Publication of annual report highlights WRC’s employer watchdog function
The Workplace Relations Commission (WRC) published its annual report for 2018 last week. The figures reveal that the WRC continues to keep a watchful eye on the activity of Ireland’s employers.
Announced and unannounced inspections
WRC inspectors carried out a total of 5,753 inspections in 2018, 60% of which were unannounced. This figure represents a 20% increase on 2017 and covered 133,462 employees. 12% of all visits were joint investigations with Revenue, the Department of Employment Affairs and Social Protection and/or the Garda National Immigration Bureau.
‘High risk’ sectors
The WRC’s enforcement activity focuses on sectors and employers that it considers to be ‘high risk’. While the food and drink sector accounted for the highest number of inspections, the WRC also focuses on sectors with high breach rates. Sectors with breach rates greater than 60% included electrical, fisheries, hair and beauty, transport and wholesale and retail. The equine sector recorded the highest breach rate in 2018 at 84%.
Offences for unpaid wages
The report highlights the WRC’s success in recovering over €3.1million in unpaid wages to employees. This figure represents a notable 75% increase on the amount recovered in 2017. The Employment (Miscellaneous Provisions) Act, 2018 which came into force in March introduces changes to both minimum wage and the regulation of flexible work practices. Employers will need to ensure that they are familiar with the new compliance requirements to avoid the risk of WRC penalties for either unpaid or incorrectly calculated wages.
Increasing trend of multiple claims against a single employer
The WRC identified a worrying trend both from its perspective and from the employer perspective of multiple claims being made against a single employer for identical rights-based complaints. The bookmaker Paddy Power was the subject of one such action which we reported on last year. In 2018, the WRC received close to 1,000 such complaints which represented a considerable drain on its resources though most of these claims were resolved through the mediation service without the need for adjudication.
Age discrimination claims up steeply
Referrals to the WRC under the Employment Equality Acts 1998 – 2015 increased substantially from 671 in 2017 to 1,449 in 2018. Discrimination complaints on the ground of age increased more than threefold (343%) while complaints on the ground of religion also increased more than twofold (244%). As working lives grow longer, employers that operate a mandatory retirement policy face an increased risk of equality claims on the ground of age. A mandatory retirement age must be objectively justified to successfully defend any such claims.
Bullying Code of Practice set for publication this year
The report also includes a commitment from the WRC to publish an updated Code of Practice on Bullying in the Workplace. The WRC and the Health and Safety Authority are working on developing a joint code of practice which will be published later this year.
Contribution of stakeholders acknowledged
The report acknowledges the contributions of various stakeholders (including Peninsula) in the improvement of service delivery levels which are reflected in the overall increases in both dispute resolution and inspection activity.
Biggest risk employers face remains failure to keep proper records
Finally, the report points out that employers are most likely to breach employment law by failing to keep proper employment records. The 2018 report advises that the most common breach of employment legislation (at 52% of all breaches) is the failure to keep adequate employment records. It is also notable that the WRC receives more claims under the Organisation of Working Time Act, 1997 than under any other employment legislation. Failing to maintain proper working time records remains an avoidable risk that employers tend to overlook.
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