Tesco are in the news again!
Tesco Ireland has confirmed it is seeking to cut pay and conditions for about 6% of its 14,500 employees. With this move close to 1000 of Tesco's employees will be hit with significant pay cuts.
The supermarket retailer has announced that it is seeking to transfer some "longer serving staff" from their pre - 1996 "inflexible" contracts to conditions agreed upon during negotiations with trade unions in 2006.
The company's spokesperson said that "our pre-1996 contract does not meet the needs of today's customers and was greed 20 years ago at a time when stores didn't open on Sundays or late nights. As a result we have too many colleagues rostered during our quietest days instead of our busiest; and guaranteed overtime which doesn't take account of the needs of each store or give colleagues equal opportunity to work overtime when it arises.
Mandate, the trade union representing the majority of affected workers, claimed cuts could cost workers about €6,500 a year but added the would be strongly opposed by staff. Shock and anger and now led to determination as the workers say they will resist any changes that are pushed through without negotiations. The mischievous attempts to attribute these cuts to "customer services" has gained no traction with anyone.
It aims to implement the changes by mid-April. Staff generally earn €11.97 per hour on the 2006 contracts, those at the upper end of the pay scale earn €14.31. The majority of those on pre-1996 contracts would be at this upper end given the length of their tenure with the company, says Mandate.
The retailer has said it would compensate workers for loss of earnings and would work out the extent of this compensation in discussions with staff and unions in the coming weeks.
Bright Contracts - Employment Contracts and Handbooks
Accessing employee emails, what you need to know.
As an employer you have the right to monitor your employees’ work phone calls, emails and internet access on company devices. This was reaffirmed recently in a case heard by the European Court of Human Rights (Barbulescu v Romania). In reaching their decision, the Court was heavily influenced by the company’s internal policies, banning the use of company property for personal purposes and informing all employees that surveillance would take place.
What does this case mean for employers?
- Comprehensive Internet Policies: it is a must for employers to have internet usage policies in place. These policies should clearly state the rules on how employees should use the internet, as well as how monitoring is conducted. All policies should be clearly communicated to staff.
- Regular Reviews: the world of communication is fast moving; company policies should be regularly reviewed to take account of this and tailored to meet the needs of individual organisations.
- Monitoring: monitoring of email and internet usage should never be done covertly. In order to avoid a culture of mistrust in the workplace, monitoring should be done cautiously, ideally only where an employer can show that they had specific reasons for doing so e.g. as part of a disciplinary investigation.
- Personal Equipment: Whilst monitoring can be done on work devices employers are not permitted to monitor an employee’s own personal device. In some workplaces the use of personal equipment can be disruptive and often a health and safety issue. In managing this issue employers are advised to consider separate policies outlining when such equipment may be used.
Bright Contracts - Employment Contracts and Handbooks
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
