail of its opportunity to present the version of events leading to this dispute from their perspective.
The former employee accepted that he had used the Company's premises without prior consent. However, he did not accept that his behaviour constituted gross misconduct and, consequently, he contested the gravity of the punishment. The employee argued that his dismissal was disproportionate to his actions and maintained that the dismissal was unfair.
Based on the uncontested submissions of the employee (the Claimant) the Court was satisfied that the penalty of dismissal was inconsistent with the actions of the employee and the Court determined that a warning would have been more appropriate in the circumstances.
According to the Court, the dismissal was both procedurally and substantially unfair and so the Court recommended that the Company pay compensation in the amount of €25,000 to their former employee in respect of his Unfair Dismissal. This figure was to be in full and final settlement.
The difference between Constructive and Unfair Dismissal:
Constructive Dismissal is the term used when an employee terminates his or her employment based on the conduct of the employer. Unfair Dismissal is slightly different in that unfair dismissal cases arise when the employee feels as though he or she has been dismissed by the employer on unfair grounds. Unlike in an unfair dismissals case where dismissal is deemed to be unfair unless proven otherwise and justified by the employer - in constructive dismissal instances the onus is on the employee to prove that their resignation was based on poor employer conduct. Employees claim constructive dismissal/unfair dismissal under the Unfair Dismissals Acts 1977-2007. If it is found that the employee has been unfairly dismissed he or she could either be awarded compensation for the loss of earnings suffered by the dismissal or could be placed back in their original role – However, this is not common practice due to the expected tension or strained relationship between employer/employee and due to the amount of time that is likely to have passed between the termination of the employment contract and the resolution of the case. Typically, an employee needs to have accrued 52 weeks’ continuous service with the employer. However, it is crucial for the employer to bear in mind that 52 weeks’ continuous service is not always an essential element. Employees dismissed for trade union membership or because they are pregnant/exercise their right to parental leave, for instance, do not have to have accrued 12 months’ continuous service prior to claiming unfair/constructive dismissal under the Acts. If the employer acts unreasonably towards the employee or breaches the contract of employment (or demonstrates that they no longer intend to adhere to the terms and conditions outlined therein) then the employer is at risk of a claim under the Acts. It is important for employers to be aware of everything that occurs in their workplace as even other employees’ behaviour that goes unchecked by the employer could contribute to a constructive dismissal case. It is also very important for employers to attend Labour Court hearings if they are scheduled so they can give evidence in support of their decision. Also, the Court can look less favourably upon employers who fail to attend and can award higher levels of compensation to the employee. 
Breaks and Rest Periods in the Irish Workplace
Under the Organisation of Working Time Act 1997 every single employee in Ireland has a legal entitlement to breaks during their working day (or night) and is entitled to have clearly defined rest periods between their working days/nights.
Under the Organisation of Working Time Act, 1997 a rest period is defined as any time that is not ‘working time’.
In general, an employee is entitled to a 15 minute break after the completion of 4.5 hours of work. If the employee is working a shift of 6 hours then he or she is entitled to a 30 minute break (the first break of 15 minutes can be included in this 30 minute break allocation).
The employer is not obliged to pay employees for these break periods and they are not included when counting the total amount of time that the employee has worked.
The regulations vary slightly for different categories of employees - for instance, shop employees who work more than 6 hours at a time are entitled to a break of one consecutive hour between the hours of 11:30 and 14:30 if they are scheduled to be in the workplace during that time.
Employees are entitled to 11 consecutive hours of rest in a 24 hour period – on top of this, an employee should receive 24 consecutive rest hours in every 7 day period and this 24 hour allocation should follow an 11 hour rest period.
Where an employer does not give his or her employee a full 24 hour consecutive rest period throughout the course of one week he or she must give two of these 24 hour rest periods in the following week. This rest period, unless otherwise stated, should include a Sunday.
Not all employees are governed by the break and rest period rules described above. Members of An Garda Síochána, The Defence Forces and employees who manage their own working hours are exempt. Family employees on farms or in private homes are also excluded from the Organisation of Working Time Act, 1997 directives.
The working terms and conditions for people under the age of 18 differ from those listed here. They are regulated by the Protection of Young Persons (Employment) Act, 1996.
In exceptional circumstances or emergencies an employer is exempt from providing the above mentioned rest periods but only where he or she provides equivalent compensatory rest. Where the rest period is postponed the employer must allow the employee to take the compensatory rest within a reasonable period of time. Employees working in transport activities or certain categories of civil protection services are exempt from the statutory break regulations specified above (the equivalent compensatory rest rules do not apply for these employees).
Employers should be aware that employees have 6 months to make a complaint regarding breaks and rest periods in the workplace (in extreme circumstances this period can be extended to 12 months).
When should you use a Non Disclosure Agreement (NDA)?
A non-disclosure agreement (NDA), often referred to as a confidentiality or a secrecy agreement, is a legal contract between two or more parties outlining knowledge and/or information that the parties wish to share with one another but wish not to have accessed by third parties.
By signing the document the parties agree not to disclose information that it contains. An NDA creates a confidential relationship between the parties to protect any type of sensitive material such as details of trade secrets – it prevents the dissemination of company or project-specific information that, if leaked, could be damaging for one or both of the parties involved. It usually prevents the signing party from benefiting commercially from the information.
NDAs are commonly signed when two companies are considering doing business with each other and need to exchange information to benefit the partnership. A mutual NDA restricts both parties in their use of the materials provided; alternatively, an NDA can also exclusively restrict the use of material by one of the individuals or groups involved.
Employers often request that an employee signs an NDA or a similar form of contract when he or she commences employment, or a new assignment, in order to maintain confidentiality.
An NDA incorporates various basics – the details of the parties who must adhere to the agreement and the information to be kept confidential (often including items such as unpublished patent applications, financial information, customer lists, discoveries and business strategies). When drafting an NDA it is important to include the disclosure period in the contract.
Those writing the NDA should note that if the recipient had prior knowledge, obtained legally, of the matters contained within the NDA - or if the contents are publically available - the signatory cannot be held liable for dispersing the material. Similarly, if the materials are subject to a subpoena or a court order, this would override the contract.
The NDA should have a clause that forces the signing party to return or destroy the confidential information where the project or assignment is abandoned or when they no longer need access to the information.
Breach of the NDA is a serious offense – when this occurs the information owner can apply to court to have an injunction put in place to stop future breaches – Often it is too late at this stage as the damage has already been done. A second option here is to sue the party at fault for damages suffered by the breach. The consequences of breaching the NDA should be set out in the NDA and should include loss of profit as well as loss of reputation and costs and expenses caused by the breach. It is important to remember that Court proceedings can be a long and arduous process.
It can be extremely difficult to prove that an NDA has been breached but if a breach is proven, this can provide the basis for a claim. Given that it is not always possible to prove that an NDA has been breached some people do not rate them – however, at the very least the NDA holds some value in that it clearly sets out in writing what is expected of the parties to avoid any ambiguity and NDAs also serve as a reminder of the confidential nature of the information and act as a deterrent.
Under 18 Work Register – Employer Responsibilities
In accordance with the Protection of Young Persons (Employment) Act, 1996 employers are required to keep a register of employees that are under the age of 18. The basis for this is to guarantee the protection of young people and to ensure the workload assumed is not jeopardising their education.
During a National Employment Rights Authority (NERA) assessment the inspector will request access to the company’s register of employees under the age of 18 (if the company employs workers in this category).
There are strict rules that employers must adhere to when employing those under the age of 18.
According to the Act employers cannot employ children under the age of 16 in regular full-time jobs.
Children aged 14 and 15 may be employed on a controlled basis.
Some rules to pay attention to:
- They can do light work during the school holidays – 21 days off must be given during this period.
- They can be employed as part of an approved work experience or educational programme where the work is not harmful to their health, safety or development.
- They can be employed in film, cultural/advertising work or sport under licences issued by the Minister for Jobs, Enterprise and Innovation.
- Children aged 15 may do a maximum of 8 hours of light work per week during the school term. The maximum working week for children outside of the school term is 35 hours (or up to 40 hours if they are on approved work experience).
- The maximum working week for children aged 16 and 17 is 40 hours with a maximum of 8 hours per day.
There are many obligations on the employer when he or she employs a young person – here is a list of some of the items that employers must be vigilant of:
An employer must be provided with a copy of the young person’s birth certificate (or other documentation proving age) prior to the commencement of employment.
Before employing a child an employer must obtain the written permission of the parent or guardian of the child.
An employer must maintain a register of employees under 18 containing the following information:
- The full name of the young person or child
- The date of birth of the young person or child
- The time the young person or child commences work each day
- The time the young person or child finishes work each day
- The rate of wages or salary paid to the young person or child for his or her normal working hours each day, week, month or year, as the case may be, and
- The total amount paid to each young person or child by way of wages or salary
- The employer is obliged to ensure that the young person receives a minimum rest period of 12 consecutive hours in each period of 24 hours.
- The employer is obliged to ensure that the young person receives a minimum rest period of 2 days which shall, where possible, be consecutive, in any 7 day period.
- The employer cannot require or permit the young person to do work for any period without a break of at least 30 consecutive minutes.
Pay Slips – Wage Deductions and Associated Employer Responsibilities
The Payment of Wages Act, 1991 forces employers to provide a pay slip in respect of all employees. A pay slip is a statement in writing that outlines the total pay before tax (gross pay) and all details of any deductions from pay. The employer’s responsibility regarding the required provision of pay slips is set down in Section 4 of the Act.
The Act protects against unlawful deductions from employee wages.
Here are the important points for employers to remember:
-Deductions from employee wages must be authorised by either the employee’s contract of employment or by written consent of the employee – a trade union subscription, for instance.
-An exception to this is where the employer makes a deduction from pay when there is a need to recover an overpayment of wages or expenses.
-There is an obligation on the employer to make a deduction from an employee’s wages if they are required by a court order to do so - an example of this might be an Attachment of Earnings order in a family law case, for instance.
-The employer is entitled to make a deduction if the employee is due to make a payment to the employer –An example of this would be if expenses arose due to the employee being on strike.
On the other hand an improper deduction made by the employer is one which is not authorised.
-(Income tax, universal social charge and PRSI contributions are a separate category as they are compulsory deductions required by law).
-Where the deduction from wages arises because of either an act or omission of the employee - till shortages or breakages, for instance, or the supply of goods to the employee by the employer (cleaning of uniforms, perhaps) - then the amount of the deduction must be fair and reasonable.
-The amount of the deduction must not exceed the loss experienced or cost of the service.
-The deduction must take place within 6 months of the loss/cost occurring.
Failure to pay all or part of the wages due to an employee is considered an unlawful deduction and a complaint can be made under the Payment of Wages Act. Similarly, unpaid notice, holiday pay, bonus and commission payments can also form part of a claim under the Act.
Bullying prevalent in Irish workplaces according to recent survey
The results of a recent Europe-wide survey, which were reported on in TheJournal.ie’s article Irish workplaces among worst in Europe for bullying, highlighted worrying levels of bullying within companies in Ireland. According to the survey, Ireland is the 7th worst country in Europe when it comes to workplace bullying with a significant 6% of employees claiming to experience it.
Tom O’Driscoll, SIPTU’s Head of Legal Affairs, explained that “It can be physical abuse but it’s usually abusive name-calling, putting undue pressure on people, singling people out, commenting on their performance…” etc.
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. 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.
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 - 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!
Under current Irish Employment Legislation (The Employment Equality Acts 1998-2011) companies are accountable when it comes to bullying and harassment in the workplace. 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.
Sample award – In June 2013, a fast food company in Blackpool, Cork was forced to pay €15,000 after two employees were subjected to sexual harassment by another employee.
An Equality Tribunal ruling found that a lesbian couple, who both worked for the restaurant in Cork, were forced to endure obscene remarks and queries about their relationship and sexuality from another employee at the branch.
The Tribunal found that management at the restaurant failed in their duty to take the appropriate steps to protect the women. They failed in their responsibilities to their employees and consequently were instructed to pay €15,000 to the couple.
Under Irish Employment Legislation it is the duty of the employer to provide a workplace that is safe for lesbian women and gay men to be open about their sexuality.
This is something that all employers need to pay close attention to.
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.
Employers need to be vigilant and need to make more of an effort to consciously crack down on this type of activity.
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.
The Europe-wide survey found that females between the ages of 30 and 49 are most likely to be bullied at work. Males between the ages of 15 and 29 are the second most likely group to experience bullying. Women in the same age group are most likely to experience sexual harassment.
In December 2013 the Immigrant Council of Ireland (ICI) brought our attention to a shocking statistic when it revealed that the number of racist incidents reported in Ireland in the first 11 months of 2013 had jumped 85% on the same period in 2012. The racism reported related to alleged discrimination, written harassment, verbal harassment and physical violence. A massive 20% of the reported incidents of racism occurred in the workplace.
The area of workplace bullying clearly requires immediate attention in Ireland.
Effective Communication in the Workplace.
Employees and the people on the ground in general, are an invaluable source of information for employers. Whether it is positive or negative, employees can provide a whole host of important feedback for your business - if you take the time to listen to and interpret their comments they can be a real asset to you.
Conducting regular meetings between employees and managers is a good way to keep lines of communication open. However, sometimes people are reluctant to speak out in an open forum, particularly where they have something negative to say or where they have an issue involving someone else who is included in the meeting.
Employee surveys are an ideal way for employees to share their opinions about their job and work environment etc. Confidential surveys tend to encourage honesty and can prove to be of great assistance to employers. Employee participation should be encouraged. Employees will feel as though their input is valued if attention is paid to their suggestions/recommendations. If action is taken by the employer as a result of employee opinions, morale amongst workers can be increased and relationships between the employer and their employees can be drastically improved. This has a positive effect on productivity.
Similarly, as employees leave the company; an exit interview should be carried out. This can be very beneficial for the employer as it can, for instance, give the employer an insight in to the reasons behind the employee’s departure. It can also highlight other issues that exist within the business – issues that management may not necessarily already be aware of. It can also reveal what is working well and where resources should be focused. People tend to be more open and honest about what they are feeling when they know that divulging the information will not have any negative bearing on them.
Not asking the opinion of a departing employee is a wasted opportunity.
It is important to give employees the opportunity to elaborate on their answers and to encourage them to give you as much information as possible – the more information that they impart the better. Leave an additional space for them to comment on issues that you may not have thought to include.
Here are some examples of questions that should be included in an exit interview:
- How long were you employed by the company?
- Were you in a supervisory role?
- Were you a full-time or part-time employee?
- Did you resign or was your employment terminated? If other, please explain.
- If you resigned, what were your reasons for leaving the company? Please list all reasons. (E.G: Geographical Location, Family Circumstances, Career Development etc.)
- If you left for a new position, was the salary offered greater than your salary here? If so, please reveal the approximate percentage difference.
- Can you explain why the new position (if relevant) was more desirable than your position here?
- What might have motivated you to remain in your current position? (E.G: Improved Benefits, More Time-Off, Less/More Travel, Promotional Opportunities etc.)
- What impacted your decision to leave the company? (E.G: Lack of Equipment/Information, Work that did not Challenge, Too much/Too little work, Pressure, Remuneration/Benefits, Other Personnel, Relationship with Supervisor/Co-workers, Morale, Teamwork, Goals, Harassment, Organisational Structure, Physical Environment etc.)
- Can you please tell us about your positive experiences with the company? (E.G: Benefits, Hours, Facilities, Your Supervisor, Co-Workers, Personnel Practices/Policies, Physical Environment/Work Area, Development Opportunities, Level of Support etc.)
- Do you feel as though you received adequate consideration for positions that you applied for? Please explain your answer.
- Do you feel as though your work was fairly evaluated through performance reviews during your employment? Please explain your answer.
- Do you feel as though your monetary recognition was in line with your performance? Please explain your answer.
- Was the frequency/level of your recognition appropriate? Please explain your answer.
- Do you feel as though you received adequate training for your position and the duties you were required to carry out? Please explain your answer.
- Did you have adequate resources, equipment, support and information to carry out your job well? Please explain your answer.
- Was your work environment free of sexual, religious, age and/or racial discrimination? If no, please explain in detail.
- Were you satisfied with the quality and quantity of feedback received from your supervisor about your performance? Please explain your answer.
- Were you kept well informed on what was expected of you in the workplace? Please explain your answer.
- Did you feel free to discuss your career development with your supervisor? Please explain your answer.
Christmas – Public Holiday Advice for Employers
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.
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.
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
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.
- 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
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 .
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.
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.
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.
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.
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).
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.