The Workplace Relations Act 2015 comes into force on 1 October 2015 and it changes the way in which employment claims are made, the procedures to deal with claims, and standardises the time-limits for claims and appeals.

• All statutory employment claims will now be made on one claim form online at https://www.workplacerelations.ie/en/
• There is provision for early resolution and mediation of claims.

• The hearings will be in private with one Adjudication Officer inquiring into the claims. The parties will make submissions and evidence will not be taken on oath from witnesses.

• The Adjudication Officer can summons witnesses and order production of documents for the hearing.

• Claims must be lodged within 6 months of the breach of employment legislation, and the time period for making a claim can be extended to 12 months where there is reasonable cause. The time-limits for making all statutory employment claims have been standardised to provide for this in the Act.

• Decisions of the Adjudication Officers will be anonymised and published on the Workplace Relations website.

• The enforcement powers of NERA Inspectors have been greatly extended to allow:-

1.  Inspectors to enter into a place of employment, to take and remove documents, and require    any person to answer questions. It is a criminal offence to obstruct or interfere with an Inspector or Garda exercising their powers or to make a declaration or give information that is false or misleading in any material respect.
2. Inspectors can serve Compliance Notices on employers outlining an employment breach where they are satisfied there is a breach, requiring the employer to take action or refrain from taking action within a specific period. Failure of an employer to comply with a Compliance Notice by the date outlined is a criminal offence.
3. There is a right of appeal for an employer against the Compliance Notice within 42 days to the Labour Court.
4. An Inspector can issue an on the spot fine or “fixed payment notice” of a maximum of 2,000 euro to an employer in relation to breaches of:

a.      The consultation requirements for collective redundancies

b.      Failure to give a written payslip to an employee setting out gross wages and deductions
c.      Failure to comply with an employee’s request to furnish a statement of the employee’s average hourly rate over a pay reference period during the previous 6-12 month period under the National Minimum Wage Act 2000.

• Where compensation is awarded by an Adjudication Officer, it is an offence for an employer to fail to pay the compensation awarded to an employee, and the employer risks a Class A fine or up to 6 months in prison or both. However, there is a defence open to an employer that the employer is unable to comply with the award due to financial circumstances.

• All of an employee’s claims under different legislation will now be heard by one Adjudication Officer at the hearing.

• When a decision has been made by an Adjudication Officer, there is a right of appeal to the Labour Court within a period of 42 days and the appeal time-limits have been standardised across all of the statutory employment legislation.

• There is a right of appeal to the High Court on a point of law from the decision of the Labour Court on appeal within 42 days.

This is a summary of recent changes now enacted in the Workplace Relations Act 2015, and legal advice should be obtained in specific instances. If you have any queries in relation to these changes, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys

What are the pitfalls for business?

The high profile collapse of the Woolworths and Ethel Austin Stores in the UK when the companies went into administration meant the loss of thousands of jobs.  The European Collective Redundancies Directive consultation requirements apply where there are large scale redundancies in businesses and at least 5 employees from an “establishment” of 21 employees upwards are made redundant during a 30 day period.  Where the consultation requirements apply the “establishment” or business must enter into a 30 day consultation period with employees in advance of giving notice of redundancy to try to mitigate their impact on employees.

The employees’ trade union, USDAW, challenged the consultation process entered into by Woolworths and Ethel Austin who did not consult with employees at retail units of less than 20 employees. The Union believed it was unfair that employees from larger retail units only were allowed to consult with the companies. They argued that Woolworths should have aggregated the number of employees being made redundant for the entire business in the period for consultation purposes and not just considered each retail store individually. The European Court considered the consultation requirements and found these do not have to be aggregated within the group for the period.  This means businesses or retail stores with less than 20 staff do not have to consult with employees for 30 days in advance of large scale redundancies across the group.

This is significant for employers as a breach of the consultation requirements has serious financial implications. Where there is a breach of the 30-day consultation requirement by an employer, each employee may be entitled to compensation for the breach of up to 4 weeks’ remuneration.

In addition, if a notice of redundancy is issued to an employee during the 30 day consultation period in breach of the Directive a fine of €250,000 may be levied against an employer.

This is helpful clarity for employers entering into a countrywide or cross-jurisdictional restructuring programme.