Welcome to Adare Human Resource Management s July 2007 edition of our HR Newsletter.

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1 Welcome to Adare Human Resource Management s July 2007 edition of our HR Newsletter. Contact our HR Helpdesk on or HRhelpdesk@adarehrm.ie Adare Human Resource Management Partnership Programmes Adare Human Resource Management offers three unique HR Partnership Programmes to clients seeking HR support. Each of our Partnership Programmes offer you the full The topics covered in this month s issue are as follows: Minimum Wage increased 1 st July 2007 support of our HR Helpdesk, giving day-today access by telephone and to a dedicated Client Manager and Client Support Team who will be in a position to answer any questions that arise on people related matters in your organisation and give legislatively compliant, best practice, step by step and easy to follow advice. Furthermore, each programme includes access to our HR Toolkit, which provides access to all the relevant HR and employee forms, documents and templates you ll need. Subscribers to our Business Builder and It is important that all clients note that The National Minimum Wage increased to 8.65 on the 1 st of July (previously 8.30 an hour). Care must be taken to ensure that all employees are paid at least the minimum rates set out in this Newsletter. Case Report Unfair Dismissal Act An important determination was issued by the Labour Court recently in relation to the Unfair Dismissals Act. The case highlights the importance for employers of having fair procedures in place for dismissals. Business Alliance Programmes are also provided with detailed Employee Handbooks and Management Manuals. In addition to advice and support, should the unforeseen happen and an employee lodges a claim for compensation, you have the HR Helpdesk Query of the Month It is holiday season, last month we received numerous calls in relation to annual leave entitlements. peace of mind in knowing that our Insurance Indemnity covers legal defence costs and any compensation awards made against your organisation or its directors. Our dedicated team is committed to delivering the highest level of service to your organisation no matter which Partnership Programme you choose to best suit your needs.

2 Minimum Wage increased 1 st January 2007 All clients are reminded that the National Minimum Wage was increased with effect from 1 st July The new rates are set out below: Employee Percentage of National Minimum wage Payable Minimum Hourly Rate of Pay Effective January 1st 2007 Experienced adult worker 100% 8.65 Under age 18 70% 6.06 Inexperienced Employees Aged Over 18 First year of employment aged over 18 80% 6.92 Second year of employment aged over 18 90% 7.79 Trainees - defined as persons in structured training or study over age 18, undertaken during normal working hours 1st 1/3 period (between 1 month and 12 months) 75% nd 1/3 period (between 1 month and 12 months) 80% rd 1/3 period (between 1 month and 12 months) 90% 7.78 In relation to the above, it is important to note that the Employment Law Compliance Bill 2007 proposes to establish a new statutory office for the Director of Employment Rights Compliance to support current monitoring and inspection activity. The number of Labour Inspectors will be increased from 31 to 90 by the end of The onus will be on employers to maintain and produce up to date records in relation to employment legislation. Employment rights have been given much more support so you can see the importance of making sure you are not in breach of the law.

3 Case Report Unfair Dismissal Act An important determination was made in the Labour Court. This case involved a successful claim of dismissal under the Unfair Dismissals Act 1997 to 2001, in which the claimant was awarded the sum of 5,000 under the Act. Background This case concerns an employee who was constantly out on sick leave due to an accident. She was badly injured and she was absent from work for three weeks. Her sickness was certified. She was paid her salary by the respondent for the first two weeks of her sick leave. On the third week she took time from her holidays. Ms S was hired as a sales assistant and was promoted to branch manager within a short period of time. The Claimant informed the Tribunal that she had been in a car crash suffering severe head injuries that gave rise to bad headaches. The claimant s mother contacted the respondent on the morning of the accident. Ms S received a medical certificate from Beaumont hospital and she was paid her salary by the Company during the first two weeks of sick leave. On the third week, she took time from her holidays and she returned to work on the fourth week. As time went on Ms. S had to continue to take time off for sickness as she was suffering bad headaches as a result of head injuries. On the 5 th of May, 2003, Ms. S left a message to say she would not be in work. The Manager felt that Ms. S could not allow this situation to continue. The job was not getting done. Ms. S was not submitting medical certificates either. A Disciplinary hearing was held. Ms. S submitted the medical certificates on the day prior to the hearing. Ms. S told the Tribunal that she had never been punished in relation to absences and she never had any performance issues. Part of Ms. S s job was to carry bags of stock which, she alleged caused her back problems. On the day prior to her dismissal, Ms. S suffered from back pain and left a message with her colleagues to say she would not be at work. The next day Ms. S sent a text to say that she would not be in work and explained the situation about the back pain. The Manager told her that her situation could not continue and that she was dismissed. The claimant did not receive a reference or holiday pay. Fair procedures were not complied with in this case. The Company did have a policy but they did not adhere to it. There were no substantial grounds to justify this dismissal. The Company should not have dismissed Ms. S without a hearing.

4 HR Consultancy In addition to our range of HR Partnership Programmes, Adare Human Resource Management also provides a range of Consultancy Services, which can be appropriate when dealing with specific HR projects required to deliver agreed outcomes. In this case a HR consultant will act as HR Project Manager ensuring successful delivery. Please contact us to discuss any further HR initiatives you are interested in exploring. Legislation The legislation governing the area of unfair dismissals is based on a number of fundamental principles. Firstly, substantial grounds must exist to justify the termination of a contract of employment. Secondly, fair procedures must be adhered to. Finally, the principles of natural justice must be adhered to see below: Details of any allegations must be put to the employee. The employee must be afforded an opportunity to respond. The employee should be afforded the opportunity to avail of representation, defined in the Code of Practice as a colleague, or member of a registered Trade Union, but not any other person or body unconnected with the enterprise. The employee has a right to a fair and impartial determination of the issues concerned, taking account of relevant factors and evidence. Importance of a Disciplinary Procedure Many employers question the need for a disciplinary procedure at all. However, as can be seen from this case that in the legislation relating to dismissals, the disciplinary procedure is fundamental to the employment relationship. Additionally, where a claim of unfair dismissal is made, the EAT or the Rights Commissioner will examine the procedure followed to evaluate the fairness of the process. Having a documented procedure in place will assist the employer to ensure that situations are dealt with in the correct manner. If you have any queries in relation to Disciplinary Procedures, please contact Adare Human Resource Management s HR Helpdesk.

5 HR Helpdesk Query of the Month It is holiday season, last month we received numerous calls in relation to annual leave entitlements. Legal entitlement to paid holiday is provided for in the Organisation of Working Time Act, It covers all those working under a contract of employment or apprenticeship, employed through an employment agency, and most state employees other than the Gardaí and defence forces. There is no qualifying period for service. All time worked qualifies for paid holiday time. The Act also provides for entitlements in respect of public holidays. Minimum entitlements are as follows:- Four working weeks where the employee has worked at least 1,365 hours in the year this method is not used where a worker changes jobs during the leave year. One-third of a working week per calendar month in which the employee has worked at least 117 hours. Eight per cent of the hours an employee works in a leave year subject to a maximum of four working weeks. In other words eight hours leave for every one hundred hours or pro-rata. The following are other points that need to be considered:- After eight months work, an employee is entitled to an unbroken period of two weeks holidays which may include a public holiday. This entitlement may be decided by mutual agreement. It is illegal to pay an allowance in lieu of the minimum holiday entitlements unless a worker is actually leaving a job. The Employer should liaise with the employee when determining when annual leave should be taken but the employer must give at least one months notice to the employee or his / her trade union and the leave must be given either during the leave year or within the six months after it ends. If board and/or lodging is part of a worker s remuneration, his / her holiday pay must include compensation for the loss of these during his / her annual leave. If an employee on leave sends in a medical certificate stating that he or she is ill, the time covered by the certificate is not considered leave. For further advice and information in relation to Annual Leave entitlements contact the HR Helpdesk.