Our expert advisor Darragh Whelan provides a round-up of the National Employment Rights Authority’s annual review – and what it could mean for your business
The National Employment Rights Authority (NERA), now known as the Workplace Relations Commission, has published their final annual report for the service as a separate entity of the Department of Jobs, Enterprise and Innovation. NERA works with employers to achieve compliance and, where necessary, enforce compliance using the courts. The NERA annual report (from now on to be known as the Workplace Relations Commission annual report) provides important information for every employer to be mindful of when seeking to ensure compliance with employment rights obligations.
2015 Report Highlights
The highlights of the 2015 annual report for the period 1
st January 2015 to 30
th September 2015 include;
- 3,500 business inspections and visits carried out during this period in 2015;
- Information provided to over 48,775 people (44,654 callers and 4,101 e-form queries);
- Employees and former employees accounted for 74% of callers while 18% of callers were employers; and
- Employment Permits, Working Hours, Terms of Employment, Redundancy, Payment of Wages, and Unfair Dismissal represent the most common categories of queries dealt with.
The report also highlights that the Workplace Relations Customer Services, which is based in NERA and is the single portal for all employment rights complaints, received 9,865 employment rights complaints in 2015 – an increase of 28% on the 12,609 complaints received in the same period in 2014.
Workplace Inspections
In in the period 1
st January 2015 to 30
th September 2015, a total of 3,535 inspection cases were completed involving over 46,644 employees. This is a drop from 4,186 cases in the same period in 2014.
The amount of unpaid wages recovered in the period in 2015 was €897,411, an increase of 40% on €636,884 in the same period in 2014. There was a small decrease in the number of complaints received with 604 in this period in 2015 compared to 635 in the same period in 2014.
Out of the 3,535, there was an average compliance rate of 57% resulting from workplace inspections (including unannounced inspections) across all sectors. Hair and Beauty was the least complaint sector (30%) followed by Transport (33%). The most complaint sector was Electrical (67%) followed by Health, Nursing and Childcare (64%) and Professional Services (64%).
Prosecutions
NERA’s policy was to seek voluntary compliance where breaches of employment law were detected. The vast majority of cases are resolved during the inspection process, with only a very small number (2.4%) prosecuted. However as a result of such prosecutions in the period 1
st January 2015 to 30
th September 2015 €96,766 in fines were imposed (plus €1000 in donation to the court poor box). The number of cases prosecuted in this period increased from 1.5% of 4,186 employers inspected in 2014.
It should also be known that where it is suspected that a Company has committed an offence under Irish Employment Legislation and where it is suspected that a Director, Secretary, Manager or an Officer of that Company has consented, approved or been involved (even through neglect) in the commission of the offence, they may also be prosecuted.
Employment Permits
Inspectors were authorised officers of the Minister under the Employment permits Acts. Inspections aimed to identify potential employment law breaches in workplaces and also to ensure that the information supplied in the application for a work permit was accurate and that the terms and conditions under which a permit was granted were being complied with.
In in the period 1
st January 2015 to 30
th September 2015, NERA detected 274 possible breaches of the Employment Permits Acts; which is a significant decrease on 2014 when 600 breaches were recorded for the full year. 58 employers were successfully prosecuted under the Employment Permits Acts to 30
th September 2015.
Protection of Young Persons Licences
NERA was responsible for issuing licences under Section 3 of the Protection of Young Persons (Employment) Act, 1996. In the 9 months ending 30th September 2015 a total of 261 licences were issued in respect of 681 children working in the arts/TV/film.
These licences allowed children (i.e. under 16s) to be employed in cultural, artistic, sports or advertising work which is not harmful to their safety, health, or development and did not interfere with their attendance at school.
Working with Other Agencies
NERA had statutory powers to exchange information with the Department of Social Protection and the Revenue Commissioners. In in the period 1
st January 2015 to 30
th September 2015, NERA carried out 404 joint investigations with Revenue and/or the Department of Social Protection. These activates inspected compliance breaches in relation to employment rights, social protection, and taxation. NERA were permitted to be accompanied by Gardai during inspections were appropriate. 353 joint inspections took place for the full year of 2014 which indicates a growing emphasis on collaborative work between government agencies.
Conclusions
The 2015 report provides some interesting statistics for an employer with the main highlights being that, although there was a decrease I the number of cases from the same period in 2014, there was a 40% increase in the amount of recovered unpaid wages. Prosecution have risen since 2014 as has the level of collaborative work amongst government agencies.
Should you receive notice of an upcoming WRC inspection or wish to get clarification on any element of an inspection or employment rights claim please don’t hesitate to contact Darragh and our Employment law advice team our 24 Hour Advice Service on 01 855 50 50
