Lay-Off and Short Time Working
A shortage or work, or a temporary lull in business is not an uncommon feature for many employers. However how to manage such events can be tricky.
Staffing is one of the first concerns that employers will likely need to address, particularly when cost savings need to be made.
Lay-off and short-term working arrangements are therefore popular with employers looking for a solution to a temporary issue, rather than the more permanent option of redundancy.
Lay off: A lay-off situation arises where you are temporarily unable to provide work for your employees. Lay-off could result in work halting and no pay in relevant roles, alternatively it may be a pattern such as one week on, one week off, or working three out of four weeks.
Short-time: A short-time situation arises where, due to a reduction in the amount of work available, you reduce employees pay or hours to less than half their normal weekly amount.
Redundancy
An employee who has been laid-off or placed on short-time for four or more consecutive weeks, or for an aggregate total of 6 weeks in a 13 week period, can give written notice (through the form RP) to their employer indicating their intention to claim redundancy.
Upon receipt of such notice the employer can:
- Accept and pay the redundancy lump sum thereby accepting that there is a termination of employment
- Counter notice within 7 days, confirming that within 4 weeks the employee will be employed for a period of 13 consecutive weeks.
Notifying Employees of Use Lay-off or Short-time Working
As an employer you do not have an automatic right to lay-off employees or place them on short-time working. To do so without having an express term in the contract of employment, or without an established custom and practice, may well be seen as a breach of contract, particularly if agreement is not reached with effected employees. You may also be at risk of constructive dismissal claims or payment of wages claims.
Employers who feel their business is subject to fluctuating workloads are well advised to include a lay-off and short-term clause as standard in their contracts of employment.
Additionally, good communication is highly recommended. Informing staff of the situation will not be pleasant, but they should receive clear and honest communication from management. Failure to do so will more than likely result in an extremely disengaged, unmotivated workforce, particularly when they return to normal working.
There is no minimum notice required for lay-off or short-time, however employees should be given as much notice as possible, to allow them organise their own financial situation.
Once the final decision has been made, employees should be formally notified using the Form RP9.
Bright Contracts - Employment Contracts and Handbooks
Annual Progress Report from WRC: 2015 - 2016
The Workplace Relations Commission (WRC) has recently published a progress report on its first year in operation (October 2015 - Septetmber 2016). The report outlines the statistics and trends of labour law over the 12 month period and gives some insight into the types of cases being dealt with and how the WRC operates in practice.
Customer Support
The WRC Information and Customer Service department received more than 62,000 calls, ranging from queries related to work permits, working hours, payment of wages, etc. 69% of the calls were made by employees working in a range of different industries.
Top most popular queries
- Employment permits
- Working Hours
- Complaint Enquiries
- Terms of Employment
- Payment of Wages
Caller Type Breakdown
- Employees = 69%
- Employers = 21%
- Citizens Information Centres = 4%
- Employee Representatives = 3%
- Employer Representatives = 2%
- Other = 1%
Conciliation Service
The WRC Conciliation Service received a total of 1,124 referrals in the 12 months, of which 163 disputes were then referred to the Labour Court. The Conciliation Service helps employers and their employees resolve disputes when they have failed to reach agreement during their own negotiations by allowing parties avail of a neutral and impartial third party to assist them in resolving their differences. Prior to the restructuring of the WRC all of these disputes would have ended up being referred to the Labour Court - thus demonstrating how effective the new WRC service is in reducing the numbers clogging up the courts unnecessarily.
Inspection and Enforcement Services
The report also showed that the WRC Inspection and Enforcement Services closed 5,221 inspections and out of those 2,050 employers were found to be in breach of employment legislation. 13 fixed-penalty notices were issued in those 12 months relating solely to failure by the employer to provide a written statement of wages and over €1.5 million of unpaid wages were recovered.
Employment Hearings
Finally, the report highlights a significant reduction in waiting times for hearings and determinations, and a substantial reduction in the backlog of cases, with the employment rights cases being reduced by nearly 50%, all very positive signs pointing towards the success of the WRC since its introduction.
Bright Contracts - Employment Contracts and Handbooks
4 Tips to Banish your Employee's January Blues
The third Monday in January has officially been reported as the most depressing day of the year, Blue Monday. Research also shows that the month of January has the highest rate of sick leave.
After the hype and excitement of December, January brings lighter bank balances, tighter waistbands, and overall melancholy that the fun and festivities are over for another her. So it’s not surprising that your employees will catch the “January Blues”, feeling tired, unmotivated, lacking energy and focus. However, the New Year is also a time for fresh starts, a time to plan and to set targets for the months ahead.
Here are our top tips on how to stamp out the January Blues in your workplace:
Generate enthusiasm
To help generate enthusiasm, you need something for staff to look forward to that will be energetic and fun. Why not introduce a team building event or social event? Something that will refocus the team, it’s upbeat and entertaining. Even a team lunch on a Friday afternoon will lighten the mood and enthuse staff to apply themselves.
Set targets
Goal setting in January is a good idea. It allows you to set out plans for the year ahead and let your employees know what the key objectives for the business are – and how they will play a crucial role in achieving that. Along with setting Company goals, set individual goals, and team goals.
Recognition
A key factor in driving motivation amongst employees, is the feeling of being recognised for their work and achievements. Acknowledging employees for a job they have done well, will make them feel valued and encourages them to continue doing what they do effectively.
The impact of simply saying thank you, can go a long way. These two words, can have an overwhelming effect on employee engagement and productivity.
Workplace wellbeing
One of the most popular New Year resolutions people pledge, it to lose weight. The chances are several of your team will be looking to achieve this, as they are feeling sluggish from all the Christmas over-indulgence.
As we know, it’s important as an employer to invest in workplace wellbeing and fruit is a fantastic superfood that can help concentration and productivity levels. So why not show your support to staff and their resolution, by providing complimentary fruit platters for employees to enjoy.
The New Year is an opportunity to start fresh and achieve success. You need a fully focused workforce to accomplish this. Follow these top tips to help refocus employees and make 2017 a prosperous year.
BrightPay-Payroll and Auto Enrolment Software
Bright Contracts - Employment Contracts and Handbooks
Minimum Wage Increase from 1 January 2017
The minimum wage will increase to €9.25 per hour from 1 January 2017.
Employers should ensure their payrolls are updated and affected employees are informed of the change. Employers are also advised to review their Sunday rate as this may need to be adjusted to ensure the Sunday premium is complaint with legislation.
Minimum wage rates from 1 January 2017
- Experienced Adult Worker - €9.25
- Aged Under 18 - €6.48
- Over 18 and first year from date of first employment - €7.40
- Over 18 and second year from date of first employment - €8.33
Employees over 18, in structured training during working hours
- 1st one third period - €6.94
- 2nd one third period - €7.40
- 3rd one third period - €8.33
Bright Contracts - Employment Contracts and Handbooks
2016 Employment Round Up
2016 has been another busy year for employment law. We’ve summed up some of the key changes:
- Retirement Ages: January 2016 saw the introduction of the The Equality (Miscellaneous Provisions) Act 2015 which stipulates that employers must objectively justify a mandatory company retirement age. The advice to employers in this regard is to review employment contracts and staff policies, where a mandatory retirement age exists employers should include a robust policy objectively justifying the retirement age. The “Optional Sections” tab within the Handbook of Bright Contracts contains a draft policy which may assist employers set objective justification. Read more
- Paternity Leave: 1 September 2016 saw the introduction of paid paternity leave in Ireland. Fathers / partners are now entitled to two weeks paid paternity leave within the first 26 weeks following the birth of a child / placement of a child for adoption. Read More
- Minimum Wage: As announced in Budget 2017, minimum wage will increase again in January 2017, the new rate being €9.25.
- CCTV in the Workplace: the Data Protection Commission this year released updated guidelines on CCTV use. The guidelines include a requirement for:
- a written CCTV policy to be in place
- a risk assessment to be conducted to justify the use of CCTV
- a privacy impact assessment
- evidence of previous incidents that have led to concerns that may justify the use of CCTV
- clear signage indicating that there is CCTV recording in operation. Read More
Bright Contracts - Employment Contracts and Handbooks
€20,000 awarded in constructive dismissal case
A recent case before the Employment Appeals Tribunal was one where an employee handed in his resignation due to the uncomfortable and unprofessional environment he felt he was working in because of another member of staff, who happened to be one of the directors’ wives.
After a number of incidents, the employee reported his grievances to the other director who responded with “..its “”’s wife, there’s nothing I can do..” After more incidents involving the director’s wife, where she became verbally abusive towards the employee, he made a formal complaint using the company’s own policies regarding harassment. An external mediator was appointed who in turn said the employee should try his best to get on with the other member of staff and given some time should resolve itself. The employee did this and for a short period things became manageable.
However the husband of the other employee - the director, started to cause problems for the employee by ignoring his emails and becoming aggressive towards him. At this stage the employee felt he had no option but to hand in is notice as it was no longer a comfortable working environment.
The Tribunal adduced that the companies refusal to take the employee’s concerns seriously or to investigate the matters properly and as per their own policies left the employee in a situation where he felt he could no longer work productively, therefore finding his termination of employment, though at his own hand to be unfair. The employee was award €20,000 compensation under the Unfair Dismissals Acts 1977 to 2007.
Bright Contracts - Employment Contracts and Handbooks
Pay Rise for Contract Cleaners
Hourly pay rates for contract cleaners will increase from mid-December to €10.05. Scheduled increases have also been agreed for 2017 and 2018.
- 1 December 2017 - €10.40
- 1 December 2018 - €10.80
The increase comes following changes to the Contract Cleaning Employment Regulation Order (ERO) and were signed by Pat Breen, Minister of State at the Department of Jobs, Enterprise and Innovation on 27 October 2016.
Other significant changes to the ERO include:
Uniforms
All charges for uniforms shall cease, with the exception of new employees who will be charged a once-off fee of €15. If an employee leaves within the first six months, a deduction of €10 can be made by the employer from any outstanding wages. Each employer is to have a procedure on uniforms which will cover the issue of replacement items and return of uniforms when leaving employment.
Rosters
Other than in exceptional circumstances completed rosters will be issued and made available to employees a minimum of 3 days in advance of commencement.
Payment of Wages
Each company shall have an operational procedure in place for dealing with wage shortages and overpayments which should be communicated to employees and unions if applicable.
Bright Contracts - Employment Contracts and Handbooks
Are employees entitled to an extra hour's pay if they are working when the clocks go back?
This Sunday, 30th October, the clocks will go back an hour at 2am, changing from British Summer Time to Greenwich Mean Time. This can cause confusion if staff are required to work overnight.
Generally, it is for employers to decide how they will handle the situation, however in making their decision they will need to take into consideration:
- terms set out in the contract of employment
- the national minimum wage
- working time regulations
The Contract of Employment
Employers should check the wording of the contracts of employees who are working when the clocks go back. For example, a shift could be described as lasting “eight hours’ or it could be “from 10am to 6am.
Employers don’t necessarily have to pay employees for working an hour longer on a particular shift. A salaried employee is more likely than an hourly paid employee to be required to work extra hours without additional pay. However, as long as the employer is paying at least the national minimum wage, entitlement to payment will depend on the employer’s rules on overtime.
Some employers may choose to pay their employees for the extra hour, or to allow employees leave an hour early.
The National Minimum Wage
If an employee who is paid at or near the national minimum wage rate works an extra hour when the clocks go back, the employer must be careful that the extra hour does not take the employee’s pay below the relevant rate.
Check the Rules on Working Time
If additional hours are worked, employers should be sure that it does not lead to a breach of the rules on maximum night working hours.
Bright Contracts - Employment Contracts and Handbooks
Minimum Wage Increase
Budget 2017 has made for interesting reading right across the board. A key point for small employers will be the increase to minimum wage.
From 1st January 2017, the national minimum wage will increase by 10 cent, from €9.15 per hour to €9.25 per hour. This announcement is in-line with the recommendation given by the Low Pay Commission earlier this year.
As of 1st January 2017, the following will be the applicable hourly minimum rates:
- Experienced adult worker: €9.25
- Over 19 with less than 2 years since beginning first job: €8.33
- Over 18 and less than 1 year since beginning first job: €7.40
- Aged under 18: €6.48
Some of the other budget announcements likely to affect small businesses include:
- Changes to USC rates
- Increase to the Earned Income Tax Credit for small business owners
- Entrepreneur Relief: a reduction to 10% in the capital gains tax
- 9% VAT rate for tourism to continue to apply
Thesaurus Software is holding a Free Budget Update Webinar on 18th October. If you are looking for a concise breakdown of how Budget 2017 will affect your business register here.
Bright Contracts - Employment Contracts and Handbooks
How your Company can benefit from staff induction
Many companies spend considerable time and money finding and recruiting the right staff to join their team. Disappointingly however, very few companies take the time to provide proper induction for their new staff.
Induction is about welcoming and introducing a new employee to your company.
A good induction process will boost staff retention rates and productivity levels enabling new recruits to contribute to the bottom line much quicker.
Statistics show that individuals decide whether or not they feel at home in an organisation within the first three weeks in a company. Furthermore, new hires who go through a well planned induction program are 58% more likely to remain with a company for up to three years.
What should be included in induction?
The induction programme should be tailored to suit your organization and the role being hired for.
However, as a guide, the following should be considered:
- Administration: contract of employment, company policies & procedures, health and safety.
- Company overview: your products and services, your history.
- Full office tour and introduction to colleagues and management.
- Job training: specific role training as well as general office / IT training - this may be ongoing over a number of weeks.
- Feedback: regular catch-ups during the probation period to assess how the employee is doing. Positive feedback will help build their confidence, constructive feedback will help them improve.
Bright Contracts - Employment Contracts and Handbooks
