Case Law: Big Fine for Not Providing Employment Documents!
A Dental Technician was awarded over €13,000 after her claims, of not being provided with written employment terms, Unfair Dismissal, and lack of notice pay, were upheld.
The negative consequences of not providing appropriate employment documents were highlighted in this recent Workplace Relations Commission case (ADJ-00034847).
Background
The complainant, Sarah O’Connor, worked as a Dental Technician for the respondent, Cas Dental.
O’Connor alleged that she had not received a written statement of her terms of employment, or a disciplinary procedure, or an employee handbook.
The complainant also explained that she did not receive a letter inviting her to the dismissal meeting. The dismissal meeting lasted about a minute. She was not given notice pay or the right to appeal.
Defence
Mr Colum Sower, a director of the respondent, explained that he thought he had a period of one year to issue an employment contract and this was his understanding based on advice he had received from the Small Business Association.
Mr Sower gave evidence that he issued the complainant with verbal warnings and a written warning before the dismissal, although there was no final written warning or formal improvement plan.
A notice payment was not made, but the complainant was given a payment for good will.
The respondent accepted the procedure used was not perfect but argued that the complainant had not met the required performance standards and there are serious consequences of not meeting standards in the medical profession.
WRC Decision
The WRC Adjudicator found that the claim of not being issued with written terms of employment was well founded. The respondent was ordered to pay compensation of four weeks’ remuneration to the complainant.
The claim of lack of notice pay was also upheld and the WRC Adjudicator ordered the respondent to pay one week’s remuneration to the complainant.
The WRC Adjudicator concluded that the Unfair Dismissal claim was well founded.
There were breaches of the Code of Practice on Grievance and Disciplinary Procedures, including no opportunity for representation at the dismissal meeting, and serious procedural flaws. The Adjudicator concluded that no reasonable employer would have dismissed the complainant in the circumstances and in this manner. The respondent was ordered to pay €12,000 compensation to the complainant.
Takeaways for Employers
It is essential to comply with the legal requirement to provide employees with written terms and conditions of employment within the required time limits. The excuse of receiving incorrect advice was not accepted by the WRC Adjudicator.
Bright Contracts clients can quickly and easily create legally compliant terms and conditions of employment using the step-by-step instructions in our software.
It is also important to understand legal obligations relating to notice pay.
Bright Contracts includes a legally compliant template contract clause about notice.
Finally, failure to follow reasonable procedures can result in serious consequences. In the O’Connor v Cas Dental Case, the respondent suffered reputational damage and was ordered to pay significant amounts of compensation.
Bright Contracts has a ready to go Employee Handbook which clients can tailor to their requirements. Policies and procedures are reviewed and updated in line with employment law changes and recommended practices.
The Importance of HR Policies & Procedures
HR Policies are formal rules and guidance for managers and employees setting out how to manage a range of employment issues in the workplace.
A policy is a guiding principle used to set direction in an organization. It should be used as a guide to decision making under a given set of circumstances within the framework of objectives set out by senior management
A procedure is a particular way of accomplishing something. It should be designed as a set of series of steps to be followed as a consistent and repetitive approach or cycle to accomplish an end result
Purposes of HR Policies and Procedures
HR policies and procedures give guidance on a range of employment issues for employees, managers and others with responsibility for people.
They:
- Set clear standards and expectations and creates awareness
- Transparently communicates the conditions of employment
- Ensures employees are treated equally and fairly
- Creates a safe and healthy work environment
- Creates a channel for addressing employee grievances and disputes
- Mitigate risks
How to communicate HR Policies
- Must be issued to all employees
- Must be in writing (company handbook)
- Employees must be informed of policies on commencement of employment
- Employees must sign off on policies
- Policies must be accessible and reviewed frequently
- Managers must be coached and sufficiently trained.
Rather than incorporating policies into the contract, you may consider;
- Referring to the policies and procedures and where they can be found
- Confirm that they don’t form part of the employee’s contract of employment
Essential Policies
- Some essential policies that should be included are:
- Disciplinary
- Grievance
- Dignity in the workplace (Bullying, Harassment, etc)
- Equal Opportunities
- Health and Safety Policy
- Retirement Policy
- Right to Disconnect
- Whistleblowing Policy
- Probation Policy
- Absence Policy
- Data Protection
- Confidentiality
- Hybrid Working
- Flexible Work
In order to build a good company, it is essential for employees to be able to work together peacefully. Having a proper set of policies and procedures in place can make this happen.
Bright Contracts handbook provides all the policies and procedures any SME would need. It allows you to edit the text to suit your company’s needs.
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Managing Annual Leave & Public Holidays
These topics create some confusion amongst employers, this blog post will hopefully line out any confusion that employers may have.
What is a public holiday?
A public holiday is nationally recognised day when most businesses and other institutions are closed. They usually occur on a special day or event. For example, St Patrick's Day and Christmas Day.
In 2022 we were introduced to a new once off public holiday that will take place on Friday, 18th of March. From 2023 there will be a new annual public holiday in February to celebrate St Brigid’s Day, it will happen on the first Monday in February.
When are the public holidays?
• New Year’s Day
• First Monday in February, or 1st of February if the date falls on a Friday (2023 onwards)
• Saint Patrick’s Day
• Once off public holiday (18th March 2022 only)
• Easter Monday
• First Monday in May
• First Monday in June
• First Monday in August
• Last Monday in October
• Christmas Day
• St Stephens Day
What are employees entitled to?
Most employees are entitled to a day paid leave on public holidays. There is an exception for certain part-time employees.
If you qualify for public holiday benefit, you are entitled to:
• A paid day off on the public holiday
• An additional day of annual leave
• An additional day’s pay
• A paid day off within a month of the public holiday
Part time employees are entitled to a day’s pay for the public holiday if they meet the following requirements:
• You have worked for your employer at least 40 hours in the 5 weeks before the public holiday
• The public holiday falls on the day you normally work
If you are required to work on the day the public holiday falls you are entitled to an additional day’s pay. If you do not work on the day, you should get one fifth of your weekly pay.
Annual Leave
We all know that employers are obliged to provide paid annual leave under the Organisation of Working Time Act, 1997. This act applies to all employees working under a contract of employment.
The amount of holidays an employee receives is calculated by the amount of work the employee does in the leave year.
If an employee works 1365 hours in a leave year they will be entitled to 4 normal working weeks of annual leave.
To calculate annual leave for employees who have worked less than 1365 hours in the annual leave year, they receive one-third of a week for each month that 117 hours are worked or 8% of the hours worked up to a maximum of 4 working weeks.
Accrual of Annual Leave
Employees will begin to accrue annual leave from the first date of employment.
Accrued from hours:
- Physically and notionally worked
- All time on certified sick leave
- Time worked on public holidays
- Annual leave itself
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Employee Inductions: The Complete Guide
Workplace induction is the process of getting new employees familiar with your business. This includes helping them get comfortable with their new jobs and providing them with information to make them valuable team members. Research suggests that induction programmes benefit both employers and employees.
A good induction program sets the tone and expectations for employees. It also details their relationship with managers and the organisation. It helps new employees know the purpose, functions, and tasks of their job.
Topics to Cover During Induction
Usually, managers and supervisors are responsible for handling workplace induction. Induction training needs to include practical information that immerses the employee into the company culture. Meeting new colleagues and getting familiar with the workplace are essential. Everybody wants to feel welcomed and secure on their first day.
Heath and Workplace Safety
Learning health and safety procedures on the first day is necessary. This includes going over any specific safe work procedures your company has.
Documents and Policies
During induction make sure each employee fills out and signs all necessary employment paperwork. You should also help employees understand the incident reporting system at your company. A strong understanding of workplace procedures allows new employees to be the most dependable team members from the beginning.
Benefits of an effective induction programme
A well-designed induction programme results in a positive first experience of an orgaisation. It means the employee:
- Settles in quickly
- Integrates into their team
- Understands the oganisation’s values and culture
- Feels supported
- Becomes productive quickly
- Works to their highest potential
Without an effective induction, new employees can get off to a bad start, and lack clarity on their role and how it links to the organisation’s goals, which could impact on their intention to stay in the role.
What to avoid in Induction
- Providing too much, too soon - the inductee must not be overwhelmed by a mass of information, especially on the first day.
- Pitching presentations at an inappropriate level - where possible, presentations should be tailored to consider prior knowledge of new employees.
- Creating an induction programme which generates unreasonable expectations by overselling the job.
- Creating an induction programme that focuses only on administration and compliance but does not reflect organisational values.
An effective induction programme should be engaging and reassure the new employee that they have made the right decision to join the business.
The induction process should be evaluated to determine whether it is meeting the needs of the new recruits and the organisation. This should include opportunities for feedback at the end of the induction process and allow new recruits to highlight areas for improvement.
As well as getting feedback from new employees, it is important to identify key measures of success of the induction process.
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How to Prevent Discrimination in the Workplace
Workplace discrimination is based on certain prejudices and occurs when an employee is treated unfavourably because of gender, sexuality, race, religion, pregnancy, or disability. Discrimination generally falls into two principal categories, known as direct and indirect discrimination.
Direct Discrimination
Direct discrimination occurs when one individual receives less favourable treatment than another based on one or more of the nine grounds set out in the employment equality legislation. If a woman is paid less than a man to do the same job for no reason other than being a woman, this would represent direct discrimination.
Indirect Discrimination
Indirect discrimination occurs when neutral requirements unjustly disadvantage a certain category of persons. An example of this may be requiring candidates for a manual labour position to have fluent English. This would put Irish nationals in a better position to secure the position over foreign nationals.
Discrimination by Association
Discrimination by association occurs when a person is treated less favourably based on their association with a person protected by one of the nine grounds. If someone is experiencing harassment at work because they are in a relationship outside work with a foreign national this would represent discrimination by association.
Discrimination by Imputation
If an employee is incorrectly identified as belonging to one of the categories of a person described under the nine grounds and receives less favourable treatment than colleagues this will amount to discrimination by imputation. If it is incorrectly assumed that an employee has a certain religious belief and that employee is treated less favourably on this basis this will be discrimination by imputation.
It's important to know that discrimination is carried out by individuals. Your organisation is liable for any actions carried out by an employee in the course of their employment. It is important to take action to reduce the possibility that any discriminatory action occurs.
As part of the action plan to reduce the risk of discrimination occurring within your organisation, you should ensure that all employees:
- Understand that the organisation is committed to preventing all forms of discrimination
- Are aware of and understand their roles and responsibilities with respect to promoting equality and diversity
- Know how to seek advice and make a complaint in respect of discrimination
- Are confident that the employer will treat any complaint seriously and that it will be dealt with promptly and fairly
- Understand that any incident of discrimination will be viewed as a serious disciplinary matter
- Understand the types of behaviour that will be regarded as discrimination.
Providing Training
You should ensure that all managers and supervisors undertake training in ensuring that the workplace remains discrimination-free. Equality training should not be confined to management-level employees. Training, information and skills development in relation to equality should be provided to staff at all levels throughout the organisation. All such training should be structured so that it is accessible to all employees.
- You can communicate on equality issues through:
- Induction training
- Tailored in-house awareness training programmes
- Employee briefings
- Staff representatives
- Information on staff notice boards
- In-house magazine articles
- The staff handbook and policy manual
- Line manager and employee guides
It is important that there is action taken to ensure that discrimination is not in the workplace.
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How to Handle Employee Resignations
When an employee resigns the employee will usually give full contractual notice of their resignation. However, an employee sometimes resigns in the heat of the moment. Regardless of the situation, you need to handle the situation properly.
What is Resignation?
Resignation is when an employee informs their employer that they’re quitting. The employment relationships can end in various ways, including:
- An employee gives you their notice of resignation by speaking with you or handing in a letter of resignation
- If your business ends the contract of employment
- When an employee reaches justifiable retirement age.
Once an employee has notified you of their intention to resign, they must complete a notice period. The length of this notice period can be found in the employee’s contract of employment.
During this period you can begin to search to find a replacement for the role.
Notice Periods in Ireland
Notice periods in Ireland vary by each employee’s employment contract. The employee’s length of service is also taken into account. However, there are two common types of notice to keep in mind:
Contractual notice: You can decide the amount of contractual notice an employee must give. For example, two months’ notice may be required for an employee who has worked with your business for two years.
Statutory notice: This is the length of notice an employee is legally required to give. This will depend on their length of service.
If an employee has worked with your business for at least 13 weeks, they must give you at least one week’s notice.
What to do when an employee resigns?
When an employee decides to resign, it is natural that you may try to convince them to stay. If instead, you accept the resignation, there are some key steps to follow:
Get the resignation in writing
Written confirmation of the resignation must include the employee’s name, the date, and a signature.
Respond to the resignation
Acknowledge your acceptance of the resignation. This can be a written or verbal response.
Prepare a handover pack
A handover pack can come in handy for when the departing employee’s replacement starts
Conduct an exit interview
An exit interview will give you the opportunity to understand the employee’s reasons for resignation. This is also a good chance to listen to feedback for further improvements.
Retrieve business property
Make sure to retrieve any business property from the departing employees. These items can include computers, devices, uniforms, etc.
Lastly, remember to end the professional relationship on a positive note. You never know but the departing employee may wish to return to the company in the future.
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Hiring Employees in Ireland
There are a number of steps you need to take when hiring employees in Ireland. This blog will help you get what you need to start hiring.
Background Checks
Under the Criminal Justice Act 2016, an adult will not have to disclose his or her conviction in respect of a range of minor offenses after seven years.
Data obtained by employers must be processed and held in compliance with data protection legislation. If a third party is conducting the background checks, the employer remains a data controller under the EU General Data Protection Regulation (GDPR) and the Data Protection Act 2018, and the third party acts as a processor as it would be processing the personal data of candidates on behalf of the employer.
The employer must ensure that the third party conducts all processing in compliance with the GDPR.
Medical Examinations
Individual offers of employment can be made conditional upon satisfactory health checks, but a prospective employer may be liable under a discrimination claim if the offer is not confirmed based on the information disclosed by the health check.
Drug and Alcohol Testing
- Employers are required to ensure the safety, health, and welfare at work of all employees. This includes ensuring the prevention of improper conduct or behaviour that is likely to put employees at risk. An employer may require an applicant to submit to a drug or alcohol test to the extent that this is required to ensure that the applicant may safely carry out the proposed role. These tests must be necessary and proportionate.
Contract of Employment
Employers are required to provide employees with key terms and conditions of employment within five days of commencing employment, commonly referred to as ‘The 5 Core Terms’. These include:
- The full name of the employer and employee
- Address of the employer
- The expected duration of the contract (temporary or fixed-term)
- The rate or method of calculating pay
- The employers’ expectations of working hours.
Forming a contract can be very complicated. That’s where Bright Contracts steps in. Bright Contracts breaks it all down into a logical series of questions and inputs. All you have to do is provide the answers. The software provides handy tips and guidance where questions might be difficult to understand.
Probationary Period
Although there is no statutory maximum probationary period, an employer will typically provide a probationary period of six months subject to extension at the employer’s discretion. In practice, probationary periods should not be longer than 11 months to ensure that an employee does not accrue service to maintain a claim under the Unfair Dismissals Acts.
When hiring employees in Ireland it is important to conduct necessary background checks, medical checks, drug/alcohol tests, and issue a contract of employment within five days of commencing employment.
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Don't Forget About Your Valuable Retention Tool - Stay Interviews
Exit interviews are common amongst many Irish workforces. They are used to determine what prompted an employee to leave and to provide a final chance to persuade them to stay. Stay interviews give an organisation an opportunity to assess what improvements can be made now to avoid further resignations. They provide a more personal platform than what is currently in place from engagement or satisfaction surveys. It also allows for the building of trust between employees and managers, where both parties can discuss ideas.
A stay interview conducted between a manager and an employee can give an overview of what encourages the person to stay, the improvements that can be made, and what caused them to look for external opportunities. Identifying these issues early and acting on them contributes to long-term retention, increased motivation, improved productivity, and overall success for both the business and its people.
What should a stay interview look like?
Interviews don’t need to be long; they can be completed in as little as 20 minutes. Key questions to cover in the meeting could be what employees look forward to and what they dread about work each day, whether they would recommend the company to others, what would make their role more satisfying and how they would like to be recognised and valued.
What happens after a stay interview?
Organisations that decide to conduct stay interviews should remember that their workforce will expect an outcome so be prepared to implement positive changes. Failure to do so can increase frustrations amongst staff and make them feel that their voice is not heard.
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How to Dismiss an Employee
Unfortunately, as an employer or business owner, you need to know how to dismiss an employee. No matter what the reason is there is a process that you should always adhere to.
The most important thing to consider is the reason for the termination and if you have taken any steps to try and assist your employee. If you are dealing with an underperforming employee, you shouldn’t automatically think of dismissing them. You should instead understand why the employee is underperforming and assist them in any way to help them improve.
Investigate the situation
The first thing that needs to be done if you are considering dismissing an employee is to formally investigate the situation. Be sure that the documentation clearly outlines the initial complaint or disciplinary issue with the employee as well as the relevant details of the investigation itself. A full list of participants, including what was said in any of the interviews.
After completing the investigation, you may discover the complaints or performance issues that were raised in the interviews were a misunderstanding, a false allegation or not a fault of the employee in question. In most cases, the situation can be resolved with a conversation.
Provide a warning
If after investigating and you conclude that the employee is at fault, you will need to provide them with an official warning. Where the complaint is minor or does not require further action no other disciplinary action needs to be taken.
For more serious incidents, make sure that the employee understands that you are giving them a warning and what the next steps will be if they fail to improve.
Be Professional
If you have conducted your investigations, issued a warning, and have proof of the breach of contract, then you have no option left but to dismiss your employee. For the protection of the company, it is vital that you have the right reasons and supporting evidence for the dismissal. When it comes to delivering the news, you must do this face to face with the employee.
You should adhere to the following points:
- Be prepared, and calmly explain the reasons for the dismissal
- Reiterate the previous warning that has been given and refer to the documentation
- Ensure that the process is short and does not linger for longer than necessary
For legal reasons, you should document and issue the dismissal in written format.
Honour existing agreements
Just because the employee has left does not mean that you can ignore any post dismissal laws that are in place. You must continue to follow both the company policy and legal protocols, including the payments for all hours worked up until the moment of dismissal. If you are required to give your employee two weeks’ notice you may dismiss them immediately, but you will need to provide them with the equivalent of two weeks’ pay.
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Unfair Dismissal Claims & How to avoid them
An unfair dismissal can occur when your employer terminates your contract of employment with or without notice or the employee terminates their contract of employment with or without notice due to the conduct of your employer.
A dismissal is automatically considered to be unfair if you are dismissed for any of the following reasons:
- Membership or proposed membership of a trade union or engaging in trade union activities
- Religious or political opinions
- Legal proceedings against an employer where you are a party or a witness
- Race, colour, sexual orientation, age, or member of the Traveller community
- Pregnancy, giving birth or breastfeeding or any matters connected with pregnancy or birth
- Availing of rights under legislation to maternity leave, adoptive leave, parental leave, carer’s leave, parental leave, or force majeure leave
- Unfair selection for redundancy
Steps to avoid Unfair Dismissal
Have clear policies
It is important to ensure that all new and current employees have access to the companies’ policies regarding harassment, dress code and attendance policies. The policies must be easy to read for the employee and available to them at any stage during their employment. These policies are not only to keep employees informed but they are used as important reference points to use as the employer during the disciplinary process. Failing to follow these policies can result in an unfair dismissal claim.
HR & Equality training
Employers need to make sure that the dismissal is thoroughly thought through beforehand and is not an impulsive retaliation to an employee’s actions. By providing training for all staff members involved in the dismissal process you will know that the process is being conducted legally.
Keep track of employee conduct
Terminating an employee can sometimes devolve into a he-said she-sad argument with no clear winner. Without proper documentation, it can be difficult to terminate an employee without fearing an unfair dismissal claim. When you begin to see that an employee might not be suitable for your company, start keeping track of their misconduct. Use a word document or journal to keep track of any problems the employee encounters. For example, take note of any time they showed up late or were not dressed appropriately.
Implement a performance management plan
When you first discuss with the employee about potentially dismissing them, you will need to set up a performance management plan to give your employee a chance to improve. If you still need to terminate this employee, the document plan shows that you tried to help your employee. Employers can do this by setting up parameters and goals for their improvement.
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