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Hodson Bay Hotel, Athlone,
National Meeting Hodson Bay Hotel, Athlone, Tuesday 9th June 2009 2:30-5:00p.m. “Employment Law” Delivered by: Elaine Rossiter, HR Consultant
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Key session topics include:
This session will look at some of the practical employment issues that managers of FRC need to consider in the ever changing economic environment. Key session topics include: o Overview of Employment Law o Contracts of Employment o Termination of Contract o Fair and Unfair Dismissals o Grievance and Disciplinary Procedures
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Employment Law Overview
Sources of Irish Employment Law Contracts of employment Fixed Contract Employees Forms of Statutory Leave Hours of Work/Working Time Act New Staff and the UD Act Redundancy Guidelines Overview of minimum policies required by statute
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Sources of Irish Employment Law
Employment Contract Staff Handbook, Policies, Procedures Irish Constitution 1937 Irish & EU Legislation Irish and EU case law Collective Agreements Registered Employment Agreement Social Partnership Agreements Custom and Practice International law Sources of the rights, duties and obligations of the employer and the employee which make up the employment relationship. Regardless of what it says in a contract of employment of the terms and conditions of employment, we need to look at obligations under the law. Terms can not be less favourable that what is required by law. We’re not going to go through all of these but a few worth comment are as follows: Employment Contract Irish & EU Legislation (notable “Codes of Practice”) Social Partnership “Towards 2016” A combination of all of the above make up the rights under legislation for employees
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Employment Contracts & Staff Handbooks
Verbal Written Express Terms Implied Terms By the Constitution By legalisation By custom and practice By the courts Best practice is to have a WRITTEN CONTRACT, however no legal obligation for one. Obligations under law are: 1994 Terms of Employment and Information Act states that an employer must provided certain terms and conditions in writing The Unfair Dismissals Act requires that you provide the company procedure in writing. Verbal causes difficulties regarding proof of what was agreed. Custom & Practice (e.g. flexi arrangements) Best Practice: Also best practice would say to have a STAFF HANDBOOK and to have a document relation to H&S. Discuss contents of a staff handbook (use landmine concept poster). Show SAMPLE contents page. It is advisable to make any breach of H&S a disciplinary procedure in the contract of employment.. We’ll back to this later
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Irish Law and EU Legislation -Codes of Practice
Code of Practice on Harassment & Sexual Harassment, Equality Authority. Code of Practice on the Preventing of Workplace Bullying. Health & Safety Authority. Code of Practice Detailing Procedures for Addressing Bullying in the workplace. Code of Practice on Access to Part Time Working Codes of Practice are not actual law per se BUT employers actions will be measured against them. Best practice to ensure your policies and procedures and in line with the codes of practice. Also just to mention SOCIAL PARTNERSHIP AGREEMENTS. Originally concentrated on pay but has significantly expanded. Towards 2016 – Ten year Framework Social Partnership Agreements There is a commitment by government to deal with compliance i.e. enforcement of Employee Rights legislation. Initial steps to set up this Authority has already taken place.
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Contracts of Employment
No legal requirement to provide contract of employment Terms of Employment (Information) Act, 1994 Provide main terms and conditions of employment In writing and signed by employer Within 30 days of start Not a contract but a statement Contracts of employment are: More detailed and signed by both parties Contain legally enforceable clauses Which is better depends on circumstances
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Contracts of Employment
Normally any Court / Hearing will ask these three key questions: What does the person’s contract say? What does the law say? What is happening in reality? The critical question is the third one as this forms “custom and practice”
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Contracts of Employment
Two principle forms of contracts Contract of Employment IN Contract for Services OUT
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Contracts of Employment
Contract of Services Under this form of contract a person is engaged directly as an employee of the organisation. Contract for Services Under this contract the work is ‘Contracted Out’ to a service provider (e.g. Agency Workers, Cleaning Services)
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Contracts of Employment
Written statements of terms and conditions must be provided to include, at a minimum, the following: Full names Registered offices Place of work Job title Start date Termination date if fixed term or length of contract if temporary or specified-purpose Pay rate, calculations and pay period (e.g. weekly, monthly…) Rest periods required by law Hours of work Details of paid leave Sick pay and pension arrangements Notice period to be given by either side Details of any collective agreements
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Contracts of Employment
Types of Employment Contracts Permanent Contract – ‘‘Permanent Employee” means an employee who is not a fixed-term employee. Fixed Contract Temporary Contract – Short-term need Fixed Term Contract – Project / Task focus Specific Purpose Contract – Specific need or task.
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Contracts of Employment
Protection of Employees (Fixed Term Work) Act, 2003 Provides improved rights to staff on Fixed Term contracts Same terms and conditions Permanent after 4 years Organisations need to consider why they use contract staff Short term need within existing role Skill set not available in organisation Project that is time bound No longer headcount avoidance
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Contracts of Employment
Cannot use FT Contracts to avoid making staff permanent Same terms and conditions - unless objective reason Cannot continuously roll over on successive contracts After 3 years of successive F-T contracts Only 1 more, no more than12 months Must justify reason for not making permanent Must justify reason for non-renewal Staff can be deemed to be on contract of indefinite duration Can still provide 5 year FT contract Must be only 1 contract
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Contracts of Employment
Part-Time/Agency Contracts… Part-time workers - staff whose normal hours of work are less than the normal hours of work of ‘comparable full-time workers’ Agency workers are covered by employment legislation and the agency is considered the employer Employers should give consideration to requests for part-time worker
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Contracts of Employment
Recommended good practice: Contracts in writing, signed prior to commencement Terms stated clearly and precisely Specific reference to other documents such as staff handbooks, collective agreements Ensure employee has received all documentation and is bound by it.
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Wages Acts Payment of Wages Act 1991 National Minimum Wage Act 2000 Pensions Act 2002 Every employee is entitled to a confidential written statement of gross pay, deductions (e.g. PAYE and PRSI) and net pay Employers are obliged to facilitate the employee paying into a PRSA The Minimum Wage is €8.65 (since July 07) The Payment of Wages Act 1991: Entitlement to pay slip Lawful deductions (PAYE, PRSI)
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Statutory Leave Annual Leave Maternity Leave Adoptive Leave
Parental Parental Leave Force Majeure Leave Carers Leave
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Statutory Leave Leave Type Length of Leave Paid/Unpaid Maternity Leave
26 Weeks 16 additional weeks Unpaid Adoptive Leave 24 weeks 16 additional week Parental Leave 14 weeks Blocks of 6 weeks Emergency Family Leave 3 days in 1 year Max in 3 years Paid Carer’s leave 104 weeks Minimum of 13 weeks
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Statutory Leave Organisation of Working Time Act 1997
All employees who have worked 1,365 hours are entitled to a paid leave entitlement of 4 weeks Other employees are entitled to 8% of hours worked subject to a maximum of 4 weeks 1/3 of week where employee has worked 117 hours All employees have an entitlement to public holidays or one of the following: A paid day off within the month An additional annual leave day An additional day’s pay Other forms of non-statutory leave There is no legislative right to paid sick leave There is no legislative right to compassionate leave
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Hours of Work The maximum AVERAGE working week should not exceed 48 hours This does not mean NEVER exceeding 48 hours in any week Rest periods Employees are entitled to a 15-minute break in a 4.5-hour period or break of 30 minutes in a 6-hour period 11 consecutive hours rest in a 24-hour period 24 hours consecutive rest in any period of 7 days Essential to keep records Onus on employer to prove compliance
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Redundancy New reality for many companies Important to get it correct
50% increase in cases of Unfair Dismissal Follow some simple guidelines Main form is the RP50 Available from
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Redundancy Important to remember the role is redundant and not the person Company requires fewer employees Work is to be carried out in a different manner Must have 2 years service 2 weeks pay per year plus 1 week lump sum Ceiling of €600 per week Ex-gratia at company discretion
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Selection criteria are critical
Redundancy Selection criteria are critical Last in first out may be discriminatory Consider a range of factors: Service Skills/Qualifications Performance Disciplinary/Attendance record Customer feedback
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New staff and UD Act Unfair Dismissals Act, 1977 - 2001
Sets out legal framework Statutory Instrument 146/2000 Code of Practice on Grievance and Disciplinary Procedures Sets out how process is applied Must have 1 year’s service Notice counts as service! Maternity, equality and union are covered from Day 1 You must have a grievance and disciplinary procedure in writing and it MUST be COMMUNICATED to employees A policy on IT use is becoming increasingly important. It an area of increasing problems.
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New staff and UD Act Notice begins after 13 weeks
Unless contract allows for greater period Must take care to ensure payment of all notices and leaves Unless case of gross misconduct Should always treat staff as if they can be subject to UD Act Little effort now prevents problem later Duration of Employment Notice Required 13 weeks – 2 years 1 week 2 years – 5 years weeks 5 years – 10 years 4 weeks 10 years – 15 years 6 weeks 15 years – or over weeks
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New staff and UD Act Rules of Natural Justice
The right to be fully informed of the allegations being made The right to have his/her case heard The right of reply The right to question and to call witnesses The right of innocence until proven guilty The right to representation The right of appeal Courts will look at application of these irrespective of length of service Duration of Employment Notice Required 13 weeks – 2 years 1 week 2 years – 5 years weeks 5 years – 10 years 4 weeks 10 years – 15 years 6 weeks 15 years – or over weeks
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Section 29 Industrial Relations Act
New staff and UD Act Section 29 Industrial Relations Act Gives right for employee to have case heard Can have less than 12 months service Outcome is only binding on employee Temptation is to ignore proceedings Bad publicity for employer Always should present case Can avoid ruling if dismissal is with cause Duration of Employment Notice Required 13 weeks – 2 years 1 week 2 years – 5 years weeks 5 years – 10 years 4 weeks 10 years – 15 years 6 weeks 15 years – or over weeks
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Employment Law Overview - Minimum Policies
Disciplinary Grievance Bullying & Harassment Equal Opportunities Data Protection Maternity Leave Parental Leave Adoptive Leave Carer’s Leave Emergency Family Leave Health & Safety
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Overview of Employment Law
Main Learning Points: Legislation is constantly changing Problems will arise Best practice procedures should be in place People Managers must be trained in how to use the law/procedures Taking shortcuts does not work in the long run
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Termination of Employment (overview)
Acts Minimum Notice and Terms of Employment Act 1973 – 1991 Organisation of Working Time Act 1997 Unfair Dismissals Act 1977 – 1993 Redundancy Act 1967 – 2003 A contract may specify the amount of notice that the employee is entitled to in the event of being let go A minimum period of notice applies for employees with 13 weeks service or more… Duration of Employment Notice Required 13 weeks – 2 years 1 week 2 years – 5 years weeks 5 years – 10 years 4 weeks 10 years – 15 years 6 weeks 15 years – or over weeks
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Disciplinary Guidelines
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Disciplinary Guidelines
Unfair Dismissals legislation Procedural fairness Conducting hearings Taking notes 33
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Discipline Management
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What governs dismissal
Unfair Dismissals Act, Sets out legal framework Statutory Instrument 146/2000 Code of Practice on Grievance and Disciplinary Procedures Sets out how process is applied
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Unfair Dismissals Acts, 1977 - 2001
Requirements: 1 years continuous service Notice counts as service Valid and enforceable contract Refer case within 6 months 12 mths exceptional circumstances Rights Commissioner/EAT 36
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Unfair Dismissals Acts, 1977 - 2001
Must be valid contract Must be dismissed Employer terminates the contract Temporary contract not renewed Depending on circumstances Employee terminates the contract Entitled to do so or it was reasonable for them to do so Referred to as ‘constructive dismissal’ 37
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Constructive Dismissal
The employer has a duty of care to look after the welfare of workers. Where this duty is ignored – in the case of bullying and intimidation – then the employer may be liable to a legal action by the employee who has been “hurt”. Leeson vs Glaxo Wellcome Limited refers to a case where a female employee felt bullied by her new boss and felt she had no option but to leave the employment. She was awarded £22,500 by the Employment Appeals Tribunal who found in her favour.
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Fair Reasons for Dismissal
There must be substantial grounds to justify the dismissal Capability Competence Qualifications Conduct Redundancy Other substantial grounds 39
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Unfair Reasons for Dismissal
Pregnancy or related matters Religious or political opinions Race or colour Sexual orientation Age Trade Union membership or activity Taking part in a strike or other industrial action Legal proceedings against employer Member of travelling community Exercising rights under certain legislation 40
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Employer may have a substantive case
Fair Procedures Employer may have a substantive case Procedural fairness is also relevant: In deciding fairness of sanction (if fair) In assessing compensation (if unfair) 41
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Unfair Dismissals Acts, 1977 - 2001
Remedies Reinstatement Reinengagement OR Compensation Actual and future loss Contribution The 4 week basic award (where no loss exists) Maximum 2 year’s salary Wrongful Dismissal Courts where remedies are higher 42
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Principles of Natural Justice
If an employer does not comply with fair procedures the dismissal will be found to be unfair despite grounds justifying the dismissal Dismissal is always deemed unfair Up to employer to prove otherwise 43
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Principles of Natural Justice
Principles of Constitutional/ Natural Justice Right to know full allegations and who is making them Right of reply Right to representation Right to fair, impartial and objective consideration of evidence Right to appeal Common Law rules Implicit in employee legislation 44
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Implementing a Procedure
Starting point of is the introduction of a procedure Staff and managers should be aware and trained in use Ensures disciplinary action is applied fairly and consistently Give copy to employee within 28 days of commencement of employment 45
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The Investigation No action taken until employer has investigated issue Nature of issue will determine extent of investigation Nature/extent of investigation will be examined by Tribunal Determine if fair/unfair 46
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Taking Disciplinary Action
Issue notice of disciplinary hearing Reiterate right of representation Listen – do not interrupt Ensure all evidence is presented Never give the impression that a decision has been made Adjourn to consider all information Impartial objective consideration Disciplinary must be proportionate Keep notes of all meetings Right of appeal 47
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Skip all stages of procedure Only after investigation
Gross Misconduct Can dismiss summarily Skip all stages of procedure No notice period or payment Only after investigation Must be for serious breach of conduct or misbehaviour Must be very careful if using gross misconduct
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Conclusion Substantial reason justifying disciplinary action
Adherence to procedures Principles of natural justice Internal disciplinary Procedure or Code of Practice ‘Reasonable’ employer Last Resort Punishment must fit the crime 49
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Essential Policies and Procedure to comply with Legislation
Equal Opportunity Policy Review recruitment practices Review interview procedures Grievance policy Policy and procedures on HARASSMENT Anti-Bullying Policy Performance reviews Records (onus on proof on employer)
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Resources Web sites National Employment Rights Authority (NERA) IBEC
Equality Authority Department of Enterprise Trade & Employment Health & Safety Authority Labour Relations Commission Small Business enterprise
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