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

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Presentation on theme: "EMPLOYMENT OBLIGATIONS OF SMALL BUSINESS Speaker: Jim Curran Head of Research & Information Services, ISME The Independent Business Organisation."— Presentation transcript:

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

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

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

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

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

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

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

8 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

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

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

11 SAMPLE CONTRACT OF EMPLOYMENT Date __________ Name__________ Address _________ 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 65th 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 Companys absolute discretion. In such case you will be entitled to 1 weeks 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.

12 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 doctors 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 & 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 & 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

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

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

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

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

17 REST PERIODS General Rest Periods General Rest Periods –Daily-11 consecutive hours –Weekly- 24 hours preceded by 11 hours Rest Breaks Rest Breaks –15 mins for 4.5 hours worked –30 mins for 6 hours worked Compensatory rest Compensatory rest Records Records The Independent Business Organisation

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

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

20 Harassment any form of unwanted conduct related to any of the discriminatory grounds, being conduct which has the purpose or effect of violating a persons 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

21 Bullying & Harassment (Contd) Bullying BullyingDefinition: 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 individuals 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. 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 individuals 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 Bullying is different to harassment Clarity on what is NOT bullying at work Clarity on what is NOT bullying at work The Independent Business Organisation

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

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

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

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

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

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

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

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

30 Disciplinary Procedure General Principles 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

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

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

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

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

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

36 QUESTIONS The Independent Business Organisation

37 Jim Curran ISME 17 Kildare Street Dublin 2 Tel:


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