EMPLOYMENT CASE LAW / Human Resource Management: amendments and developments in irish employment law
Employment Law is a constantly changing landscape. 2015, alone saw monumental changes in Employment Law structures, Registered Employment Agreements, significant decisions at a European level, as well as amendments and developments in Irish Employment Legislation.
New Employment Structures
Perhaps the most significant development in Irish Employment Legislation over the past 70 years is the introduction of the Workplace Relations Commission. The Commission will see the amalgamation of National Employment Rights Authority, the Labour Relations Commission, Employment Appeals Tribunal and the Equality Tribunal, which will effectively become a single body. In the first instance all complaints will now be made to the Workplace Relations Commission. In cases where an individual choses to appeal a decision, it will be brought to the reconfigured Labour Court, with the only further appeal being to the High Court on a point of law.
The Workplace Relations Commission is hoped to replace the older structures with a much more effective, impartial workplace relations service, a more workable means to appeal a decision within a reasonable timeframe and an overall reduction in costs. The new Workplace Relations Commission is also anticipated to be more centralised, unlike the previous systems, in terms of maintaining a database of case information. The end result should bring a better service for both Employers and Employees and much more streamlined, simplified process.
Sectoral Employment Orders
New Sectoral Employment Orders (SEOs) have replaced Registered Employment Agreements (REAs) which were abolished following a Supreme Court decision in 2013.
Previously, Employers and Unions would agree pay and conditions for Employees in a particular sector. However, in 2011, the Supreme Court had found this system to be unconstitutional. Following this decision new Employees in such sectors were only entitled to basic protections of the Minimum Wage and Working Time Acts.
SEOs have the power, unlike REAs, to bind an industry as a whole. Recent decisions in relation to pay and conditions for, 30,000 contract cleaners and 20,000 security sector Employees were made. Cleaners will now receive a 2.6% pay increase, at €9.75 an hour for their first 44 hours as well as 20,000 security sector Employees will see their pay rise from €10.01 to €10.75 an hour - a significant increase of 7.4%.
Driving to Work is Work
Another decision which is likely to impact Irish Organisations involved a ruling by the European Court of Justice, which has ruled that the time spent travelling to and from the first and last appointments of the day, by workers without a fixed office should be regarded as working time. Currently the vast majority of workers without fixed offices are not paid for the time they spend travelling to the first job of the day and from the last job of the day.
The ruling was made following a Spanish case involving security companies Tyco Integrated Security, Tyco Fire and Security Corporation Servicios. Technicians working for the company were given the use of company cars to travel to and from the various locations where they were required to carry out their work. Workers within the company would often travel up to 100 kilometres for the first job of the day.
In issuing its decision the European Court of Justice found that “During the necessary travelling time – which generally cannot be shortened – the workers are therefore not able to use their time freely and pursue their own interests. The fact that the workers begin and finish the journeys at their homes stems directly from the decision of their Employer to abolish the regional offices and not from the desire of the workers themselves.” They ruled that time traveling to work could be contrary to the EU’s Working Time Directive, which lays down rules on rest periods and maximum working hours.
Irish Organisations employing workers such as electricians, tradesmen, care workers and sales reps, as well as a range of other Employees, could now be in breach of EU working time regulation according to this ruling. Employers should place careful consideration with Employees travelling to a variety of locations in the course of the working day. Businesses could now be liable for paying for the time for Employees without a fixed working base for their journey time for the first job and from the last job of the day, however it is still to be seen how this decision will be implemented in Ireland.
2015 has seen plenty of changes in Irish Employment Legislation. We’ve highlighted the main developments Employers should be aware of below:
2015 has been a hugely significant year in term of Employment Law developments and amendments. Employers should continue to remain cognisant of all facets of Employment Legislation and what’s likely to be expected in the future. Preparing where possible for such changes ensures an Organisation is best placed to deal with any issues or problems which may arise from this constantly changing landscape.
New Employment Structures
Perhaps the most significant development in Irish Employment Legislation over the past 70 years is the introduction of the Workplace Relations Commission. The Commission will see the amalgamation of National Employment Rights Authority, the Labour Relations Commission, Employment Appeals Tribunal and the Equality Tribunal, which will effectively become a single body. In the first instance all complaints will now be made to the Workplace Relations Commission. In cases where an individual choses to appeal a decision, it will be brought to the reconfigured Labour Court, with the only further appeal being to the High Court on a point of law.
The Workplace Relations Commission is hoped to replace the older structures with a much more effective, impartial workplace relations service, a more workable means to appeal a decision within a reasonable timeframe and an overall reduction in costs. The new Workplace Relations Commission is also anticipated to be more centralised, unlike the previous systems, in terms of maintaining a database of case information. The end result should bring a better service for both Employers and Employees and much more streamlined, simplified process.
Sectoral Employment Orders
New Sectoral Employment Orders (SEOs) have replaced Registered Employment Agreements (REAs) which were abolished following a Supreme Court decision in 2013.
Previously, Employers and Unions would agree pay and conditions for Employees in a particular sector. However, in 2011, the Supreme Court had found this system to be unconstitutional. Following this decision new Employees in such sectors were only entitled to basic protections of the Minimum Wage and Working Time Acts.
SEOs have the power, unlike REAs, to bind an industry as a whole. Recent decisions in relation to pay and conditions for, 30,000 contract cleaners and 20,000 security sector Employees were made. Cleaners will now receive a 2.6% pay increase, at €9.75 an hour for their first 44 hours as well as 20,000 security sector Employees will see their pay rise from €10.01 to €10.75 an hour - a significant increase of 7.4%.
Driving to Work is Work
Another decision which is likely to impact Irish Organisations involved a ruling by the European Court of Justice, which has ruled that the time spent travelling to and from the first and last appointments of the day, by workers without a fixed office should be regarded as working time. Currently the vast majority of workers without fixed offices are not paid for the time they spend travelling to the first job of the day and from the last job of the day.
The ruling was made following a Spanish case involving security companies Tyco Integrated Security, Tyco Fire and Security Corporation Servicios. Technicians working for the company were given the use of company cars to travel to and from the various locations where they were required to carry out their work. Workers within the company would often travel up to 100 kilometres for the first job of the day.
In issuing its decision the European Court of Justice found that “During the necessary travelling time – which generally cannot be shortened – the workers are therefore not able to use their time freely and pursue their own interests. The fact that the workers begin and finish the journeys at their homes stems directly from the decision of their Employer to abolish the regional offices and not from the desire of the workers themselves.” They ruled that time traveling to work could be contrary to the EU’s Working Time Directive, which lays down rules on rest periods and maximum working hours.
Irish Organisations employing workers such as electricians, tradesmen, care workers and sales reps, as well as a range of other Employees, could now be in breach of EU working time regulation according to this ruling. Employers should place careful consideration with Employees travelling to a variety of locations in the course of the working day. Businesses could now be liable for paying for the time for Employees without a fixed working base for their journey time for the first job and from the last job of the day, however it is still to be seen how this decision will be implemented in Ireland.
2015 has seen plenty of changes in Irish Employment Legislation. We’ve highlighted the main developments Employers should be aware of below:
- Accrual of Annual Leave Whilst of Sick Leave
New provisions within the Organisation of Working Time Act have included amendments whereby an Employee on long term sick leave can now accrue annual leave.
Prior to these changes, the Organisation of Working Time Act 1997 stated that annual leave was calculated on the basis of time worked and was silent on the issue of how time spent on sick leave should be regarded for the purposes of calculating annual leave. - Employment Equality (Amendment) Bill 2015
The Bill provides equality for Employees of education, medical and other sectors under the direction of religious Organisations.
“A religious Organisation shall not be taken to discriminate against a person for the purposes of this part or part II by giving favourable treatment on the religion ground to an Employee or a prospective Employee where the religion or belief of the Employee constitutes a justified occupational requirement”
It is anticipated this Bill will contribute to a fairer systems between the rights of freedom of religion or association, and the rights of persons in employment, or prospective Employees, to be free from discrimination. - The Equality (Miscellaneous Provisions) Bill 2013
The amendment, when enacted, will introduce a requirement for Employers to objectively justify a mandatory company retirement age linked to a legitimate aim. It is further proposed that objective justification for the termination of fixed term contracts used post retirement be introduced as part of this. This will have implications for Employers using fixed term contracts to bridge the gap for Employees post contractual retirement age and before they receive the State pension. - Protected Disclosures Act 2014
Although the Protect Disclosures Act has been in force since 2014, during the past year it has had its first case heard under the Act. The case in question, which has since failed, involved an individual allegedly making “protected disclosures” and subsequently being let go.
Dan Philpott was appointed as CEO of Marymount University Hospital and Hospice Ltd in May 2014 and dismissed in February of 2015. The reason given for the termination of his contract was “significant interpersonal difficulties between Mr Philpott and other members of staff”.
Judge James O’ Donohoe stated that although the Court accepted without reservation Mr Philpott’s sincerity in relation to the matters which he raised, objectively he had not satisfied the reasonableness test.
2015 has been a hugely significant year in term of Employment Law developments and amendments. Employers should continue to remain cognisant of all facets of Employment Legislation and what’s likely to be expected in the future. Preparing where possible for such changes ensures an Organisation is best placed to deal with any issues or problems which may arise from this constantly changing landscape.
