When the love is gone! What happens when the employment relationship breaks down?
February might be the month of love, but what happens when the love ends in an employment relationship. How do you end that relationship?
The employment relationship can breakdown for a number of reasons and sometimes employers feel like they are left with no alternative but to terminate the employment.
Employee dismissal can be a dangerous area and employers can leave themselves at risk of an unfair dismissals claim. In 2014 the majority of all Employment Appeals Tribunal cases were unfair dismissal claims with the total awarded by the EAT reaching almost €5,000,000.
The key to avoiding such claims, particularly for small employers, is to take a step back from the emotion and aim to take a rational approach.
Furthermore, a second vital component of any dismissal case will be the Disciplinary Procedure. A disciplinary procedure sets out the process that should be followed in an employee dismissal. Without a disciplinary procedure in place it will be near impossible for an employer to defend any unfair dismissal claims against them.
It’s too late to implement a disciplinary procedure once there is an issue. Employers should protect themselves and put one in place immediately, ensuring that everyone in the organisation is familiar with it.
Some key components of any Disciplinary Procedure will include:
- Lists of unacceptable behaviours: let employees know what is acceptable.
- Early informal intervention: never procrastinate; address issues as soon as they appear.
- A fair process: a tribunal will look to see if a process has been applied.
- Opportunity to Appeal: employees should always be given the opportunity to appeal any decision.
No matter how gross the crime, caution should always be applied when dismissing an employee. For that reason it is always advisable to seek external assistance.
Bright Contracts - Employment Contracts and Handbooks
€150,000 awarded to four Tesco Workers
Tesco has been ordered to pay out over €150,000 in compensation to four of its former staff who were wrongly sacked as a result of a flawed disciplinary process by the company.
The retailer fired the long-serving staff members for failing to pay immediately for food they consumed on 2 different occasions, even though it was common practice among all employees to pay for the meals at a later stage.
Employees at the branch were not allowed to carry cash or purses in the cáfe at the time, as per company policy, and as such paying for food from the tip jar was the norm. Therefore the practice had arisen out of necessity because the employees could not carry cash on their person while on duty.
The four women were suspended with full pay after a security guard witnessed them serving themselves food without appearing to pay for it. Based on CCTV footage Tesco claimed the four staff members had breached company policy and had engaged in theft and fraud.
All four women stated they believed they had done nothing wrong but would have ceased the practice immediately if they had been informed they were in breach of company policy.
The tribunal said the conduct of Tesco's disciplinary and appeal process into the allegations was unsatisfactory and described some of its findings as "irrational". It further noted that Tesco's honesty and purchase policies are not sufficiently clear when it comes to the consumption of food by employees.
Accordingly the Tribunal found that the company's dismissal of the four employees was disproportionate and the EAT ordered the Irish division of the British Grocery company to pay a total of €153,521 - awarded in sums of €61,918, €41,000, €35,000 and €15,103 to the quartet.
Bright Contracts - Employment Contracts and Handbooks
2016 What's in Store?
2016 is set to be another busy year in employment law! Key changes we all need to be aware of include:
• Minimum Wage Increase
From this month the minimum wage has increased by 50 cent from €8.65 to €9.15. The increase is a result of a recommendation made by the Low Pay Commission, set up to advise the Government of minimum wage rates. For more information on the change please see here.
• Casual Contracts Review
One of the most frequently asked questions that come into the Bright Contracts support team is with regard to Casual Contracts and Zero Hour Contracts. Casual contracts offer employers, particularly small employers, flexibility to meet changing business needs at a low cost. They are crucial to the success, and often survival, of many Irish businesses. Therefore it is with great anticipation that we await changes in the law surrounding the use of both casual contracts and zero hour contracts. Consultation is due to close in January and it expected that the Minister will move quickly thereafter.
• Paternity Leave
Budget 2016 saw the announcement of paternity leave in Ireland. From 2016 Irish fathers/partners will now be entitled to 2 weeks paid paternity leave on the birth of a baby. It is expected that the new legislation will be effective from September 2016. The rate of pay for paternity leave has yet to be announced, however it is likely that it will be in line with Maternity Benefit, currently €230 per week. Further reading on paternity leave is available here.
As always, Bright Contracts will be keeping track of all changes and will be keeping customers up-to-date.
Bright Contracts - Employment Contracts and Handbooks
When Bad Weather Disrupts Employees' Commutes
Floods, snow, ice, wind – winter weather conditions can have a detrimental effect on your staffs’ ability to get to work on time, or to get to work at all in some cases. The question is how can you manage the situation?
Below are some Top Tips to help you get through the winter season.
Employees are not legally entitled to be paid if they are delayed or unable to get to work because of travel disruption. However, it is important to be aware of any custom and practice in the organisation or contractual clause, which may override this position.
Employers should also consider the impact of deducting pay on employee morale, particularly if the employee has made every effort to get to work but the weather conditions make it impossible to get to the workplace, or the workplace is closed through no fault of the employees.
The general advice to employers is to be as flexible as possible. The handling of bad weather and travel disruption can be a real opportunity for an employer to boost staff morale and show yourself as an all round fair employer. Possible considerations might include:
- Can you be flexible with regard to working hours or working patterns?
- Is it possible for employees to work from home or even at a different location?
- Would it be possible for the employee to work back the time missed at a later date?
- Rather than deducting pay for time missed you could offer that the employee take annual leave for the time. Whilst offering this as a solution is recommended, enforcing it without the agreement of the employee would not be best practice.
A company policy on absence due to inclement weather should address the situation where employees are unable to attend work, due to weather-related circumstances. Having such a policy should also mean there is much less scope for confusion and disagreement. An Inclement Weather policy is contained within the Optional Sections of the Bright Contracts Handbook.
Whatever option you do go with, make sure it is clearly communicated and consistently applied to all staff. It will make managing the situation a lot easier when it does arise.
Bright Contracts - Employment Contracts and Handbooks
2015 Employment Round Up
2015 has been one of the busiest years in employment history. We have summarised the main changes below:
Workplace Relations Commission (WRC)
The WRC has replaced NERA, the Labour Relations Commission, the Equality Tribunal and the first instance functions of the Labour Court and the Employment Appeals, changing the entire employment landscape in Ireland. Key consequences of the WRC include:
- It is now easier for employees to bring claims against employers and for employers to respond to them
- Claims will be dealt with much more quickly
- Mediation and early dispute resolution are encouraged
- In order to promote higher levels of compliance with employment law, employers can now be penalised with “on the spot” fines from a WRC Inspector
Accrual of Sick Leave Whilst on Sick Leave
From 1 August 2015 employees will now accrue annual leave whilst on long term sick leave. See here for further information.
National Minimum Wage
A Low Pay Commission has been set up to advise the Government annually on appropriate minimum wage levels. In its first report it recommended a 50 cent increase in minimum wage from €8.65 per hour to €9.15 per hour. This increase will come into effect in January 2016.
Industrial Relations (Amendment) Act 2015
The main changes as a result of the Act are:
- Greater clarity around Labour Court investigations of trade disputes
- The reintroduction of Registered Employment Agreements (REAs)
- The introduction of Sectoral Employment Orders (SEOs)
2016 looks set to be an equally eventful year with the introduction of Paternity Leave and the review of Zero Hour Contracts. As always employment law is ever changing!
Bright Contracts - Employment Contracts and Handbooks
Work Christmas Party - Don't Get Left with an Employment Law Hangover
It’s the Christmas Party season, the time when employers treat their employees to slap-up dinners and drinks, to thank them for their hard-work throughout the year. However, employers need to be aware that they are liable for the conduct of employees at a Christmas party, even if the party takes place away from the place of work. Employers can avoid being left with an employment law hangover by taking some simple precautions.
Below are some helpful tips to help employers relax and enjoy the Christmas Season
- Plan well: ensure everyone is included, even those on maternity leave. If using an external venue be sure it is accessible to all.
- Remind your employees of the rules: don’t be a party pooper, but beforehand remind staff of acceptable and unacceptable behaviour and remind them of any appropriate company policies e.g. bullying and harassment policies.
- Food and Drink: avoid offering a free bar, possible offer limited drink vouchers and if providing alcohol be sure to supply food.
- Make sure staff get home safe: employees are your responsibility, consider providing taxis, or provide list of local taxi firms, be sure nobody drinks and drives.
- Leave work at work: avoid discussing work issues, managers should avoid discussions about performance, promotion, salary or career prospects
So long as you follow the tips provided there’s no reason your Christmas party shouldn’t be an enjoyable night for you and your employees.
Bright Contracts - Employment Contracts and Handbooks
A No Show is a Big No
The Workplace Relations Commission have released statistics revealing that a huge of 35% of employment tribunal cases are “no-shows”.
Employers failure to attend Employment Appeals Tribunal hearings is becoming a somewhat common occurrence and is extremely risky. This coupled with a tribunal’s annoyance that the employer didn’t show up will no doubt end up in the employee winning an award that the employer will be legally obliged to pay.
In a recent case where an employer failed to attend a hearing the employee was awarded €55,000 based on uncontested evidence.
If you are facing a tribunal case, the advice is to attend!
Bright Contracts - Employment Contracts and Handbooks
Minimum Wage - Employers, are you up-to-date?
The Minimum Wage is set to increase from 1 January 2016. The rate for adults will rise from €8.65 to €9.15 per hour, an increase of 50 cent.
Minimum Wage applies to all employees, including full-time, part-time, temporary and casual employees, the only exceptions are for close relatives of employers and apprentices under the Industrial Training Act 1967.
The new rates are listed below
- Experienced Adult Worker - €9.15
- Under the age of 18 - €6.41
- In the first year after the date of first employment over the age 18* - €7.32
- In the second year after the date of first employment over age 18* - €8.24
* Employment experience prior to age 18 is not taken into account for these rates.
Sunday Pay
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.
The Living Wage
Recently there have been discussions around the introduction of a Living Wage of €11.50 per hour. Supporting bodies believe this is the required rate of pay in order to have an acceptable standard of living. However, for many small employers such an increase would pose a significant financial burden, which could result in the loss of jobs, rather than the creation.
Compliance
The Workplace Relations Commission (WRC) holds responsibility for securing compliance with the minimum wage, formerly held by NERA. In 2014 almost 5,600 inspections were carried out on random workplaces across Ireland. These resulted in €861,416 of unpaid wages being recovered.
The Message for Employers
Employers need to be compliant with the minimum wage. Employers need to be sure they remain compliant come 1 January, when the new rates come into effect. To avoid confusion and stress come the holiday period, employers should be looking at reviewing pay rates and contracts of employment now.
Bright Contracts - Employment Contracts and Handbooks
Accrual of Holidays Whilst on Sick Leave
Workers can now accrue annual leave whilst on long-term sick leave.
This is a major change in employment legislation and came into effect on 1 August 2015 with the introduction of the Workplace Relations Bill.
The new legislation brings Ireland in line with European employment law. In addition, and perhaps more importantly for employers, it aims to strike a balance between protecting the rights of vulnerable workers who are ill and trying to minimise the cost to businesses, something which is a constant challenge for employers.
Key facts you need to know
- From 1 August employees on sick leave can accrue annual leave
- The leave must be certified, therefore will generally apply to those on long-term sick leave
- The accrual of annual leave will not apply to any periods of sick leave prior to 1 August 2015
- Any leave accrued must be taken within 15 months of the end of the leave year in question
- If an employee leaves employment they should be paid in lieu of any accrued leave
This is a major change in employment legislation. Employers need to familiarise themselves with the new legislation and more importantly they need to review their absence policy to ensure that it reflects the new changes.
All appropriate Bright Contracts policies have been reviewed and updated to reflect the changes. Users need just to log in to their software to avail of the software.
Bright Contracts - Employment Contracts and Handbooks
Irish enterprises are lacking human resources functionality
A recent survey, carried out by The HR Department, has found that fewer than 6 out of 10 small & medium sized Irish enterprises invest in a human resources function, despite the fact that 93% of them believe HR plays a crucial role in business.
The research also revealed that more than a third (35%) of businesses surveyed do not have a staff handbook.
68% of companies that employ 1-10 employees have no HR whatsoever and more than a third (36%) of companies with 11-50 employees also have no HR function.
40% of companies surveyed gave the reason for not investing in a dedicated HR professional or outsourced service because they felt their business was too small to need it, followed by 16% of companies who felt the cost was too much, whereas some 11% of those surveyed felt they have a good enough relationship with their staff and therefore do not require a HR function.
The survey of 600 SME's across the country found that technology, communications, banking, manufacturing & finance are the industry's most likely to invest in HR, whilst the hospitality, retail & business service sectors would be the least likely to invest.
This misconception can lead to serious problems and costs for companies if they have a NERA inspection or a dispute with an employee. Bright Contracts has everything you need to get a professional staff handbook and employee contracts in place for each of your employees -in accordance with the requirements of the Terms of Employment (Information) Act 1994.
Bright Contracts - Employment Contracts and Handbooks
