THERE HAVE been instances of “dispute shopping” and “spurious claims” among the substantial increase of employment grievance cases taken to the State’s resolution bodies, both the Government and the Labour Relations Commission (LRC) have confirmed.
Minister of State for Labour Affairs Dara Calleary said that bodies dealing with employment and redundancy disputes have brought the matter to his attention.
“The agencies tell me there is an issue there with people shopping around or lodging claims with no basis. It’s small enough, given the huge surge of genuine claims, but it’s still there,” he said.
LRC chief executive Kieran Mulvey also confirmed that evidence has come to light of a small number of people lodging a complaint with a second resolution body following a rejection of a claim by another body.
“There are spurious claims, there’s no doubt about that,” he said.
Mr Mulvey was responding to concerns expressed by Fianna Fáil TD Frank Fahey that an “organised claim culture” has grown up around dispute resolution bodies such as the LRC.
Mr Fahey alleged that there has been a “flood of unsubstantiated claims” made to the LRC and other bodies, mainly by people who have moved to Ireland to work in recent years. “There should be consequences for people who make vexatious claims,” said Mr Fahey.
Mr Mulvey said there has been a huge surge of referrals to dispute resolution in the past two to three years.
He said the number of claims being lodged to all bodies was 40,000 last year, roughly twice as many as three years previously. The bodies covered include the LRC, the Labour Court, the Equality Tribunal, the National Employment Rights Authority (NERA).
He said the disputes related to many issues including terms of redundancy, holiday pay or alleged failures to pay the minimum wage or rates agreed by collective bargaining.
“We do have a substantial number of claims from workers from non-EU and other EU countries. But the proportion is reflective of the proportion of those in the workforce,” he added.
It is understood that some of the spurious claims have related to allegations of harassment or bullying, disputes over payment of holiday or redundancy pay, and minimum wage.
In addition, a small number of people have taken a similar claim, or lodged a different claim, to another resolution body, following the rejection of their claim by the initial agency.
Mr Calleary said he has ordered a review of the current system with a view to prevent duplication, to root out spurious claims, and to deal with dispute shopping. He said he was determined to move on this issue during 2010.
Mr Fahey told The Irish Times that he had been approached by a number of employers who have had cases taken against them which proved not to have had any foundation and were rejected. He said he was concerned that the system was being abused by some claimants, who were taking the same grievance, or a new grievance, to another resolution body, having failed at the first attempt.
“Currently a claim can be made to a number of agencies in a ‘shopping around’ style process. There should be clear lines of demarcation so that overlapping is avoided,” he said.
Complaints: Where to go
There are a number of bodies to which an aggrieved person or group of workers can take a complaint.
Rights Commissioner Service (RSC): Usually a retired trade union official or human resources executive. Claims include minimum wage, working hours and carer’s leave.
The Employment Appeals Tribunal (EAT): Deals with minimum notice and redundancy. Hears appeals from RCS.
The Labour Relations Commission: Deals with disputes in the workplace, collective and individual in nature. Advisory, conciliation and mediation services.
Labour Court: More formal. Deals with disputes. Decisions non-binding unless parties agree.
Equality Tribunal: Deals with complaints of alleged discrimination in the workplace.
National Equality Rights Authority: Enforces rights on working hours, the National Minimum Wage, industry specific agreements, protection of young workers and payment of wages.