Taxation of Redundancy Payments - See ‘Redundancy Pay’ - Statutory redundancy payments made to employees are not taxable. Therefore, the entire statutory redundancy lump sum made to employees is tax free. In addition, discretionary ex-gratia redundancy payments made on top of the statutory lump sum qualify for a tax exemption. This additional sum is not taxable, up to €10,160 plus €765 per complete years’ service. For example, if an employee is entitled to statutory redundancy of €2000 this is tax free. If this employee has worked for 5 years then any ex-gratia payment over and above the €2000 is tax-free up to [€10,160 + (€765 x 5 years)] = €13985.
Terms and Conditions- The terms and conditions are the written particulars that define the essential elements of an employment contract or the relationship between an employer and employee. These could include place of work, rate of pay, annual leave, sickness absence, public holidays, holiday pay, job title, hours of work, probationary period, notice period, disciplinary rules and procedures, grievance procedures etc.
Terms are agreed between the employer and employee, as opposed to conditions which are instructed by the employer and must be adhered to during the employment.
Third Party Pressure- Third party pressure arises when a customer or client threatens to withdraw their business unless you dismiss one of your employees. This may occur when the employer provides services to a client and employs people to work on behalf of the client, sometimes on their premises. Examples include security guards, cleaners, secretarial staff.
Because of this relationship your clients may from time to time request than an individual be removed from a job in accordance with their contract with you. In such circumstances you will need to investigate the reasons for such requests. There may be disciplinary action to take e.g. the security guard is on C.C.T.V asleep on duty. This would be normally viewed as gross misconduct warranting summary dismissal. You may take action short of dismissal such as a written warning for negligence in job performance E.G not adhering to cleaning frequencies.
If your client maintains their stance and you do not have grounds to terminate for conduct or capability issues, you will then need to take alternative steps to ensure that alternative work is provided. This would be on another contract with potentially different hours and on a different rate of pay.
If this is not possible the likely outcome will be termination with notice.
Trade Unions-A trade union is an organised grouping of employees which operates for the purpose of ensuring that employees receive fair treatment in respect of their working terms and conditions, primarily through the vehicle of collective bargaining. See ‘Collective Bargaining’
Training Agreements- As an employer it can be immensely frustrating to lose an employee shortly after you’ve sent them on an expensive training course. Should the employer wish to recover training fees from employees in those circumstances, they need to set up a training agreement prior to the training taking place. This is entirely separate from the contract of employment. Under the training agreement, the training fees constitute a loan which must be paid back should the employee leave (or be dismissed for gross misconduct) within a certain period post completion of training.
Transfer of Undertakings (TUPE)- The European Communities (Protection of Employees on Transfer of Undertaking) Regulations, 2003 (the TUPE Regulations) apply where a business, or part of a business, transfers from one owner to another. They are designed to safeguard employee rights in the event of such a transfer, and establish the responsibilities of both the previous and new owners of a business. In essence, where TUPE applies then the employees will transfer from the previous owner (transferor) to the new owners (transferee) and the new owner is obliged to maintain the employees’ terms and conditions existing at the time of the transfer. While TUPE primarily applies to straight-forward business sales and mergers, the regulations may also protect employees in situation such as the surrendering of a lease on a commercial premises or where an employer takes over as the service provider on a particular contract (e.g. cleaning or security contracts).
Tribunals - Employment tribunals are the mechanism through which grievances relating to employment law are resolved. Issues could include unfair dismissal, redundancy payments or discrimination.
Employment Tribunals are independent judicial bodies who determine disputes between employers and employees over employment rights.
Tribunals are independent, generally open to the public and operate like a court but without some of the formality of a court environment.
