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.
WRC Inspections: What you need to know
WRC inspectors carry out employment rights compliance inspections and associated enquires. In general, an employer will get advance notice of an inspection. In some instances, an inspector has the right to show up unannounced.
Inspectors have the following powers:
- To inspect and take copies of any documents or records
- To remove any books, documents, or records and retain them for such period as the inspector considers necessary for the purposes or their functions under the Workplace Relations Act 2015
- To require any person at the place of work or premises to produce such books, records or documents as the inspector may require for the purposes of their functions under this Act
- To examine any person who they believe to be or have been an employer or employee, and to require such person to answer questions as the inspector may ask relating to the employment.
Preparing for an inspection
Employers should always be prepared for a WRC inspection as these may happen at any stage.
Employers Checklist:
- Employers’ registration number with Revenue Commissioners
- A list of all employees: full names, addresses, and PPS numbers
- Dates of commencement and dates of termination of employment
- Written terms of employment for each of the employees
- Employee’s job classification
- A record of annual leave and Public Holidays took by each employee
- Hours of work for each employee (start and finish time)
- Payroll details: gross to net, rate per hour, overtime, deductions, commission, bonuses, service charges, etc.
- Evidence that Employees were provided with pay slips
- A register of any employees under 18 years of age
- Details of any board and lodgings provided
- Employment permits or evidence that permit is not required as appropriate for non-EEA nationals
The Inspection
Reasons:
- Response to alleged non-compliance
- WRC compliance campaigns- sector/legislation specific
- Routine inspections
Conduction of the inspection
The inspection will carry out an interview with the Employer or their representative. At this stage, all relevant records will be requested, calculated, and examined.
After examining the records, the inspector will interview a sample of employees to gather additional information. These findings will be shared with the employer.
If it appears that all is compliant, the inspector will issue a letter concluding the inspection.
Examining the records
Accurate records can protect employers from false allegations
The inspector will examine a sample of records over a period of one year prior to the examination. They will then determine if they should examine further records within the previous years from what they see in the first records.
Examples of inspection Offences
- Failure to pay the National Minimum Wage rate
- Failure to keep employment records for a period of 3 years
- Failure to give a statement of wages (e.g. payslip)
- Employing a person who is not an EEA or Swiss national without a valid employment permit or other valid permission to work.
Related Articles
The WHO?WHAT?WHERE? and WHY? Of The WRC
Hiring Young People in Ireland
Young employees are people aged 14 to 18, who work for an employer. As young workers are generally in full-time education, they are protected by a different employment law than adult workers. This is to make sure their work does not put their health or education at risk.
Restrictions on Employing 14 & 15 Year-Olds
By law, children ages 14 and 15 cannot be employed in regular full-time jobs.
However, they can:
- Do light work during the school holidays
- Take part in an approved work experience or educational program
- Work in film, culture, advertising, or sport
Working Hours for 14 & 15 Year-Olds
Outside school term time
Can work a maximum of 35 hours a week or up to 40 hours if they are on approved work experience.
During school term time
Children aged 14 are not allowed work during school time. Children aged 15 can do 8 hours of light work a week.
Restrictions on Employing 16 & 17 Year-Olds
Young people aged 16 and 17 can work a maximum of 8 hours a day, up to 40 hours a week.
Young people are only allowed to work between 6 am and 10 pm.
Paying Young Employees
All employees have a right to get a payslip. A payslip is a written statement from the employer that explains your total pay before tax, and all details of any deductions from pay.
Minimum Wage
Since 1 January 2022, the national minimum wage is €10.50 per hour. However, not everyone is automatically entitled to get this.
Aged 20 and over- €10.50 an hour
Under18 - €7.35
Aged 18 - €8.40
Aged 19 - €9.45
Your employer can pay you more than the minimum wage if they want, but they are not required to by law.
Employers’ Responsibilities
Employers must keep records for every employee under 18, including:
- The employee’s full name
- The employee’s date of birth
- The employee’s starting and finishing times for work
- The wage rate and total wages paid to the employee
The employer must keep these records for at least 3 years.
Employers must also give employees aged under 18 a copy of the official summary of the Protection of Young Persons (Employment) Act, and other details of their terms of employment within one month of taking up a job.
Employers with employees under 18 must also display the official summary of the Act in their workplace, where it can easily be read by staff.
Breaches of the Protection of Young Persons (Employment) Act
Employers who are found guilty of an offense under the Protection of Young Persons (Employment) Act can be fined up to €1,904.61 and an extra €317.43 a day for a continuing offence.
Related Articles:
Employee Inductions: The Complete Guide
The WHO?WHAT?WHERE? and WHY? Of The WRC
The Workplace Relations Commission, or as they are more commonly referred to, the WRC, are a body which companies discuss in hushed tones as we associate them with discrimination cases but do we all know exactly WHO they are and WHAT they do besides being the deciding body on employment law cases? I don’t think many of us are sure, which is why our blog post will dive into the WHO?WHAT?WHERE? and WHY? Of The WRC.
Established on the 1st of October 2015, The Workplace Relations Commission (WRC) is an independent, statutory body which is Irish government-operated, which decides cases of alleged discrimination under Irish equality legislation. It was established under the Workplace Relations Act 2015 which reforms the State’s employment rights and industrial relations structures to deliver a better service for employers and employees.
Previously there were 5 separate bodies which dealt with complaints and disputes relating to industrial relations, employment law and employment equality but under the new system there are now 2 statutory bodies, namely The Workplace Relations Commission and the Labour Court. The Commission has a board consisting of a chairperson and 8 ordinary members appointed by the Minister for Enterprise, Trade and Employment.
The WRC provides information on employment law, equality and industrial relations to employees, employers and representative bodies of employees and employers. The function of the WRC is to provide advisory and conciliation services. Upon request, the Advisory Service engages with employers, employees and their representatives to help them to develop effective industrial relations practices, procedures and structures. This assistance could include reviewing or developing effective workplace procedures in areas such as grievance, discipline, communications and consultation.
Conciliation is a voluntary process where the parties to a dispute agree to avail of a neutral and impartial third party who will assist them in resolving their industrial relations differences. How the WRC assists in this situation is they will provide an Industrial Relations Officer to chair negotiations with the view of steering the discussions and exploring possible solutions in a non-prejudicial fashion. Solutions are reached only by consensus, hence the outcome is voluntary.
WRC inspectors visit workplaces and carry out inspections of employer’s records to ensure compliance with employment and equality legislation. An inspection may arise as a result of a complaint being received of alleged non-compliance, a campaign focussing on a specific sector or a particular piece of legislation, or it may simply be a routine inspection. Where breaches of legislation have been found, the inspector may, depending on the legislation involved, issue either a compliance notice or a fixed payment notice to the employer.
The WRC also has responsibility for:
• promoting the improvement of workplace relations, and maintenance of good workplace relations,
• promoting and encouraging compliance with relevant enactments,
• providing guidance in relation to compliance with codes of practice approved under Section 20 of the Workplace Relations Act 2015,
• conducting reviews of, and monitor developments as respects, workplace relations,
• conducting or commissioning research into matters pertaining to workplace relations,
• providing advice, information and the findings of research conducted by the Commission to joint labour committees and joint industrial councils,
• advising and apprising the Minister in relation to the application of, and compliance with, relevant enactments, and
• providing information to members of the public in relation to employment
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WRC Annual Report 2017 – The Facts and Figures
The Work Place Relations Commission have published their third annual report, outlining the key performance metrics relating to complaints filed and decisions made across the employment realms.
One of the bigger achievements made by the WRC is a dramatic reduction in the length of time it takes to get a case to resolution. When the WRC was established in October 2015 it could take a case up to 2 years to secure an outcome whereas now, once submissions are received, it is taking less than 6 months.
Other Key Facts
• €1.8 million was recovered in unpaid wages; up €300,000 on the previous year
• 4750 workplace inspections were carried out, either announced or unannounced with over 99,000 employees covered by these inspections
• 14,001 complaints were received by WRC relating to:
- Pay – 27%
- Unfair Dismissal - 14%
- Discrimination and Equality - 11%
- Terms and Conditions of Employment – 8%
• Over 52,000 calls were received on the WRC information hotline, with just under half of these relating to employment permit queries.
• There were 4,370 adjudication hearing’s; up 24% on 2016
It is now almost three years since the formation of the WRC, and from the above figures it is clear that they are well into their stride and making significant inroads in terms of their objective of promoting the improvement of workplace relations, encouraging compliance with relevant employment and equality legislation. As such it is imperative that employer’s have the proper records in place in case of an inspection.
Solution
Bright Contracts allows the user to create and customise contracts of employment and company handbooks, this covers part of your obligation as an employer under current Employment Legislation.
To book a free online demo of Bright Contracts click here.
To download your free trial of Bright Contracts click here.
How long should you retain employee data under GDPR?
The General Data Protection Regulation (GDPR) will come into force on 25th May 2018, legislation with new rules and guidelines on how to protect and process personal data. Employee personal data held may include: name, address, phone number, email address, emergency contact details, PPS number, bank account details etc.
The GDPR requires that when retaining and processing personal data there must be lawful reasoning for doing so. In terms of processing employee data employers are likely to rely on a number of lawful reasons, mainly: to fulfill contractual obligations, legal obligations or other legitimate interests. Under data protection legislation employee data should be kept for no longer than is necessary, for the purpose that it was retained. However, when deciding how long to retain personal data employers should be guided by employment legislation.
So how long should I retain employee data?
Written Terms of Employment – 1 year
Employers must retain a copy of this statement throughout the employee’s employment and for one year after termination at a minimum.
Payroll details and Payslips – 6 years
Records, calculations and documents relating to the value of benefits for employees must be kept for 6 years in the event of an audit by Revenue. The WRC may also inspect these in an audit and seek evidence that employees are supplied with payslips.
Hours of Work – 3 years
Details of days and hours worked each week, annual leave and public holidays taken and payment received for same. Rest break records and/or records of notification of employees being fully informed about rest break entitlement and procedures if rest break is unable to be taken.
Maternity and Adoptive Leave Records – none
While there is no set period of the retention of data on maternity leave or adoptive leave records, claims can be made within 6 months of employers being informed of an issue giving rise to a dispute or extended to 12 months in exceptional circumstances.
Parental Leave – 8 years
Records of Parental Leave, including the period of employment of each employee and the dates and times of the leave taken, must be retained for 8 years.
A more detailed list of Employee Record Keeping Requirements can be viewed here.
Where legislation gives no guidance on record keeping requirements, employers should carefully predetermine, and include in any employee privacy notice, how long and the grounds they will use for retaining that data. For example; an employer may decide to retain all performance review records for the entire duration of an employee’s employment to monitor employee performance.
Whatever the reasoning behind retaining employee data – whether it be legal or other business reasons, employers need to ensure they have a clear policy outlining their reasoning, that this is easily accessible to employees and that the policy is consistently applied.
To book a free online demo of Bright Contracts click here.
To download your free trial of Bright Contracts click here.
Is it discrimination to top up maternity pay but not paternity pay?
September 2016 saw the introduction of Paternity Leave, that for the first time ever allowed fathers/partners to take two weeks paid leave on the birth of a child / placement of a child for adoption. Paternity Leave is paid at the same rate as Maternity Pay, currently €235 per week*, leaving it up to employers to decide whether or not they wish to top-up pay during the two weeks leave. The question then arose that if by topping up maternity leave, would an employer by default have to top up paternity pay?
A recent Workplace Relations Commission (WRC) case involving a transport company, provides useful guidance on the answer to this question.
In this case a male employee brought a case under the Employment Equality Act claiming discrimination on the grounds of gender due to the fact that the employer topped up maternity pay but did not top up paternity pay.
However the WRC Adjudicator held in favour of the Company, stating that maternity leave is different to paternity leave and that “the special protection afforded to women in connection with pregnancy and maternity is embedded in European and Irish law”. The Adjudicator concluded that the employer was entitled to make special provisions for women at the time of maternity leave and was protected in that regard by the Employment Equality Acts.
Conclusion
This case gives the green light to employers who wish to offer a maternity top up but not offer the same for paternity leave. Whatever it is you decide on, employers are advised to have clear paternity and maternity leave policies in place that is accessible to all employees.
*The rate of maternity/paternity pay will increase to €240 per week from end of March 2018.
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€15k awarded in discrimination case to pregnant employee
The Labour Court found that the sacking of a manager from Wrights of Howth’s Crabby Jo’s restaurant was tainted with discrimination and have awarded compensation of €15,000.
Background
The employee was on a 6 month probationary period when she was fired just 3 months into her employment, very shortly after informing her bosses that she was pregnant.
No issues had been raised about the employee’s performance, however poor work performance was used as the reason for her dismissal on the 15th of June. The employee felt that the atmosphere had changed completely after she had announced her pregnancy on the 8th of May, she had requested a meeting to discuss her concerns she had over this. She was given no opportunity to make any representations or defend her position and was simply informed, without warning, that her employment was terminated.
In its ruling, the court found that no issues had previously been raised about the employee’s performance prior to her notifying them that she was pregnant and she had not been subject to any disciplinary warnings or action. The court originally awarded €30,000 for discrimination based on gender, however this decision was appealed and a lesser figure of €15,000 compensation was awarded due to the manner of the dismissal and the serious lacking in adherence to the restaurant’s own disciplinary procedures.
Learning points
It is important to recognise that disciplinary procedures must be followed at all times, regardless of how simple or difficult a situation may seem to be. It can end up being a very expensive mistake for an employer. Bright Contracts has comprehensive Disciplinary and Grievance procedures, customisable to companies requirements, built into the software.
€7,500 awarded for unfair interview questions
The Workplace Relations Commission has awarded €7,500 to a woman they found was discriminated against during a job interview with Minister of State for Training, Skills, Innovation, Research John Halligan. Mr. Halligan, during the course of the interview, said to the woman “I shouldn’t be asking you this, but....are you a married woman? Do you have children? How old are your children?”
Mr. Halligan said that the questions were asked in good faith as he wanted to make her aware that flexible working hours to allow his staff to take care of their families is something that he encourages. The WRC however, found that the questions were discriminatory under the Employment Equality Acts 1998-2005.
The legislation defines discrimination as treating one person in a less favourable way than another based on any of the following 9 grounds:
- Gender
- Civil Status
- Family Status
- Sexual Orientation
- Religion
- Age
- Disability
- Race
- Membership of the Traveller community
When conducting an interview it is important for employers to build rapport with the candidate but they also need aware that asking questions or making comments in relation to the above 9 grounds will leave you at risk of a hefty discriminatory claim, even if you think you are just making small talk.
So what questions are appropriate and inappropriate to ask in a job interview?
Appropriate Interview Questions
- Are you able to perform the specific duties of this position?
- What days can you work? What hours can you work?
- Are you available to work overtime on occasion?
- Are you available to travel on occasion?
- Are you able to start work at 8 am?
- What are your long-term career goals?
- Do you have any responsibilities that would interfere with traveling for us?
Inappropriate Interview Questions
- Do you have or plan to have children?
- If you get pregnant, will you continue to work, and will you come back after maternity leave?
- What are your child care arrangements?
- Are you married /engage?
- How many children do you have? Do you have a babysitter available if we need you on a weekend? Do the working hours fit with your childcare?
- Do you have a baby or small child at home?
Employment and equality legislation doesn’t just start once you hire someone, it’s applicable the moment you post a job advert. With this in mind employers need to be mindful of what they say even when making small talk and building rapport with candidates before and after the job interview.
To view our full Interviewing Guidelines click here
Also see our blog ‘Be careful of discrimination in job interviews’ here
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How to avoid harassment in the workplace
The recent allegations against Harvey Weinstein n the US have created somewhat of a snowball effect worldwide with thousands of women and men speaking out about their accounts of sexual harassment and assault, many of them being work related. Allegations involving high profile individuals and people in authority have demonstrated just how widespread a problem this has become across all industries and professions and has exposed a sinister culture of silence, fear and acceptance which we must now turn on its head.
The Employment Equality Acts clearly defines sexual harassment as: forms of unwanted verbal, non-verbal or physical conduct of a sexual nature which has the purpose or effect of violating a person’s dignity and creating an intimidating, hostile, degrading, humiliating or offensive environment for the person.
It is important for employers to ensure that harassment will not be tolerated and to portray this to their employees and clients. Employers are therefore compelled to take steps to ensure a harassment-free work environment. Effectively, organisations must set down clearly defined procedures to deal with all forms of harassment including sexual harassment.
There are a number of steps an employer can take to help prevent this type of behavior from occurring in the workplace:
A Bullying and Harassment policy
- to protect the dignity of employees and to encourage respect in the workplace
An Equal Opportunities policy
- to create a workplace which provides for Equal Opportunities for all staff
A Whistle-blowing policy
- to enable staff to voice concerns in a responsible and effective manner.
Transparent and fair procedures throughout
Disciplinary action
- A sanction that is appropriate for the level of alleged harassment – to help try and change the culture of silence that has allowed harassment to become normal and protected.
Provision of on-going training
- At all levels within organisation
Bright Contracts has a fully customisable Staff Handbook, which includes a Bullying and Harassment Policy and also an Equality Policy and Whistleblowing Policy.
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