EMPLOYMENT OBLIGATIONS OF SMALL BUSINESS Speaker Jim Curran

EMPLOYMENT OBLIGATIONS OF SMALL BUSINESS Speaker: Jim Curran Head of Research & Information Services, ISME The Independent Business Organisation

EMPLOYMENT LAW COMPLIANCE BILL 2008 • Establishment of National Employment Rights • • • Authority (NERA) Strengthening labour inspection powers REA Electrical Contract Industry Joint investigations with other agencies Increased penalties Notices/Publication Records The Independent Business Organisation

NATIONAL EMPLOYMENT RIGHTS AUTHORITY (NERA) • Information • Inspection • Enforcement • Prosecution The Independent Business Organisation

NERA INSPECTIONS WHAT TRIGGERS AN INSPECTION? • Announced • Unannounced • Complaints • Sectoral The Independent Business Organisation

POWERS OF INSPECTION • To enter any premises at a reasonable time • To demand sight of records • To inspect records • To take copies of records • To interview and require information from any • • relevant person Exchange data with other agencies Initiate legal proceedings if necessary The Independent Business Organisation

RECORDS TO BE AVAILABLE FOR INSPECTION. • Employer Registration • • Number Employee PPS Number Terms of Employment Pay details/payslips National Minimum Wage • Job classification • • • /commencement/termin ation Hours of Work Holidays/public holidays Under 18 s Work Permits Any document to demonstrate compliance The Independent Business Organisation

TERMS OF EMPLOYMENT Terms of Employment (Information) Act 1994 -2001 • New & Existing Employees • Application of Act – – Contract of Employment Apprenticeship Employment Agency State The Independent Business Organisation

WHAT MUST BE INCLUDED • • Full names of the employer and employee Place of Work and address of the employer Title of the job or nature of the work Date of commencement of employment If temporary/fixed contract-duration & expiry date. The rate and method of calculation of the employees remuneration Pay reference/frequency period The Independent Business Organisation

WHAT MUST BE INCLUDED (Contd) • Any terms relating to hours of work (including • • • overtime & breaks) Any terms relating to leave (including holidays, sick leave etc. ) Pension details if applicable Notice of termination Dismissal Procedure Any collective bargaining agreements. E. G. JLC. Records The Independent Business Organisation

ADDITIONAL TERMS • Probationary period • Lay-offs/short-time • Retirement Age • Bullying/Harassment Policy • Discipline/Grievance Procedure The Independent Business Organisation

SAMPLE CONTRACT OF EMPLOYMENT Date Name Address __________ Dear ______ I am pleased to offer you an appointment to our staff. You are being offered a position in our ______ department. This offer of employment is subject to the following terms: Commencement Date Your appointment will commence on the ________ and will not continue beyond your 65 th Birthday. Probationary Period You will be required to satisfactorily complete a six-month probationary period of employment. During the probationary period, employment may be terminated at the Company’s absolute discretion. In such case you will be entitled to 1 week’s notice, after the completion of 13 weeks service. Location The company premises are at ______, where you shall be presently employed, however you may be relocated in the future and you will be given notice prior to this occurring. Position/Title Your position will be _________ Your manager will be_________ Duties Your duties will include _______ and any other duties you may be assigned. Salary Your salary will be €______ per annum Hours of Work The company operates from _____ to _____. Work hours are from _______to ____. You will be paid on the last Friday of the month by direct debit. Break entitlements are _____ in the morning and ______ for lunch. Where, due to circumstances outside the control of the Company, there is insufficient work, the Company reserves the right to place staff on Lay Off or Short Time working. In such circumstances the Company will give as much notice as is practicable. Selection for Lay Off or Short Time working will be dependent on operational needs.

Holiday Entitlements Your holiday entitlements will be_____ days per annum together with all statutory public holidays On termination of employment, holiday entitlement will be calculated to the nearest full month worked. If you have already taken holidays in excess of your entitlement this will be deducted from the final salary. Illness If you are unable to come to work due to illness you must inform your _____, or the ______ department within 1 hour of your starting time on the first day, giving some indication of the reason for absence and the likely date of return. If your absence is going to exceed two days you should forward a doctor’s certificate to the company on the third day. Certificates should be furnished on a weekly basis thereafter. Sick Pay The Company does not operate a sick pay scheme Termination Notice of termination of employment by either you or the company will be _______( mth/wk) or such further period as may be required by the Minimum Notice and Terms of Employment Acts, 1973 & 2001. Pensions Employees who have at least 6 months service in the Company can set up or contribute to a PRSA through payroll deductions. The Company has appointed ______ as PRSA provider. Dismissal Procedure Where the Company is considering the termination of employment the employee concerned will be advised of the reasons giving cause to consider this action and afforded the opportunity to respond to such reasons, before any decision is made. The employee will be advised prior to the meeting of the purpose of the meeting and, in the case of disciplinary action, be allowed to have a work colleague/ representation with them if they so wish. Law Irish Law shall govern this agreement and disputes arising under or about it should be subject to the exclusive jurisdiction of the Irish Courts. Terms of Employment (Information) Acts 1994 & 2001 The provisions of this letter and appendices shall constitute notice to you of your terms and conditions of employment as are required to be given to you pursuant to the terms of Employment (Information) Acts 1994 & 2001. Please acknowledge acceptance of this offer on the terms stated by signing and returning the enclosed copy of this letter. This offer of employment will remain open until ______pm on ______date. Yours sincerely, __________________ Manager (on behalf of the Company) Employee

PAYMENT OF WAGES • Payment of Wages Acts 1991 • Wages- What’s Included? – – Basic pay-overtime Fees/bonuses/commissions Holiday/sick/maternity (if any) pay Other payments connected to employment • Wages- What’s not included? – – – expenses incurred pensions compensation for loss of office redundancy payments Benefit in Kind The Independent Business Organisation

PAYMENT OF WAGES (Contd) • Method of Payment • - cash/cheque etc. • Pay slips – gross wages – Deductions • Deductions • Records The Independent Business Organisation

ORGANISATION OF WORKING TIME ACT 1997 • Hours of work • Rest Periods • Holidays The Independent Business Organisation

HOURS OF WORK • Weekly incl max. working week – 48 hours – Can be averaged • Daily • - 13 Hours Night Work – 8 hours on average over 2 months – Special category workers • Part-time/on call workers • Records The Independent Business Organisation

REST PERIODS • General Rest Periods – Daily-11 consecutive hours – Weekly- 24 hours preceded by 11 hours • Rest Breaks – 15 mins for 4. 5 hours worked – 30 mins for 6 hours worked • Compensatory rest • Records The Independent Business Organisation

HOLIDAYS • Annual Leave Entitlement: • • -4 Working Weeks (1365 hours) -1/3 Working Week (117 hours) -8% of total hours worked (max 4 weeks) Timing of Annual Leave Payment for Annual Leave year Public Holidays – – – Nine Statutory Public Holidays Different to Bank Holidays Entitlement/ Full-time v Part-time / Casual • Records The Independent Business Organisation

BULLYING & HARASSMENT POLICY The Employment Equality Acts 1998 & 2004 Deals with discrimination - includes, harassment & bullying Unfavourable treatment on the following grounds - Gender - Marital Status - Family Status - Sexual Orientation - Age - Disability - Race - Religion - Membership of the traveller community The Independent Business Organisation

Harassment “any form of unwanted conduct related to any of the discriminatory grounds, being conduct 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” Examples - words/gestures - production, display or circulation of material Sexual Harassment “ unwanted conduct of a sexual nature, or conduct based on sex, affecting the dignity of women and men at work” Examples - acts of physical intimacy/requests for sexual favours - words or gestures -production, display or circulation of written words or gestures The Independent Business Organisation

Bullying & Harassment (Contd) Bullying Definition: Workplace bullying is repeated inappropriate behaviour, direct or indirect, whether verbal, physical or otherwise conducted by one or more persons against another or others at a place of work and/or in the course of employment, which could reasonably be regarded as undermining the individual’s right to dignity at work. An isolated incident of the behaviour described in this definition may be an affront to dignity at work but, as a once off incident, is not considered bullying. • Bullying is different to harassment • Clarity on what is NOT bullying at work The Independent Business Organisation

Bullying Examples • • • Exclusion with negative consequences Verbal abuse/insults Physical abuse Being treated less favourably than colleagues Intrusion- pestering, spying or stalking Intimidation/Aggression Undermining behaviour Excessive monitoring at work Humiliation Withholding work-related information Repeatedly manipulating a person’s job content and targets Blame for things beyond person’s control

EFFECTS OF HARRASSMENT/BULLYING Impact on Individual • Psychological - depression, mood swings etc. • Physiological - headaches, fatigue, sleeplessness etc. • Behavioural - withdrawn personality - Forgetfulness etc.

Legal Considerations • Employment Equality • Constructive Dismissal • Common Law – Vicarious Liability

SETTING UP A COMPANY POLICY Policy statement – in writing & circulated to all staff Should include: Definition Examples Outline effects Defined grievance Complaints procedure & investigation process Designated contact The Independent Business Organisation

DISCIPLINARY & GRIEVANCE PROCEDURES Unfair Dismissal Acts 1977 -2007 • Disciplinary Procedure incorporated into all contracts In writing. Clearly understood Procedural fairness • • Adequate records The Independent Business Organisation

Disciplinary & Grievance Procedure • Unfair Dismissals Acts • - > 1 Year Service Except - Employee Pregnant - Maternity Protection Act 1994 - Adoptive Leave - Trade Union Membership • Does not cover Employee - Fixed Term/Specific Purpose - Apprentice

Disciplinary & Grievance Procedures Justify Dismissal on Following Grounds • Capability, Competence or Qualifications • Conduct • Redundancy • Unlawful Ground • Other Substantial Grounds

CODE OF PRACTICE SUGGESTED DISCIPLINARY ACTION • An oral warning • A written warning • A final written warning • Suspension without pay • Transfer to another task or section of the • • enterprise Demotion Some other appropriate disciplinary action short of dismissal The Independent Business Organisation

Disciplinary Procedure • General Principles - Right to be advised in advance of a hearing - Right to know the full case against them - Right to respond - Right to representation - Investigation must be fair & impartial - Employee concerned & other relevant factors - Right to impartial appeal The Independent Business Organisation

GRIEVANCE PROCEDURE • Grievance initially brought to • • foreman/supervisor No resolution then raised with immediate manager Still no resolution goes to company director/MD Company & employee representatives Rights Commissioner/LRC/Labour Court/EAT The Independent Business Organisation

HANDLING GRIEVANCES • Arrange a meeting ASAP • Approach the issue from a neutral point of • • • view Ascertain all facts Review & summarise all facts Agree a solution Follow up promptly Communicate response & explain clearly Minute all meetings. The Independent Business Organisation

RECORDS TO BE AVAILABLE FOR INSPECTION. • Employer Registration • • Number Employee PPS Number Terms of Employment Pay details/payslips National Minimum Wage • Job classification • • • /commencement/termin ation Hours of Work Holidays/public holidays Under 18 s Work Permits Any document to demonstrate compliance The Independent Business Organisation

REDUNDANCY Redundancy Payment Acts 1967 -2003 • Eligibility - 2 years service • Benefits/calculations - 2 weeks plus one additional week - calculating service - social rebate • Selection for Redundancy - ‘job no longer exist’

Redundancy (contd) • Alternative position • Lay-offs/short-time - 4 weeks running - 6 weeks in 13 week period • Minimum Notive - 2 weeks or contract • Collective redundancies

QUESTIONS The Independent Business Organisation

Jim Curran ISME 17 Kildare Street Dublin 2 Tel: 01 6622755 E-mail: jim@isme. ie