The National Employment Rights Authority (NERA), which now comes under the Workplace Relations Commission (WRC), has the stated objective of achieving a culture of compliance with employment law by informing employers and employees of their respective responsibilities and entitlements and by working in close cooperation with them.
NERA continues to actively increase its visibility in the workplace and is continuing to work closely with other government departments, such as Social Protection, the Revenue Commissioners, and the Health and Safety Authority.
NERA carries out inspections of employers in Ireland to inspect for breaches of employment legislation and to ensure on-going compliance. Organisations that are not compliant are at risk of being fined and face possible prosecution.
NERA Inspections
The most recent published report shows that during 2013, NERA completed 5,546 inspections, of which 9% were jointly undertaken with officials from Revenue, Department of Social Protection and the Gardaí. This demonstrates an 18% increase on inspections carried out in the previous year. Many of these inspections where unannounced and took place outside normal office hours at night and at weekends. The 5,546 inspections involved over 70,360 employees.
It is also worth noting that the number of inspections on the back of complaints increased by 20% from 736 in 2012 to 917 in 2013. Padraig Dooley, deputy director of NERA, commented that
“Detection of non-compliance with the employment rights legislation at the initial stage of inspections continues to be a cause for concern”.
NERA Prosecutions
While NERA’s primary function is to seek voluntary compliance, failure to comply with a request from NERA may lead to prosecution. In 2013, prosecutions increased by 1.5% and, for the first time during the course of a NERA inspection, a bench warrant was issued and a search warrant used to gain access to reports held by an employer.
As such, being prepared for a NERA inspection is becoming increasingly important.
How to Prepare for a NERA Inspection
NERA’s Inspection Powers under legislation enable them to enter any premises at a reasonable time. Upon receipt of an employee complaint, they can call unannounced. Prior to a standard inspection they must provide notice of a general audit and can then:
- Demand sight of records
- Inspect records
- Take copies of records
- Interview and require information from a relevant person
In order to ensure that you are compliant with a NERA inspection, it is important that you ensure that the following documentation is in order and that you have a record of same:
- Employee Details for every employee to include:
- Full Name
- Address
- PPS Number
- Date of birth
- Contracts of employment for all employees which should include:
- The full names of employer and employee
- The address of the employer in the State or its principal place of business in the State, or registered office
- The place of work of the employee or if there is no fixed or main place, then a statement that the employee is permitted and required to work at various locations
- The title of the job or nature of the work
- The date of commencement of the contract
- If it is a temporary contract, the expected duration, or if it is for a fixed term, the date on which the contract expires
- The rate or method of calculation of the employee’s remuneration
- The intervals between payment of remuneration e.g. weekly, monthly
- Any terms and conditions relating to hours of work, including overtime
- Any terms and conditions relating to paid leave, other than paid sick leave
- Any terms and conditions relating to, incapacity due to sickness or injury and pensions or pension schemes
- The period of notice required to be given and received by an employee, either statutory or under the terms of the contract of employment
- Details of any collective agreement which directly affects an employee’s terms and conditions
- Employment permit status or evidence that permit is not required
- CV - Experience of Employee
- Record for all employees of:
- Date of Commencement and Termination, (where appropriate)
- Notice periods
- Record and calculation of:
- Annual Leave (including payment)
- Public Holidays (including payment)
- Documented details of:
- Number of hours worked on a daily & weekly basis (which should show compliance with relevant provision of Organisation of Working Time Act 1997)
- Start and Finish times each day
- Notification of start and finish times – if variable (e.g. rosters)
- Rest breaks or alternatively notification of breaks and procedures
- Copy of payment details hourly rate of pay/salary and numbers of hours worked for same:
- Payslips for all employees
- Evidence of at least minimum wage paid to all employees
- Documented Register of Young Persons (under 18)
Practical Considerations
Employers are required by law to keep their employment records (the above list is not exhaustive) at the place of employment. Practical measures that employers should consider:
- Putting in place practical procedures to ensure compliance, for example, checklists etc.
- Auditing current practices to establish if there are any existing areas of exposure or identify if any corrective measures are required to ensure compliance
Should you require any additional information on NERA inspections please contact the advice line 01-855 5050.
