Updates to Probationary Periods
The European Union (Transparent and Predictable Working Conditions) Regulations 2022 came into force in Ireland on 16 December 2022.
These regulations introduce significant changes to the law on contracts of employment and working conditions for employees, but the new rules in relation to probationary periods in contracts of employment are of particular importance.
New Rules on Probationary Periods
In the private sector, the probationary periods of employees should not exceed 6 months. ‘In the interest of the employee’, the maximum duration for a public servant's probationary period is now 12 months. There is no further guidance on what is envisioned as being in the interest of the employee.
An employee may avail of certain categories of protected leave during the probationary period (maternity, adoptive, carer’s, paternity, parental, parent’s or sick leave). If this arises, the probationary period shall be extended by the employer for the duration of the employee’s absence.
These Regulations also amend the Protection of Employees (Fixed-Term Work) Act 2003 to require that probationary periods in fixed-term contracts be proportionate to their duration and nature. There must be no probationary period for contracts that are renewed or extended (for the same work).
If an employee was subject to a probationary period which exceeded 6 months on the date the Regulations came into force (16 December 2022), and if at least 6 months of probation has been completed by the employee, then the probationary period shall expire on the earlier of:
(i) the date the probationary period was due to expire
(ii) 01 February 2023.
We therefore recommend that employers review their current contracts of employment to check if any employees have contracts with probationary periods for longer than 6 months. This includes circumstances where any initial probationary period has been extended, as these periods should have expired on 1 February 2023 or earlier.
Probationary periods are a very useful tool for both employers and employees to trial the working relationship and ensure that the parties are a good fit and work well together. A well drafted contract will normally provide for a short notice period during the probationary period (customarily one week).
Employees will not usually have the benefit of the Unfair Dismissals Acts until they have achieved 12 months’ continuous service. Termination of an employee during the probationary period, and in accordance with the contract, can be a lower risk and efficient way to terminate an underperforming employee.
A probationary period does not, however, give an employer automatic authority to terminate employees and if allegations of misconduct, protected disclosures or discrimination, etc., occur legal advice should be sought.
Other 2023 Developments
There are multiple proposals for reform in the pipeline, which employers should keep an eye out for and review current practices and policies to ensure they comply with the upcoming changes. Further information on expected developments is below:
Flexible and remote work
Draft legislation is in place to allow eligible employees with children up to the age of 12 (or 16 if the child has a disability or long-term illness) and employees with caring responsibilities to request flexible working arrangements for a set period of time for caring purposes.
Employers will need to carefully consider and deal with these requests. While remote working will not be feasible for all employees, employers will still have to consider their own needs and the needs of their employees when considering a request. This looks like it won’t be in force until Summer 2023.
Steps towards a potential four-day working week are gaining momentum with some employers trialling the effectiveness of, or implementing, a four-day week for their organisations. While this may not be relevant to a lot of categories of staff, it is a trend employers should keep an eye on.
Family rights
Draft legislation is in place to allow a better work-life balance for parents and carers. The proposals include:
- five days' unpaid leave for medical care purposes
- an extension of the period during which time can be taken out from work to breastfeed
- the extension of maternity leave entitlements to transgender men
- 10 days' paid leave for victims of domestic violence
Employers should review existing processes with a view to preparing for and ultimately implementing these changes.
An additional proposal is to allow the bereaved parent of a child who has died to take bereavement leave. In relation to miscarriage, while paid maternity and paternity leave upon stillbirth or miscarriage is currently only available after the 24th week of pregnancy, there are proposals to make provision for paid leave before the 24th week. The proposals also provide for paid leave for the purposes of availing of reproductive healthcare such as in-vitro fertilisation.
Employment permits
Draft legislation is in place to streamline, improve and modernise the employment permit system. The proposals include a new type of employment permit for seasonal workers, allowing subcontractors to make use of the employment permit system, and additional eligibility conditions for certain employment permits to be specified.
Wage changes
Several pieces of legislation are being debated around minimum wages for interns and young people. A national "living" wage (the wage people need to take part in Irish society) is also to be introduced over a four-year period, to be in place by 2026, when it will replace the national minimum wage. The first step towards reaching the living wage is the 2023 increase to the national minimum wage. A number of large employers in Ireland have already announced increased wages for their employees in anticipation of the proposed living wage.
Other trends and policy areas to watch
Many employers may be considering embarking on redundancy or restructuring programmes during 2023. However, alongside the economic downturn and the continuing cost-of-living crisis, there is an ongoing skills shortage and battle to attract good people. It is therefore expected that there will be ongoing efforts to do the right thing and create the right culture through:
- menopause policies
- fertility policies
- focus on managing mental health
- embrace flexible and remote working including remote working from overseas locations
Celebrating Women in Tech with Eleanor Vaughey
At Bright we celebrate all our employees achievements and progress in the Tech industry everyday and with International Women's Day last week we wanted to shed a light on some of our amazing women at Bright but we didn't want to just do it for one day, as all our employees deserve to feel the spotlight every day of the week. So this week we are shining a light on Eleanor Vaughey who works in our Marketing department. Eleanor sat down with us to talk about who inspires her in her career and why diversity in the workplace is important.
Question: Is there anyone that inspires you in your career?
Eleanor: All of the bosses I’ve had throughout my career have been women. There are a lot of women in my life who are in leadership roles too – teachers, doctors, managers. I’m very fortunate to have a lot of inspirational women in my life.
Question: Why do you think diversity in the workplace is so important?
Eleanor: I think it’s important for different ideas and viewpoints. It enriches the workplace and provides opportunities for broader and deeper perspectives everything – from bigger picture strategies to quick weekly brainstorms.
Question: What is the most important piece of advice you have been given?
Eleanor: That we can do anything, once we have the resources and tools available to us. And if we don’t know how to do something, it’s just because we haven’t had the opportunity to discover and access those resources yet.
Question: On International Women’s Day, what is the most important message you want to send out to young women thinking about their careers?
Eleanor: Don’t be scared to try out a role because you think you’re not smart enough or capable. Nobody starts out as an expert, ever. Go all in and be brave. And if it doesn’t work out, at least you tried it out and are wiser from it, rather than never trying at all.
There's much to celebrate about women's achievements. Gains are made for women worldwide, but there's more to do. Collectively, we can all challenge gender stereotypes, call out discrimination & draw attention to bias. Let's #EmbraceEquity to create places & spaces where women thrive.
Celebrating Women in Tech with Neeraja Sankar
At Bright we celebrate all our employees achievements and progress in the Tech industry everyday, but with International Women's Day being upon us we wanted to shed a light on some of our amazing women by gathering a few of our Bright women and hearing what International Women's day means to them, who the inspiring women in their lives are, an important piece of advice they have been given and much more. We recently interviewed Neeraja Sankar who has given us her thoughts on IWD.
Question: Why do you think diversity in the workplace is so important?
Neeraja: Although this is a IWD piece, I think diversity, beyond gender diversity, can be incredibly beneficial for an organization. A diverse workforce means our people can bring to the table varied opinions, thoughts, and viewpoints because of their different backgrounds – the more varied our perspectives, the more innovative and agile we can be as a company. For a company like Bright that is constantly evolving, and thinking of better ways to meet our customers’ needs, this diversity in viewpoints is invaluable and in turn, leads to increased employee engagement and morale.
Question: What is your proudest achievement whilst working here?
Neeraja: Our HR team once shared a candidate was drawn to interviewing for Bright, specifically because our leadership team had a good gender balance (we’re working toward making this even more balanced!) – whilst this is not a direct achievement of mine, I felt incredibly proud that I am part of a leadership team that is aspirational for people.
Question: What advice would you give to the next generation of female leaders?
Neeraja: Believe in yourself and your potential but balance that with being humble and self-aware
Have a strong sense of purpose, and let it be the foundation for what kind of leader you want to be
As a leader, you often have to ask yourself “who can I work on this with?” - surround yourself with people who have similar principles to yours, and inspire confidence through your actions and vision
Seek out a mentor – having a mentor can do beneficial with building your confidence and opening doors to new opportunities
Question: What is the most important piece of advice you have been given?
Neeraja: This is not direct advice that was given to me but I learnt a lot when from a leader I worked with, who was excellent at bringing people along in her journey. As mentioned above, leadership a lot of the time is working with others, and this particular leader I worked with was always looking for opportunities to build and lift her team up. She was good at recognizing others’ strengths, and empowered and equipped them to contribute to their full potential. This worked wonders for her, her team and the organization she worked for. This principle of elevating people I work with and bringing them along in my personal journey as a leader underpins my approach to work and leadership.
There's much to celebrate about women's achievements. Gains are made for women worldwide, but there's more to do. Collectively, we can all challenge gender stereotypes, call out discrimination & draw attention to bias. Let's #EmbraceEquity to create places & spaces where women thrive.
Celebrating Women in Tech with Aisling Hetherington
At Bright we celebrate all our employees achievements and progress in the Tech industry everyday, but with International Women's Day being upon us we wanted to shed a light on some of our amazing women by gathering a few of our Bright women and hearing what International Women's day means to them, who the inspiring women in their lives are, an important piece of advice they have been given and much more. We recently interviewed Aisling Hetherington who has given us her thoughts on IWD.
Question: What does IWD mean to you?
Aisling: For me, International Women’s Day is a day to celebrate the achievements of women both in and out of the workplace. From years ago, when my mother's generation were encouraged to stay at home or to give up work once they became mothers, to a world where we are encouraged to excel in our careers while also having a family. Sometimes this can be a balancing act and working for such a family friendly and supportive organisation as Bright makes this a lot easier. This is not the case in other organisations and in some countries where women face ongoing struggles for equal rights and opportunities. While I personally don’t think that gender makes a difference to your ability to carry out a job or have a successful career, it is well known that for a long-time, women have faced more challenges in the workplace. Thankfully, there is more awareness about this now (for example the gender pay gap) and we have seen great changes over the last number of years. This is an ongoing journey to improving equality for women.
Question: On International Women’s Day, what is the most important message you want to send out to young women thinking about their careers?
Aisling: They can achieve anything that they set their heart on, regardless of their gender and there is nothing that can hold them back. They should never doubt their ability or limit themselves. I have always worked hard in my career and given my all to the organisation I am working for. It is also important to switch off outside of work with family and friends. It’s great if the career path and job chosen when they finished school is one they enjoy and are passionate about. It’s also possible to change this path at any stage of their life so should never be afraid to take on something new. I know this from first-hand experience.
Question: How can we encourage more women to pursue senior leadership roles in their career?
Aisling: Organisations have responsibilities to encourage women to pursue senior leadership roles and provide the education and training to prepare them for it. Typically, these roles require time commitments that may go beyond the 9-5 workday. This is something that should be reviewed and changed if it is noticed occurring regularly in the organisation. It is important for organisations to recognise that people have responsibilities outside of the office. So many studies have been completed now looking at the working hours, working days, flexible and hybrid options, and work-life balance. Organisations need to value their employees and senior leaders and recognise that they have commitments outside of the office, regardless of their gender. Some days, more attention may be needed to a person’s home life than to their work life. I was very lucky early in my career that I had many women (and men) in leadership positions who encouraged me to take on new roles, education, projects and challenges and guided me throughout my career. Some people may not have the belief in themselves and so, if you are in a senior leadership position, actively seek out and support talented women in the organisation, take them in as a mentee and offer them the encouragement to advance their career.
Question: Have you faced any barriers in your career due to being a woman? If so, how did you overcome them?
Aisling: I have not had barriers as such but have had challenges to overcome. One of these was juggling a career, studying and 2 children as a single mum. Despite the challenges I faced, I managed to overcome these with the support of family, friends, and colleagues. I don’t think this is unique to me, or to me as a woman, as many people face barriers and challenges as they navigate their own careers. I think sometimes attitudes of others can have an impact at times and create barriers. I personally don’t see my gender as a barrier to achieving success. I appreciate that this is not the same experience as others have had and continue to face. For a large part of my career to date, I worked in the healthcare industry which typically had more female than male employees and as a result quite a few women in senior leadership positions. Perhaps this is why I do not see these barriers and I have certainly not seen them since joining Bright last year.
There's much to celebrate about women's achievements. Gains are made for women worldwide, but there's more to do. Collectively, we can all challenge gender stereotypes, call out discrimination & draw attention to bias. Let's #EmbraceEquity to create places & spaces where women thrive.
Happy International Women's Day!
Happy International Women's Day!
At Bright we celebrate all our employee's achievements and progress in the Tech industry every day, but with International Women's Day being upon us we wanted to shed a light on some of our amazing women by gathering a few of our Bright women and hearing what International Women's day means to them, who the inspiring women in their lives are, an important piece of advice they have been given and much more. We also included some of our Bright men who shared their experiences and opinions with us too.
On IWD2023 and beyond, everyone everywhere can help forge an inclusive world. Let's #EmbraceEquity to create places & spaces where women thrive.
Domestic Leave Updates
The Government has now approved the publication of the Work Life Balance and Miscellaneous Provisions Bill 2022, which will introduce five days of paid leave for those suffering from, or at risk of, domestic violence.
When enacted, this legislation will support workers to remain employed and maintain financial independence, allowing them space to seek the necessary support. This is the first statutory employment benefit when it comes to domestic violence, and its introduction will significantly impact employees suffering from, or at risk of, domestic violence.
Who can avail of the leave?
Any employee who has a contract of employment can avail of the leave. This includes part-time employees and fixed-term employees. There is no minimum service requirement for employees to avail of this leave. The Bill provides that employees are entitled to paid domestic violence leave from their employer where the employee or a "relevant person" has experienced in the past, or is currently experiencing, domestic violence.
What does "relevant person" mean?
A relevant person is defined in the Bill as:
- the spouse or civil partner of the employee;
- the cohabitant of the employee;
- a person with whom the employee is in an intimate relationship;
- a child of the employee who has not attained full age; or
- a person who, in relation to the employee, is a dependent person.
How does the Bill define domestic violence?
Domestic violence is defined as violence or the threat of violence, including sexual violence and acts of coercive control that has been committed against an employee or a "relevant person" by any of the following:
- the spouse or civil partner of the employee or relevant person;
- the cohabitant of the employee or relevant person;
- someone who is, or was, in an intimate relationship with the employee or relevant person; or
- child of the employee or relevant person who is of full age and is not, in relation to the employee or relevant person, a dependent.
What is the purpose of the leave?
The purpose of domestic violence leave is to enable victims of domestic violence to seek medical help, obtain counselling, relocate, seek advice or assistance, or obtain a safety order from the courts. As the leave also extends to relevant persons, employees may avail of the leave to assist the relevant person in any of these ways.
How many days leave are employees entitled to under the Bill?
Employees will be entitled to five days paid domestic violence leave in any period of 12 consecutive months.
What will the prescribed rate of pay be for employees availing of the leave?
The Bill provides that the Minister for Children, Equality, Disability, Integration and Youth may make regulations to prescribe the daily rate of domestic violence leave pay, which may be capped at a maximum daily amount.
Will employees be required to show proof of domestic violence?
No, employees will not be required to produce proof of domestic violence to avail of the leave.
Currently is status of this Bill is in Stage Four in the Seaned. The Bill, as initiated, is available here.
Once further updates have been given will we also provide further updated guidance.
Auto-enrolment: What You Need to Know
The government has announced details of a new auto-enrolment pensions savings scheme. It’s designed to encourage workers to save for their retirement and make it more straightforward for businesses to offer a workplace pension option.
What is auto-enrolment?
Auto-enrolment is a pension investment scheme for employees, which involve their employer matching their contributions of a set percentage of their gross income with a top-up from State funds.
An estimated 750,000 employees earning more than €20,000 per annum and aged between 23 and 60, and who are not already enrolled in an occupational pension scheme, will be automatically enrolled in the new scheme.
The accumulated funds plus investment returns will be paid to participants upon their retirement in addition to the State pension, at age 66.
How auto-enrolment will work?
All employees – current and new – who fit the eligibility criteria and who are not already enrolled in a workplace pension scheme will be automatically enrolled in the new scheme.
Eligibility
- Employees aged between 23 and 60 earning more €20,000 per annum
- Those earning below the income threshold or aged outside of the parameters will be able to opt in to the system.
- Members of an existing occupational pension scheme won’t be automatically enrolled for that employment. Employees who are on probation, or are casual or working on a part-time basis will be assessed by a new Central Processing Authority (CPA) to determine eligibility.
Opting in/out option
All eligible employees will be automatically enrolled in the scheme. Participation is optional and operates on an opt-out basis.
Employees who have been automatically enrolled can choose to opt out or suspend their participation after six months. Those who opt out will be auto-enrolled after two years have elapsed and they can opt out again after another six months.
When will the auto-enrolment scheme begin?
The scheme is to launch for the end of 2023 and paid contributions to start from January 2024.
Contributions will be gradually phased in over 10 years, with employee and employer payments beginning at a modest level of 1.5% and increasing every three years by 1.5% until they reach 6%.
How businesses can prepare for the new legislation?
The workplace pension scheme is designed to minimise the administrative burden on employers who will not need to set up and run an occupational pension scheme.
Instead, employers will be responsible for recording employee-related data via a simple payroll instruction. The scheme will begin at a modest level in 2024 and increased at a set rate until 2034. This gives your business time to prepare for the scheme.
You’ll need to review the following areas and plan accordingly:
- Payroll
- Contracts
- Communication with employees
- Financial management
An employer who fails to fulfil their obligations under the scheme, including implementing a payroll instruction for enrolment, and/or deduction or remittance of contributions as required, will be subject to penalties.
Employment contracts
In advance of the legislation coming into force, you’ll need to review employment contracts.
You should consult your solicitor well in advance of the January 2024 roll-out to ensure your employment contracts are updated to include the provision for pension contributions and any other legal details required.
Communication with employees
Employers have a full year to ensure employees fully understand the scheme before it begins in January 2024. This will give you time to communicate with your employees about how it will work.
You should provide details of the scheme and advise employees on the four fund options, how much they will contribute, tax implications and the benefits of the scheme, including the employer and State contribution.
Employee contributions will be taken from net income, after deductions of income tax, pay related social insurance (PRSI) and universal social charge (USC).
Tax relief won’t apply in respect of these contributions. Instead, the State tops up the pension fund at 33% of the employee contribution.
Participants in the new scheme will still be entitled to receive a ‘benefit-in-kind’ tax exemption in respect of their employer’s contribution.
Signing of the Transparent and Predictable Work Conditions Regulations 2022
On 16 December 2022, the government signed into law the European Union (Transparent and Predictable Working Conditions) Regulations 2022 to fulfill Ireland's obligations under EU Directive 2019/1152 on transparent and predictable working conditions.Employers should be aware of the changes resulting from this legislation. In addition to creating new employee rights, the Regulations amend employers' obligations under the Terms of Employment (Information) Act 1994, the Organisation of Working Time Act 1997, and the Protection of Employees (Fixed-Term Work) Act 2003.
With limited exceptions, the Regulations apply to all employees in Ireland, except for those with less than four consecutive weeks' service or working fewer than three hours per week.
Employers must now provide general written terms of employment to their employees one month after they begin employment. The information employers must provide within 5 days of the start of employment and within one month has also been changed.
The written statement of employment must be:
- signed and dated by the employer,
- in writing, and
- It may be transmitted on paper or electronically, provided the employee has access to it, the employee can store and print it, and the employer retains proof of its transmission or receipt.
If an employee's terms are changed, the employer must notify the employee in writing as soon as the change takes effect.
Probationary Periods
There have been significant changes to probationary periods. It is no longer possible to extend probationary periods beyond 6 months except in exceptional circumstances, and even then not beyond 12 months unless this would be beneficial to the employee. The duration of employee absence can be taken into consideration when extending a probationary period. In the event that an employee (other than a public servant) is subject to a probationary period exceeding 6 months and has completed at least 6 months service, the probationary period will end on the earlier of:
- the date on which the probationary period was due to expire, or
- 1 February 2023
As a final point, the Regulations also amend the Protection of Employees (Fixed-Term Work) Act 2003 to require that probationary periods in fixed-term contracts be proportionate to their duration and nature. There must be no probationary period for contracts that are renewed or extended (for the same work).
Mandatory Training
If an employer is required by law or by a collective agreement to train an employee, this training must include the following:
- be provided to the employee free of cost,
- count as working time, and
- where possible, take place during working hours.
Parallel Employment & "Incompatibility Restrictions"
The Regulations provide that an employer must not:
- prohibit an employee from taking up employment with another employer, outside the work schedule established with the first employer, or
- subject an employee to adverse treatment for taking up employment with another employer.
An employer may prohibit an employee from taking a job with another employer if the restriction is proportionate and objective. Where an employer imposes an "incompatibility restriction":
- details of the incompatibility restriction (including details of the objective grounds on which the incompatibility restriction is based) must be included in the contract, or
- the employer must provide a statement in writing setting out the incompatibility restriction (including details of the objective grounds on which the incompatibility restriction is based).
According to the Regulations, objective grounds include health and safety, business confidentiality, and avoiding conflicts of interest.
Collective Agreements/REAs
If the employment in question is covered by a collective agreement approved by the Labour Court or a Registered Employment Agreement, then the Regulations are disapplied in respect of probationary periods, the right to seek additional (parallel) employment, and the right to request transfer to a job with more predictable and secure working conditions and training.
Through more transparent and predictable employment, the Directive aims to improve working conditions. Among other things, it expands the information that must be provided to employees upon beginning employment and introduces new provisions such as the right to request transition to another form of employment with more predictable and secure working conditions (Article 12) and the right to mandatory training.
Employment outside the State and Changes for Posted workers
Also included in the Regulations is a new obligation to provide information to posted workers. Employees who are posted workers (under the European Union (Posting of Workers) Regulations 2016) must be given the following additional information:
- Employee's remuneration according to the host country's legal requirements,
- Travel, board, and lodging allowances and reimbursement arrangements specific to postings
- The URL of the single official national website (IMI Regulation, Regulation (EU) No 1024/2012) that is developed by the host Member State.
Additionally, the Regulations require employees working outside the State for a period of not less than one month to receive more information. It is now required of the employer to also tell the employee which country or countries the employee will be working in outside the State.
Right to request transfer to more predictable and secure working conditions
Once in a 12 month period, an employee who has been employed continuously by an employer for at least 6 months and has completed their probationary period (if any) may request a form of employment with more predictable and secure working conditions. Within one month of receiving such a request, an employer must provide a reasoned written response. When the same worker submits a similar request again, and the situation remains the same, employers may provide an oral reply.
The Finance Act 2022: Changes You Need to Know in 2023
Last year, the Finance Act 2022 was signed into law, and employers should be aware of certain things, such as an increase in the amount of qualifying vouchers employers can offer.
For the upcoming year, here are some changes employers need to know:
1. The Small Benefits Exemption
As of 2022, the annual limit for the Small Benefits Exemption was raised from €500 to €1000. The number of vouchers employers can offer each year has also been increased from one to two as part of this change.
2. Employer Reporting Requirements
The small gift exemption, travel and subsistence expenses, and the remote working daily allowance of €3.20, are all benefits employers are required to record and report to Revenue. The format and manner in which these benefits will be reported are subject to the commencement order and Revenue's guidance.
3. Bike to Work Scheme
As of 2023, the Bike to Work scheme will include cargo bicycles and e-cargo bicycles, reducing the threshold of tax-free benefits to €3,000.
4. Covid-19 Related Lay-Off Payment Scheme (CLRP)
Beginning in 2022, the Covid-19 Related Lay-Off Payment Scheme (CLRP) will be tax-exempt. As a result of Covid-19 related restrictions on layoffs, these payments are available to individuals who lost the opportunity to accrue reckonable service as a result of layoffs under the Redundancy Payments (Amendment) Act 2022. Those affected by this change include:
(a) those made redundant since 13 March 2020, or by 31 January 2025; and
(b) Those who were laid off during the COVID-19 restrictions from 13 March 2020 to 31 January 2022 but lost the opportunity to build reckonable service.
