On 12 May 2015, the Workplace Relations Bill went through the final stage of the legislative process and is set to come into force on 01 June 2015. When this occurs it will signal the beginning of the end of the Employment Appeals Tribunal, Rights Commissioner Service and the Equality Tribunal. But what will this mean for employers? A Long Time Coming There are very few things that can be said will draw uniform approval and agreement from employers and employees alike but tribunal reform falls into that unique category. It has long been agreed that the current tribunal system is cumbersome, costly and time consuming. Employers and employees could find themselves at hearings before the Rights Commissioner, Employment Appeals Tribunal, Equality Tribunal, Labour Court and Circuit Court as a result of one dispute or one work related incident. As such, employers and employees were expending significant time, money and effort in resolving a work related dispute. Such a protracted dispute will likely only ever strain relations between the employee and employer and this is especially problematic where the employment relationship is ongoing. Upcoming Reform - Employment Claims When the Bill is enacted (circa 01 June 2015), it will signal the following:
- All employment claims will be heard at first instance by the newly formed Workplace Relations Commission. Any appeal of such claims will go to the Labour Court as a part of a new two-tiered system. This essentially the Rights Commissioner, Employment Appeals Tribunal, and Equality Tribunal will be dissolved and their functions will absorbed by the Workplace Relations Commission (WRC) and the Labour Court.
- Any claims that have been lodged before the new Bill comes into force, but have not yet been heard, will continue to be handled by the current system. As such, the EAT, Rights Commissioner and Equality Tribunal will continue to exist for a number of years until all outstanding claims are resolved. However, all claims that are lodged after the Bill comes into force will go through the new streamlined system.
- WRC hearings will not be conducted in public and whilst decisions will be published online they will not disclose the names of the employer or employee. Labour Court hearings and decisions will be made public with full disclosure however.
- The WRC may dismiss an employee complaint if the deem it to be frivolous or vexatious.
- Under the current system, a number of claims can be appealed to the Circuit Court who could conduct a full rehearing. This avenue will no longer exist for claims taken after the Bill comes into force. As such, any decision of the Labour Court under the new system can only be appealed to the High Court on a point of law.
- Under the new system, the WRC or Labour Court can request that certain claims be heard by means of written submission only. Where both parties agree then there will be no formal hearing and instead the tribunal will reach its decision based on the written submissions. However, neither party will be obliged to agree to this approach and where agreement is not forthcoming then the matter will go to a formal hearing.
- All employment claims under the new system must be taken within 6 months of the alleged incident. If the employee has failed to do so then the deadline may be extended to 12 months where the employee had a reasonable cause for the delay. This is more favourable for employees as under the current system a number of claims, including unfair dismissal, required the employee to show the tougher ‘exceptional circumstances’ for any such delay.
- If an employer fails to comply with a decision to award compensation then this will be deemed an offence which, on summary conviction, can result in a fine up to €5000 or imprisonment up to 6 months, or both.
- The new system places a heavy focus on mediation. If the WRC feels that a claim can be resolved by mediation, and the employer and employee agree, then it will be referred to a mediation officer. Any resolution reached through this private process will be legally binding. If mediation fails to resolve the dispute then the matter will go forward for a formal hearing.
Upcoming Reform - Workplace (NERA) Inspections When the Bill is enacted (circa 01 June 2015), it will signal the following:
- A key part of the reform process to date has been the merging of NERA into the WRC. Under the new system, NERA Inspectors will be known as Workplace Relations Commissioners and they will have the power to issue compliance notices to employers to either carry out an act or to cease an act/practise. An employer may aoppeal such a notice to the Labour Court and this in turn can be appealed to the Circuit Court.
- In addition, Workplace Relations Commissioners will have the power to issue fixed-payment notices up to €2000 to employers who have failed to comply with certain employment obligations ion respect of collective redundancies, payment of wages, and the national minimum wage.
Conclusion The new system when enacted in June will be a major advancement in the resolution of employment disputes. It is expected that this revised system will allow for the faster resolution of claims and the streamlined two-tier system in conjunction with the emphasis on mediation should hopefully result in employers spending less time defending claims at tribunals. If you have any questions in respect of the above article then please do not hesitate to contact our 24 Hour Advice Service on 01 855 50 50.
