Essential law for business owners

If you are operating a business either as a sole trader, partnership or as a company, then it is important that you are fully aware of all your obligations as an employer from an Employment Law perspective.

Employment Law is governed in Ireland by a number of different Acts.

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In this article, we will set out various factors employers should be conscious of from an employment law perspective.

The Workplace Relations Commission

The Workplace Relations Commission was established on the 1st of October, 2015, and is an independent Statutory Body.

The Commission was established by The Workplace Relations Act, 2015 and replaces a number of existing bodies such as the Labour Relations Commission and the Equality Tribunal.

Common complaints that are brought to The Workplace Relations Commission include unfair dismissal and employment and equality complaints.

The Commission provides advisory, conciliation and mediation services with a view to parties trying to resolve any issues without resorting to formal Adjudication proceedings.

Employees who want to make a complaint or refer a dispute can do so by filling out an Application which is available on the Commissions website www.workplacerelations.ie.

Contract of employment

It is strongly advisable that a Contract of Employment should be in place that clearly sets out the terms of the employment as agreed between the parties in respect of pay, hours, notice periods, holidays, pension and sick pay entitlements and grievance procedures in the event of a dispute.

The Terms of Employment (Information) Act 1994 provides that an employer must issue its employees with a written statement of terms and conditions relating to their employment within two months of commencing employment.

This Act applies to anyone working under a contract of employment, through an employment agency or in the service of the state.

The statement sets out terms and details of employment. Since the 4th March 2019, a statement of core terms of employment must be sent to the employee within five days of commencement of employment and this includes, name and address of employer, expected duration of contract, rate and method of calculation of pay and number of hours expected to work.

It is advisable when issuing a statement of terms or an employment contract that this should be provided together with an Employee Handbook containing additional information including any company policies. Examples of such procedures would include disciplinary procedures and IT and Social Media usage.

Contracts of Employment can be for a fixed or an indefinite period and employers should be aware of Unfair Dismissal Legislation in this respect.

In order to bring an unfair dismissal claim in Ireland, you need to have at least 12 months continuous service.

Rest breaks, maximum weekly hours and holidays

Employers should also be aware of the Organization of Working Time Act 1997 which requires employers to provide rest breaks to employees. The maximum average working week should not exceed 48 hours.

In respect of holidays, there are 9 public holidays. Holiday pay is earned against time worked. Typically full time employees would obtain 20 days holidays which they are entitled to if they work at least 1365 hours a year.

Grievance procedure

It is absolutely imperative that employers have a grievance procedure in place.

It is also advisable to have a separate policy dealing with this that can be included in the Employee Handbook annexed to the Contract of Employment.

A grievance procedure normally deals with the employers procedures in the event of a dispute between the employer and employee.

A key issue in employment cases is as to whether fair procedures have been followed by the employer in dealing with the complaint or indeed in dismissing an employee.

A grievance procedure is an important tool that an employer can use to show that a procedure was in place and that fair procedures have been followed.

Records of bullying

It is advisable that a bullying and harassment policy should be in place as this is a very common complaint made to employers.

It is important to keep records, correspondence and documents throughout the complaint procedure.

The employee must prove that the personal injury arising from the stress and bullying in the workplace was reasonably foreseeable by the employer.

Therefore, by informing the employer at an early stage of the stress and/or workplace bullying, it can be difficult for an employer to defend the case on the basis that they had no knowledge of the bullying later on during the course of the proceedings if no steps have been taken by the employer to deal with the allegations of bullying and harassment.

Safety obligations

Employers should be aware of Health and Safety obligations to employees. Employers have duties under the The Safety, Health and Welfare at Work Act 2005. There is a duty to identify hazards at work. This is normally dealt with in a written document called a risk assessment which provides an evaluation of risks and dangers attached to specific tasks.

There is an obligation to put in place a Safety Statement which is a document which sets out how the health, safety and welfare of employees is to be secured. It is important that employees are fully trained in respect of tasks they engage in and in respect of health and safety procedures. It is recommended that protective equipment is provided to employees where necessary and members of staff are first aid trained. If an accident occurs, it should be reported to the Health and Safety Authority.

It is also recommended that an accident should be reported to your insurance company as soon as possible in order that proper investigations can be carried out.

It is advisable that as an employer you hold public liability and employer’s liability insurance which will potentially covers an employer in the event a personal injury claim is bought by an employee against the employer.

If an accident occurs during the course of an employee’s work an employer may be potentially liable for the claim and by having a safety statement/risk assessments/training records in place, liability can be potentially avoided.

Seek expert advice

There are many factors to consider as an employer from an employment law perspective and this article has set out some of the key areas which you should consider. However, if you are setting up a business, it is recommended that you should get advice from a solicitor in respect of your employment law obligations and they can help you prepare the appropriate documentation including employment contracts.

Stephen Coppinger is a solicitor with Walsh & Partners, Solicitors, 17, South Mall, Cork