recruitment Employment Rights Information for Employers www.sigmar.ie
Introduction Contents Summary of Employers Obligations...2 Written Terms and Conditions...3 Notice...4 Pay and Wages...5 Working Time Rights...6 Record Keeping...7 Termination of Employment...8 Appendix I: Employment Legislation in Ireland...9 Appendix 2: Organisations that can assist with employment matters...11 When setting up or expanding a business with paid employees, employers should be familiar with a number of basic provisions under Irish employment law. The following is a brief guide for employers starting or expanding a business. Please note that this is not a legal interpretation of the legislation. Further information on employment rights is available on NERA s website, www.employmentrights.ie Summary of Employers Obligations As an employer, it is your responsibility to ensure all your employees receive certain basic employment rights. Although some industries require employers to meet different requirements, the main obligations include; A written statement of terms and conditions of employment A written statement of pay or payslip A minimum wage A maximum working week Unpaid breaks during working hours Annual leave from work A minimum amount of notice before termination of employment The maintenance of records in relation to your employees and their entitlements 2
Written Terms and Conditions Whilst a full contract of employment does not have to be in writing, The Terms of Employment (Information) Act, 1994 provides that an employer must issue their employees with a written statement of terms and conditions relating to their employment within two months of commencing employment. It must include the following: The full names of the employer and the employee The address of the employer The place of work, or where there is no main place of work, a statement indicating that an employee is required or permitted to work at various places Job title or nature of the work Date of commencement of employment 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 The rate of pay or method of calculating pay Whether pay is weekly, monthly or otherwise Terms or conditions relating to hours of work, including overtime Terms or conditions relating to paid leave (other than paid sick leave) Terms or conditions relating to incapacity for work due to sickness or injury Terms or conditions relating to pensions and pension schemes Periods of Notice or method for determining periods of notice A reference to any collective agreements which affect the terms of employment 3
Notice Both employees and employers are obliged to give notice in the case of termination of employment. Employees Employees who have been in continuous employment for at least 13 weeks are obliged to provide their employer with one week s notice of termination of employment. If a greater amount of notice is specified in the employee s contract of employment, then this notice must be given. Employers Employers must give employees notice dependent on length of the employee s service. Length of Service Thirteen weeks to two years Two to five years Five to ten years Ten to fifteen years More than fifteen years Minimum notice One Week Two Weeks Four Weeks Six Weeks Eight Weeks If the employer does not require the employee to work out any part of their notice, the employer is obliged to pay the employee for that period. 34
Pay and Wages National Minimum Wage Most experienced adult workers in Ireland are entitled to be paid 8.65 per hour. Pay Slips All employees are entitled to receive a pay slip with every payment of wages. This pay slip should show gross wage (wage before deductions) and the nature and amount of each deduction. Deductions An employer is allowed to make the following deductions from an employee s wage: Any deduction required or authorised by law (e.g. PAYE or PRSI, USI) Any deduction authorised by the term of an employee's contract (e.g. pension contributions, or particular till shortages) Any deduction agreed to in writing in advance by the employee (e.g. health insurance subscription, sports and social club membership subscription) 53
Working Time Rights Employers must ensure that employees are given adequate rest. The Organisation of Working Time Act, 1997 sets down the rules governing maximum working hours, daily and weekly rest breaks, annual leave and public holiday entitlements. Maximum Working Week The maximum an employee should work in an average working week is 48 hours. This working week average should be calculated over a four-month period. Breaks Employees are entitled to; A daily rest period of 11 consecutive hours per 24 hours A weekly rest period of 24 consecutive hours per seven days, following a daily rest period A 15-minute break if working 4.5 hours A 30-minute break if working six hours Payment for breaks is not a statutory entitlement. Some industries are covered by Registered Employment Agreements (REA's) and Employment Regulation Orders (ERO's), which may contain regulations regarding breaks. Sundays If not already included in the rate of pay, employees are generally entitled to a premium payment for Sunday working or paid time off in lieu. Some industries have REA s containing regulations on Sunday working. Where there is no collective agreement in place, the employer should look at the closest applicable collective agreement, which applies to same or similar work under similar circumstances, which provides for a Sunday premium. Protective Leave Employers are obliged to allow employees (who meet relevant qualifying criteria, if any) to avail of certain statutory protective leaves, such as maternity leave, health and safety leave, parental leave, adoptive leave, and carer s leave. There is specific legislation setting down the rules for each entitlement. Sigmar Tel: Recruitment +353 Tel: 1 +353 4744600 1 Email: 4744600 info@sigmar.ie Email: info@sigmar.ie 63
Record Keeping Many pieces of legislation establish clear statutory timeframes during which employers must maintain certain records relating to employees and former employees. The following list sets out the standard records to which a NERA Inspector will require access during the course of an inspection: 1. Employer registration number with the Revenue Commissioners 2. Full Name, Address and PPS Number for each employee (full-time and part-time) 3. Terms of Employment for each employee 4. Payroll details (Gross to Net, Rate per hour, Overtime, Deductions, Shift and other Premiums and Allowances, Commissions and Bonuses, Service Charges, etc.) 5. Copies of Payslips 6. Employees job classification 7. Dates of commencement and where relevant, termination of employment 8. Hours of work for each employee (including starting and finishing times, meal breaks and rest periods) 9. Register of employees under 18 years of age 10. Whether board and/or lodgings are provided and relevant details 11. Holiday and Public Holiday entitlements received by each employee 12. Any documentation necessary to demonstrate compliance with employment rights legislation Additional records may be required to be held depending on the sector/business involved and the legislation under which the inspection is being conducted. Sigmar Sigmar Recruitment Tel: +353 Recruitment 1 4744600 Tel: Tel: +353 +353 1 4744600 4744600 Email: Email: info@sigmar.ie Web: www.sigmar.ie info@sigmar.ie 7
Termination of Employment Employment contracts can be terminated in a variety of ways, such as dismissal, redundancy, or insolvency. Employers should be familiar with the rules relating to termination of employment in any of these contexts. To justify a dismissal, an employer must show that it either resulted from one or more of the following causes: The capability, competence or qualifications of the employee for the work s/he was employed to do The employee s conduct Redundancy The fact that continuation of the employment would contravene another statutory requirement Or that there were other substantial grounds for the dismissal A redundancy situation arises, in general, where a job no longer exists and the person is not replaced. Sigmar Tel: Recruitment +353 Tel: 1 +353 4744600 1 Email: 4744600 info@sigmar.ie Email: info@sigmar.ie 8 3
Appendix I: Employment Legislation in Ireland Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act 2007: This legislation establishes a redundancy panel to consider certain proposed collective redundancies. The Act also removes the upper age limit for entitlement to redundancy payments. Employment Permits Act 2006: This Act updates the Employment Permits Act 2003, introducing the Green Card permit and revising the legislation on work permits and spousal permits. Employees (Provision of Information and Consultation) Act 2006: This legislation sets establishes minimum requirements for employees' right to information and consultation about the development of their employment's structure and activities. From 23 March 2008 it applies to employers with at least 50 employees. Parental Leave (Amendment) Act 2006 amends the Parental Leave Act 1998 which provides for a period of unpaid parental leave for parents to care for their children and for a limited right to paid leave in circumstances of serious family illness (force majeure). Safety, Health and Welfare at Work Act 2005: This legislation replaced the provisions of the Safety, Health and Welfare Act, 1989 when it came into operation on 1st September 2005. It consolidates and updates the existing health and safety law. Changes include the provision for higher fines for breaches of safety legislation. Adoptive Leave Act 2005: It amends the Adoptive Leave Act, 1995 which provides for adoptive leave from employment principally by the adoptive mother and for her right to return to work following such leave. Maternity Protection (Amendment) Act 2004: It includes new provisions relating to ante-natal classes, additional maternity leave and breastfeeding, making significant improvements to the Maternity Protection Act 1994 which covers matters such as maternity leave, the right to return to work after such leave and health/safety during and immediately after the pregnancy. Equality Act 2004: This legislation makes significant amendments to the Employment Equality Act 1998 which prohibits discrimination in a range of employment-related areas. The prohibited grounds of discrimination are gender, marital status, family status, age, race, religious belief, disability, sexual orientation and membership of the Traveller community. The Act also prohibits sexual and other harassment. The Equality Act also amends the Equal Status Act 2000 to extend the definition of sexual harassment and shift the burden of proof from the complainant to the respondent. European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003: This legislation applies to any transfer of an undertaking, business or part of a business from one employer to another employer as a result of a legal transfer (including the assignment or forfeiture of a lease) or merger. Employee s rights and entitlements are protected during this transfer. Protection of Employees (Fixed Term Work) Act 2003: This legislation protects fixed-term employees by ensuring that they cannot be treated less favourably than comparable permanent workers and that employers cannot continually renew fixed term contracts. Under the Act employees can only work on one or more fixed term contracts for a continuous period of four years. After this the employee is considered to have a contract of indefinite duration (e.g. a permanent contract). Organisation of Working Time (Records) (Prescribed Form and Exemptions) Regulations 2001: The main purpose of this EU Regulation is the requirement by employers to keep a record of the number of hours worked by employees on a daily and weekly basis, to keep records of leave granted to employees in each week as annual leave or as public holidays and details of the payments in respect of this leave. Employers must also keep weekly records of starting and finishing times of employees. Protection of Employees (Part-Time Work) Act 2001 - this replaces the Worker Protection (Regular Part-Time Employees) Act, 1991. It provides for the removal of discrimination against part-time work- 9
Organisation of Working Time (Records) (Prescribed Form and Exemptions) Regulations 2001: The main purpose of this EU Regulation is the requirement by employers to keep a record of the number of hours worked by employees on a daily and weekly basis, to keep records of leave granted to employees in each week as annual leave or as public holidays and details of the payments in respect of this leave. Employers must also keep weekly records of starting and finishing times of employees. Protection of Employees (Part-Time Work) Act 2001 - this replaces the Worker Protection (Regular Part-Time Employees) Act, 1991. It provides for the removal of discrimination against part-time workers where such exists. It aims to improve the quality of part-time work, to facilitate the development of part-time work on a voluntary basis and to contribute to the flexible organisation of working time in a manner that takes account of the needs of employers and workers. It guarantees that part-time workers may not be treated less favourably than full-time workers. Carer's Leave Act 2001 - this provides for an entitlement for employees to avail of temporary unpaid carer's leave to enable them to care personally for persons who require full-time care and attention. National Minimum Wage Act 2000 - introduces an enforceable national minimum wage. Organisation of Working Time Act 1997 - regulates a variety of employment conditions including maximum working hours, night work, annual and public holiday leave. Protection of Young Persons (Employment) Act 1996 - replaced previous legislation dating from 1977 and regulates the employment and working conditions of children and young persons. Terms of Employment (Information) Act 1994 - updated previous legislation relating to the provision by employers to employees of information on such matters as job description, rate of pay and hours of work. Unfair Dismissals Act 1993 - updates unfair dismissals law and amends previous legislation dating from 1977. 10
Driving In Ireland Appendix 2: Organisations that can assist with employment matters. National Employment Rights Authority - NERA NERA is an Office of the Department of Jobs, Enterprise and Innovation. NERA aims to secure compliance with employment rights legislation and to foster a culture of compliance in Ireland through five main functions: Information, Inspection, Enforcement, Prosecution and Protection of Young Persons. Web: www.employmentrights.ie Information Service Lo-Call 1890 80 80 90 For callers outside Ireland + 353 59 91 78990 Citizens Information Centres Citizens Information Centres around the country provide information, advice and advocacy on all rights and entitlements. The service is free, confidential and independent. Some centres also offer specialist services such as legal or financial advice. Web: http://www.citizensinformationboard.ie Telephone: 1890 777 121 or (01) 606 9000 Companies Registration Office The CRO holds company information, incorporates and registers business names, enforces the Companies Acts in relation to filing obligations and makes certain information available to the public. Web: www.cro.ie Telephone: (01) 804 5200 Employment Appeals Tribunal The Employment Appeals Tribunal is an independent body established to provide a speedy, inexpensive and relatively informal means for adjudication of disputes on employment rights. Web: www.eatribunal.ie Telephone: (01) 631 3006 The Department of Enterprise, Trade and Employment The Department of Enterprise, Trade and Employment s mission is to work for Government and the people to equitably grow Ireland's competitiveness and quality employment. Web: www.entemp.ie Telephone: (01) 631 2121 Equality Authority The Equality Authority is an independent body set up under the Employment Equality Act to promote equality and address discrimination in organisations and society. Web: www.equality.ie Telephone: (01) 417 3333 Health and Safety Authority The Health and Safety Authority is the state sponsored body in Ireland with responsibility for securing safety, health and welfare at work. www.hsa.ie Telephone: (01) 614 7000 Labour Court The Labour Court provides a free, comprehensive service for the resolution of disputes about industrial relations, equality, organisation of working time, national minimum wage, part-time work and fixed-term work matters. www.labourcourt.ie Telephone: (01) 613 6666 11
recruitment, established 2002, is a leading Irish recruitment services company with specialist expertise across the entire recruitment process and managed service spectrum. We employ over 100 staff, in seven offices, throughout Dublin, Cork, Galway, Singapore and Poland. Our experience extends across Multilingual, IT, Banking & Finance, Accountancy, Engineering, HR, Insurance, Legal, Sales, Marketing, Office Support, Supply Chain and Pharmaceutical. Sigmar has extensive experience working with both start up and established organisations. Sigmar s commitment to training & development and progression has meant that we attract and retain some of the Industry s best recruiters. Our Services With the majority of our clients we provide Permanent, Temporary and Contract Services across all Sigmar Departments. The account management structure can vary due to the requirements on the individual client. Along with traditional lateral recruitment, we also provide several clients with additional services such as: Managed Recruitment Services Job Portal Design Employer Branding In Country Talent Acquisition Outsourced Payroll Management Annual Salary Benchmarking and on request On-site Recruitment Specialists Panel Interviewing Specialists Employer PR Consultancy Talent Mapping Partnership with a global occupational psychology consultancy Dublin 13 Hume Street, Dublin 2 Tel:+353 1 4744600 Cork 33 South Bank, Crosses Green, Cork Tel:+353 21 431 5770 Email: cork@sigmar.ie Galway 4th Floor, Dockgate, Dock Road, Galway. Tel:+353 91 563 868 Email: galway@sigmar.ie www.sigmar.ie