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7
Sep 23

Posted by
Charlotte McArdle

What is ESG?

Employment related matters are becoming a focus from an environmental, social and governance (ESG) perspective. For employers, it can cover broad issues such as diversity and inclusion, pay transparency, workforce engagement, HR policies, health and safety and more.

Therefore, it is becoming increasingly important for employers to ensure that they comply with new legislation and new standards. Otherwise, employers will not only face standard regulatory risks but they may also be exposed from an ESG perspective. Indeed, many employers who are particularly ESG conscious are seeking to go further than the statutory employment law minimums.

In recent years a large number of legislative changes designed to improve employee rights and security have been made. This flow of legislative change is unlikely to abate anytime soon as the EU Social Taxonomy Report proposes a system to classify what constitutes "decent work". This includes pay transparency, paying the living wage, decent working hours, formal working relationships, equal opportunities, reduction of pay gaps and job creation for young people. With this in mind, it is inevitable that further employment legislation and disclosure requirements are likely to come in over the coming years.

Diversity and inclusion

Diversity and inclusion has in recent years generated significant media attention. Positioning the promotion of an inclusive culture at the forefront of a company's business outlook is the way forward for businesses keen to secure a fully-rounded ESG strategy.

Diversity makes good business sense. Ethnic, gender and cultural diversity in management has been shown to boost business and is linked to both profitability and value creation.

From the social standpoint there are huge expectations on companies from employees, business partners and investors to have a strong focus on diversity and inclusion in the workplace. This is particularly the case amongst the younger generations of workers who are increasingly assessing employers' diversity and inclusion credentials when weighing up employment options.

The Gender Pay Gap Information Act 2021 required employers to publish details of the mean and median hourly pay and bonuses for men and women, the percentage receiving bonuses or benefits-in-kind, explanations for any gender pay gap that arose, and measures they will take to eliminate or reduce this gap. Currently in Ireland, employers with 250 or more employees have had to publish gender pay gap reports - but by 2024, this threshold will drop to just 150 employees and then 50 employees by 2025. More details can be found here.

There is due to be further legislative development in this area as the recently agreed Pay Transparency Directive (the ''Directive'') will soon require the further expansion of statutory obligations on employers in Ireland in respect of gender equality.

Under the Directive, companies will additionally be required to report the disparity of pay between genders, based on categories of workers, who are doing the same work or work of equal value. Member States will be required to establish clear criteria to assess and compare what qualifies as value for work in line with a set of objective criteria, which include educational, professional and training requirements, skills, effort and responsibility, work undertaken and the nature of the tasks involved.

One of the other key provisions of the Directive is the concept of a ''joint pay assessment,'' which will require a company to carry out an assessment where a gender pay gap report identifies a gap of at least 5% in any category of work and where that gap cannot be justified based on gender-neutral factors. Under the Directive, additional pre-employment provisions will also be implemented, whereby employers will now be precluded from inquiring as to an applicant's salary history, while also obliging companies to disclose the initial pay range for the advertised role.

While Irish legislation has not yet been drafted or initiated, the implementation date of the Directive is expected in 2024.

5
Sep 23

Posted by
Charlotte McArdle

Parental Leave Case Law Example

The Workplace Relations Commission (“WRC”) case of Elizabeth O’Reilly v Avista CLG was brought under Section 18 of the Parental Leave Act 1998 (“the Act”) in respect of the Complainant’s persistent issues with her employer in respect of her applications for parental leave. The Adjudicator confirmed that parental leave is an entitlement and that the Act only requires notice and not an application for approval unless an employee is applying for a period of parental leave that is shorter than a block of six weeks. On that basis, the Adjudicator directed the Respondent to amend its Parental Leave Policy to remove any requirement for approval for parental leave unless requested for a period of less than six weeks. She also ordered that the Respondent confirm the Complainant’s parental leave applications for 2024 and 2025 no later than 1st June 2023.

Facts: The Complainant was employed as a social care worker by the Respondent from October 2002. The Respondent provides housing support for people with intellectual disabilities and complex needs. Having had her first child in 2011, in 2014 the Complainant applied for parental leave which she intended to take in 2015. The Respondent agreed to providing this by reducing her hours over a period of 62 weeks. However, the Complainant made a number of further applications for parental leave, all of which were refused or altered by the Respondent. The leave requests were:

  1. In 2017, she applied for one 7-week leave block to be taken in the summer
  2. In 2018, she applied for one 7-week leave block to be taken that summer

Both of these requests were refused on the basis that the Respondent would be required to get agency workers to fill in for the Complainant. The Complainant submitted a claim to the WRC, which resulted in a failed mediation and the matter was returned to be heard by an Adjudicator. In 2019, the Complainant applied for parental leave by reducing her hours and this was also refused. Further requests for parental leave made in April and May were also refused so she brought a further claim to the WRC in February 2020. The Respondent requested details of her plans for the next five years, but the Complainant wanted to make an application on an annual basis. After failed mediation for this claim, it was returned to be heard by an Adjudicator, but was withdrawn by the Complainant when she was granted her leave for a 6-week block in August and September 2021. On foot of this, the Complainant made a further application in October 2021 for 7 weeks in 2022, which was again refused. This time the Respondent stated that it was being refused as one block but approved the parental leave to be taken by way of a reduction to her working hours. The reason given for this was to allow all employees two weeks holidays during the summer. Further requests for a block of leave for 2023, 2024 and 2025 or for reduced hours were not confirmed by the Respondent. It stated that it would confirm with the Complainant by 30th April each year and argued at the hearing that this met its obligation as it was in excess of the 4 weeks’ notice required to be given under the Act.

 Decision: Section 6 (1) of the Act states that

“An employee who is a relevant parent in respect of a child shall?be entitled?to leave from his or her employment, to be known and referred to in this Act as ‘parental leave’, for a period of 18 working weeks to enable him or her to take care of the child”. From September 2020, this period was increased to 26 weeks.

In order to avail of this entitlement, section 8 requires the employee to provide notice in writing to his employer at least six weeks in advance of the start date of the leave. The Adjudicator pointed out that the requirement to give “notice” is not a requirement to seek “approval” and she compared it to the entitlement in respect of maternity leave.

Section 11(1) of the Act provides for an employer to refuse the parental leave only on a limited basis – were

“the employer is satisfied that the taking of parental leave at the time specified in the notice would have a substantial adverse effect on the operation of his or her business, profession or occupation by reason of seasonal variations in the volume of the work concerned, the unavailability of a person to carry out the duties of the employee in the employment, the nature of those duties, the number of employees in the employment or the number thereof whose periods, or parts of whose periods of parental leave will fall within the period specified in the said notice or any other relevant matters, the employer may, by notice in writing given to the employee not later than 4 weeks before the intended commencement of the leave, postpone the commencement of the leave to such time not later than 6 months after the date of commencement specified in the relevant notice under section 8(1) as may be agreed upon by the employer and the employee”.

The Adjudicator pointed out that “employers are required to find ways to enable their employee to balance their family life with their working life”. The Adjudicator stated that where the employer does not meet the required justifications set out in Section 11(1) than parental leave may only be postponed by agreement between the employee and employer and the employer does not discretion to refuse an employee who gives notice of his or her intention to take parental leave.

The Adjudicator noted that the Respondent had not argued that it was “swamped” with applications for parental leave during the summer months. Perhaps if it had, there would have been grounds to refuse the application until a later date.

The Respondent’s Parental Leave Policy contains the following clause:

“Application for Parental Leave should be approved by your Senior Manager/Service Manager and then submitted to Human Resources for final approval in your Centre of Employment, not later than six weeks before the proposed commencement date under section 8(1) of the Act.”

The Adjudicator stated that this policy was misleading as it suggests that managers have discretion to “approve” an application and in fact provides for managers and HR to provide “final approval”. The Adjudicator therefore directed the Respondent to amend its policy and remove the word “approval” except in respect of parental leave requests for periods that are shorter than 6-week blocks.

The Adjudicator further directed the Respondent to provide confirmation to the Complainant of her parental leave for the summer of 2024 and 2025 by 1st June 2023 and to ensure that it has adequate cover for her parental leave of 2023, 2024 and 2025 as it had been given plenty of notice to provide same.

Takeaway for Employers: This decision clearly illustrates that employers must facilitate the taking of parental leave when sought to be taken in a minimum of a 6-week block and that an employer may only postpone such a request by no more than six months if it meets the justifications set out in section 11(1). The decision reminds employers that approval can only be sought if the request for parental leave is for a period of less than a 6-week block.

Posted in Employment Law, Parental Leave

23
Aug 23

Posted by
Charlotte McArdle

A Guide to Redundancy

Redundancy is a painful process for both the employee and the employer. It is a decision that many businesses seek to avoid but sometimes a restructure of the organisation or reducing the number of roles is necessary.
Redundancy occurs where an employee is dismissed for reasons such as:

  1. Employer ceasing business
  2. Requirements of the business have changed
  3. Employer requires less employees
  4. Change in work systems (mechanisation etc)
  5. Role amalgamation

It is essential when roles are being made redundant the selection and consultation process is fair and objective and those employees who are selected are done so in a transparent and fair manner. Most third-party claims in relation to redundancy are often based on the selection process.

Selection
There are two broad methods of selection for redundancy:

  1. Last in First Out
  2. Selection matrix: objectively selects employees for a redundancy based on a compiled score of their skills, knowledge, and other relevant criteria. The criteria must be as objective as possible, which should only be based on facts which have been documented and/or raised to the employee prior to the redundancy.

Employers would be bound by the precedent for redundancy selection in the company or agreed mechanisms between a union and the company. It is imperative that businesses are aware of the following two points:

  • Custom and practice – what did the company do in previous redundancies if any?
  • Agreed procedure – is there a precedent or an agreed procedure in place? This is more commonly seen in unionised work environments.

In terms of the recommended process, employers should make an announcement to the employee(s) – advise them they’re ‘at risk’ of redundancy, explain why this is happening and inform the employee you will then be entering into consultation with them.

Consultation

  • Consultation meetings should be arranged with the employee(s), an employee is entitled to bring representation i.e., colleagues/external union official.
  • During these meetings it’s important to give the employee(s) an opportunity to have their input/say into the situation.
  • Consider proposals for alternative roles/options – implement if feasible.
  • If there is no alternative roles/no other viable options – you are looking at proceeding to termination – and give notice of redundancy.
  • Ensure notes are taken at each meeting and request that the employee(s) sign these to confirm they are an accurate reflection of the items discussed.
  • Consider offering a right to appeal the redundancy decision.
  • Redundancy process should not be rushed - there should be at least a minimum of two weeks for consultation.
18
Aug 23

Posted by
Charlotte McArdle

Jury Service - FAQ

The Juries Act 1976 places a civic duty on individuals to provide jury service when chosen to do so by random selection. The Act has a number of provisions aimed specifically at an employer’s obligations to employees who are requested to undertake jury service. We have set out these obligations through a set of FAQs.

Do employers have to provide paid time off for employees who attend jury service??
Yes, the employer must allow the employee to take paid time off to attend jury service where required. This also includes when an employee is summonsed for jury service but may not actually be called on to serve on the jury panel.

Is this protected leave??
Yes, an employee’s employment is protected for the duration of their jury service. At the end of jury service leave, they are entitled to return to their original job under terms and conditions no less favourable than those which would have applied if they had not been absent.

Can employers request that the employee does not attend jury service??
The employer is prohibited from stopping an employee from fulfilling their civic duty to attend jury service, however, an employer can ask the employee, if they agree, to make an application to be excused which outlines the reason why they are unable to attend. It is important to note that the decision to grant the application is at the discretion of the County Registrar. If the application is refused the employee must be allowed to attend jury service.

How can application to be excused be made??
Employees should state their reasons as fully as possible on the form J2 that is attached to the original summons, explaining why they should be excused and send it to the County Registrar. The application should include any certificates or documents in support of their application.

An employee has been called to give evidence for a civil / criminal case, are they entitled to paid time off??
No, jury service should not be confused with a situation where an employee has been requested or subpoenaed to provide evidence in civil law or criminal proceedings. In such a case, there is no entitlement to paid time off work. However, the organisation may, at its discretion, decide to allow the employee to avail of either annual leave or unpaid leave.

Is the employee entitled to annual leave and public holiday entitlements??
Yes, employees continue to accrue annual leave and are entitled to their full public holidays.

How much notice should an employee give when called to jury service??
An employee should provide written notification to you that they need to avail of jury service leave. This should be received as soon as possible after they have received the jury service summons. You can request that the written notice includes evidence of the times and dates that they are required to attend court. 

In the instance that an employee is required to attend part of a working day for jury service leave, can an employer request they return to work??
Yes, an employee must return to work immediately after they have been released from court. For each day they attend jury service, they should provide you with a certificate of attendance from the County Registrar evidencing the dates and times of their jury service.?

Posted in Employment Law

27
Jul 23

Posted by
Charlotte McArdle

Bonuses 101: A Guide to Managing Bonuses

Many employers routinely consider the award of bonuses to their staff at this time of year and inevitably this leads to disputes with some staff members about the failure to award a bonus to them at all or at a particular level. In this blog, we set out some factors of which employers should be mindful when making bonus-related decisions.

Entitlement to a bonus

The contractual status of a bonus is a significant factor to consider. Generally, offer letters and employment contracts outline eligibility to earn a bonus without explicitly guaranteeing it. They often state that the bonus scheme's operation and the amount awarded are solely at the employer's discretion. Bonuses are typically contingent upon the employer's business performance, the employee's work performance, or a combination of both during the previous year.

Even if bonuses are described as discretionary, there might still be a contractual entitlement to them implied in the employment contract. This could happen when an employee consistently receives a bonus at a particular level over an extended period due to custom and practice. If a contractual entitlement exists and the employer fails to pay the bonus, it could lead to a breach of contract claim or a complaint about an unlawful deduction from wages. It may also contribute to a constructive dismissal claim. In some cases, bonuses might be factored into loss of earnings awards in unfair or constructive dismissal cases.

The entitlement to a bonus may be contingent upon the employee remaining employed (and not serving notice) at the time of the award and not facing any performance or disciplinary issues. However, in instances where no express condition exists, courts have rejected implying such terms.

Employers should be aware that even if they have the discretion to terminate a bonus scheme, they cannot withhold bonuses that employees have already earned and accrued under the scheme as it was at the time. This means that once employees meet the conditions for earning the bonus, they have a right to receive it.

Exercising discretion to award a bonus

Bonuses are typically evaluated based on objective individual and/or business performance criteria. Employers must clearly define the criteria and decision-makers responsible for awarding bonuses at specific levels. Bonuses may come in various forms, including stock options, subject to the scheme's terms. However, caution should be exercised to avoid conditions that could be seen as a restraint of trade or penalty clause, as these might be deemed void due to public policy considerations.

In cases where bonuses are discretionary, employers cannot exercise their discretion arbitrarily or unfairly. The decision-making process must be carried out in good faith, consistently, and in line with the implied duty of trust and confidence. While equality laws do not require identical treatment of employees, employers should be especially cautious not to discriminate based on any protected characteristics. Ensuring fairness and transparency in bonus allocation fosters a positive work environment and reinforces the employer-employee relationship. Employers should be mindful to avoid any discrimination amongst employees based on any protected ground(s):

  • Gender
  • Marital status
  • Family status
  • Age
  • Disability
  • Sexual orientation
  • Race
  • Religion
  • Member of the Traveller community

Employees on leave

Care should be taken regarding employees absent on sick leave during the performance year.

The general principle in relation to maternity leave is that where a bonus comprises payment for work done, an employer is entitled to make a pro rata reduction in the bonus award for an employee’s absence on leave. However in many cases, there is scope for dispute about whether bonuses are in respect of work done. This area can be fraught with risk, and close consideration should be paid to whether a bonus is expressed to relate to company performance only or in combination with individual employee performance.

 

12
Jul 23

Posted by
Charlotte McArdle

Remote Working Updates by the HSA

The responsibility for safety and health at work rests with the employer regardless of whether an employee works remotely or at the employer’s premises. Employers must provide a safe work environment and, in doing so, assess the risks and ensure appropriate controls are in place to safeguard employees at work.

The Health & Safety Authority (HSA) have now updated their Remote Work Guidance and Checklist. This guidance provides useful information and advice on managing remote working away from the employer’s normal work premises. If you have employees working from remotely (from home or from a work hub), this guidance is applicable to your business.

In addition, they have issued separate guidance on Managing Psychosocial Hazards in the Workplace. This Information Sheet gives practical advice on what psychosocial hazards are, and the roles and responsibilities of employers and employees in relation to managing psychosocial hazards.

Click the links below to find out more:
Remote Working Guidance and Checklist
Psychosocial Hazards Information Sheet

Posted in Health & Safety, Hybrid Working

5
Jul 23

Posted by
Charlotte McArdle

Common Parental Leave Questions

There are several different types of leave available to parents in Ireland. What employees are entitled to depends on their circumstances.

  • Maternity leave: If employees become pregnant while in employment, they may be entitled to maternity leave. While employers don’t have to pay employees during this time, they might be eligible for maternity benefit for the first 26 weeks. They are also entitled to an extra 16 weeks of unpaid maternity leave
  • Paternity leave: New parents are entitled to 2 weeks paternity leave from employment or self-employment following the birth or adoption of a child. Employers do not have to pay for this leave but employees may be eligible for paternity benefit
  • Adoptive leave: One parent of the adopting couple or a parent who is adopting alone is entitled to 24 weeks of adoptive leave, beginning on the day the child is placed with them. Employers do not have to pay an employee for adoptive leave but they may be entitled to adoptive benefit. They are also entitled to an extra 16 weeks of unpaid adoptive leave
  • Parent’s leave: Parents of children under two and parents of adopted children in the first two years of adoption are entitled to seven weeks paid parent’s leave
  • Parental leave: Each parent is entitled to 26 weeks of unpaid parental leave before a child is 12 years of age

Rights as a parent
Before employees apply for time off work, it is important to understand what their entitlements are.
Under Irish law, parents are allowed to take unpaid leave from their job to look after young children. This is called parental leave. Employees can take up to 26 weeks off work for each eligible child. Parental leave is to be used only to take care of the child concerned. If it is taken and used for another purpose, the employer is entitled to cancel the leave.

What is parental leave?
Under Irish law, parents are allowed to take unpaid leave from their job to look after young children. This is called parental leave. Employees can take up to 26 weeks off work for each eligible child. This includes parents, adoptive parents and ‘in loco parentis’ (that means they take the role that would usually be fulfilled by a parent).
Parental leave is available for each child up until their 12th birthday. This may be extended in the following circumstances:

  • If the child was adopted between the ages of 10 and 12, employees can take the leave that they were entitled to up to two years after the date of the adoption order
  • If the employee's child has a disability or long-term illness, then they may take leave up until they are 16 years of age
  • If illness or another incapacity stopped an employee from taking the leave before the child reached the age limit, an extension may be allowed

Do employees get paid while on parental leave?
Employees are not entitled to pay or pension contributions from their employer while on parental leave. They are also not entitled to social welfare payments. Taking this leave does not affect any of the other employment rights.
Employees can get credited PRSI contributions while taking leave. The employer must write to the Records Update Section of Department of Social Protection (DSP), detailing the weeks the employees have not worked, so that they can get credited PRSI contributions for this time.

Is there a limit to how much leave employees can take?
If employees have more than one child, they are only entitled to take 18 weeks total in a 12-month period. However, this can be extended if the employer agrees. If an employee has twins or triplets, they are allowed to take more than 18 weeks of parental leave in a year.
If employees work part-time, their entitlement to leave is reduced on a pro-rata basis.
As the legislation only sets out the minimum entitlement is in terms of how many weeks are available to take, employers can have a greater amount than this in the contract.

Do employees have to take all of their leave at once?
No, but employees are allowed to do that if they want to. They can also take it in two separate blocks but must take at least six weeks in each block. There must be a gap of at least 10 weeks between the two periods of leave per child.
However, if the employer agrees, the leave can be separated into periods of days or even hours.

Are partners entitled to the same amount of leave?
Both parents are entitled to their own 26 weeks of parental leave. If employees both work for the same employer and the employer agrees, one employee can transfer 14 weeks of their leave entitlement to each other.

What happens if an employee gets sick while on parental leave?
Parents who fall ill while on parental leave are allowed to suspend the leave for the duration of their illness, but only if that illness leaves them unable to care for the child.
They will have to provide their employer with written notice and relevant evidence of the illness to their employer as soon as is reasonably possible in order for the leave to be suspended.

What happens to employees' annual leave?
During parental leave, employees are regarded as still working for employment purposes and so they can still build up annual leave entitlement. If their annual holidays fall during the period of leave, then they can take them at a later time.
If a public holiday falls while they are off and it takes place on a day when they would normally be working, it is added to their period of leave.

Can employees return to their old job after time off?
Employees are entitled to return to their job unless it is not reasonably practicable for the employer to allow them to return to do so. In this instance, employees must be offered a suitable alternative on terms no less favourable compared with the previous job, including any improvement in pay or other conditions which occurred while on parental leave.
When they return to work, they are entitled to ask for a change in the work pattern or working hours for a set period. Employers must consider their request and respond within four weeks but is not obliged to grant it.
Employees who take parental leave are protected by law from unfair dismissal.

What happens if employees switch jobs?
If employees change their job and have used part of the parental leave allowance, they can use the remainder after one year of employment with the new employer, provided the child/children are still under the qualifying age.

How should employees apply for parental leave?
In general, employees must have been working for the employer for at least a year to get the full amount of parental leave. To apply, they need to:
• Give notice in writing
• Inform the employer at least six weeks before the leave is due to start
• Include the start date, the way the leave will be taken and the duration of the leave
• Sign a confirmation document between the employer/employee confirming the details of leave at least four weeks before the leave is due to start

Can an employer say no?
Employers can only deny the request if employees do not meet the criteria to be eligible for leave.
If an employee has been working for the employer for anywhere between three months and a year, they may still qualify for pro-rata parental leave if the child is very near the age threshold. This allows employees to take one week of leave for every month of employment completed.

Can an employer postpone my parental leave?
An employer may also postpone the leave for up to six months, but this must be done before the confirmation document is signed. After six months, the leave cannot be postponed without further written agreement; grounds for such a postponement include lack of cover or the fact that other employees are already on parental leave.
Normally only one postponement is allowed, but it may be postponed twice if the reason is seasonal variations in the volume of work.

Posted in Employment Law, Family Leave

3
Jul 23

Posted by
Charlotte McArdle

New Statutory Leave Updates

The Work Life Balance and Miscellaneous Provisions Act 2023 was signed into law on the 4th April 2023. From the 3rd of July, two of the changes are coming into effect. These are:

• a breastfeeding at work extension
• unpaid leave for medical care purposes

The breastfeeding at work entitlement has been extended from 6 months to 2 years after the birth of a child. Employees are entitled to take one paid hour off work each day. It can be taken in the examples below:
• One hour break
• Two 30 min breaks
• Three 20 min breaks

Employees have an entitlement to 5 days of unpaid leave per year for medical care purposes. Apart from doing so for the employee’s own medical care, an employee will be allowed take this leave for:
• their children,
• spouse, civil partner or cohabitant,
• a parent,
• a grandparent,
• a sibling,
• any person living in the household

Posted in Employment Law

16
Jun 23

Posted by
Charlotte McArdle

Following GDPR Guidelines

General Data Protection Regulation (GDPR) is a hot topic right now. GDPR is the toughest privacy and security law in the world. Even though it was drafted and passed by the European Union (EU), it imposes obligations onto organisations anywhere, so long as they target or collect data related to people in the EU. Under GDPR people have a fundamental right of access to their personal data from data controllers.

Types of data processed
In business there are 3 main types of data that is processed regularly. These are:

• Customer data
• Employee data
• CCTV

When dealing with this data the three key principles to remember are:

• Lawfulness
• Fairness
• Transparency

How to treat the data you process

• Purpose limitation
Personal data should only be collected for specific, explicit and legitimate purposes and not further processed in manner that is incompatible with those purposes.

• Data minimisation
Processing of personal data must be adequate, relevant and limited to what is necessary in the relation to the purpose for which they are processed.

• Storage limitation
Personal data should only be kept in a form which permits identification of data subjects for as long as is necessary for the purpose for which the personal data are processed.

• Integrity and confidentiality
Personal data should be processed in a manner that ensures appropriate security and confidentiality of the data, including protection against unauthorised or unlawful access to or use of personal data and the equipment used for the processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures.

The four main breaches of GDPR are:
• Unauthorised disclosures
• Unauthorised access
• Hacking
• Integrity

GDPR Guidelines
1. Know what data you have, where you have it and why you have it
2. Be transparent
3. Identify any risks
4. Know your processors
5. Manage any risks

Bright Contracts contains a 'Data Protection' section of the Company Handbook which can be viewed under the 'Introduction' tab. Download a trial of our software to see a sample of this content.

Posted in GDPR

15
Jun 23

Posted by
Charlotte McArdle

Whistleblowing Updates

Whistleblowing legislation has been in place in Ireland since 2014 as a result of the Protected Disclosures Act 2014 (the "PD Act"), a major development at the time, which introduced significant legal protection for employee whistleblowers and consequently new and serious obligations for employers. As a result of the EU Whistleblowing Directive, the 2014 Act has been significantly updated and enhanced through amending legislation which became effective on 1 January 2023.


What impact did the updated whistleblowing legislation have in Ireland?
While many of the elements required by the Directive were already covered under Irish law, the Irish Government introduced the Protected Disclosures (Amendment) Act 2022, which amends the existing 2014 PD Act.


The updated legislation includes a number of key enhancements to existing whistleblowing protections and measures, such as:


• Widening the scope of individuals who are afforded protection beyond employees to include volunteers, interns, job applicants, suppliers, shareholders and non-executive directors
• Expanding the ambit of "relevant wrongdoings" for the purposes of whistleblowing by encompassing breaches of EU law in various prescribed areas including public procurement, financial services, product safety, transport safety, food safety, animal welfare, public health, consumer protection, privacy and protection of personal data. – it excludes interpersonal conflicts which concerns the worker exclusively
• Considerably extending the definition of "penalisation" to include acts such as failing to convert fixed-term contracts, negative performance assessments and psychiatric or medical referrals
• Extending the existing injunction style interim relief potentially available in dismissal cases to make it potentially available in other penalisation situations
• Reversing the traditional burden of proof. Where a worker alleges penalisation, the new legislation shifts the burden to the employer to prove that the employer' actions were based on justified grounds and not because the worker made a protected disclosure
• Requiring that certain private sector employers must have whistleblowing procedures and internal channels on the following basis:
o Private entities with more than 250 employees – from 1 January 2023
o Private entities with between 50 - 249 employees – from 17 December 2023.
o All public sector organisations are already required to have a formal whistleblowing policy in place under the existing legislation
• Imposing strict timeframes on employers for acknowledging, following up and providing feedback to whistleblowers
• Establishing a Protected Disclosures Commissioner

Are employers required to process anonymous disclosures?
Employers are not obliged to accept or follow-up on anonymous reports. However, an anonymous whistleblower is still entitled to protections if their identity subsequently emerges.

What other things should employers in Ireland be thinking about?
The new legislation signals a significant change in approach to whistleblowing in Ireland.
Many employers should have reviewed existing policies or prepared new procedures. Training and awareness, especially for management, is also key.
By ensuring that effective internal whistleblowing channels and procedures are in place, organisations will have an opportunity to become aware of concerns at the earliest stages, helping to avoid or limit financial and reputational risks.

 

Posted in Employment Update

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