Posts Tagged ‘minimum wage’

Legal updates – Minimum Wage

Monday, January 22nd, 2018

With effect from 1st January 2018 there is a new Minimum Wage. The National Minimum Wage Order 2017 means the minimum hourly rate for an audit has increased by 3.2% to €9.55 per hour.

Overall, it means that the minimum wage in Ireland has increased by 10.5% since 2015 – when the minimum wage was €8.65 per hour and comes on foot of the recommendations from the Low Pay Commission (a statutory body set up in 2015 to make recommendations on the rate of the minimum wage annually).

It is estimated that about 10% of employees in Ireland are on the minimum wage (about 155,000 people).
Minimum Wage

Note: each one-third period must be at least one month and no more than one year

Key Trends and Challenges for HR for 2017 and Beyond

Tuesday, January 24th, 2017

As we embark on a new year we know that 2017 is going to be as interesting and exciting as 2016 was! In this article, we will provide you with an overview of the key trends and challenges in HR for 2017 and beyond, including highlighting some forthcoming legislative changes to watch out for.

National Minimum Wage Increase

With effect from 1 January 2017, the national minimum wage for an experienced adult employee was increased to from €9.15 to €9.25 per hour.

The national minimum wage applies to all employees, including full-time, part-time, temporary and casual employees, except the following categories of employees who are excluded from its provisions:

  • close relatives of the employer, such as a spouse, father, mother, son, daughter, brother and sister;
  • apprentices within the meaning of the Industrial Training Act 1967 and Labour Services Act 1987.

An experienced adult employee, for the purposes of the National Minimum Wage Act, is an employee who has an employment of any kind, in any 2 years, over the age of 18.

The following is a table detailing the national minimum wage for experienced adult employees and the sub-minimum rates for young people and certain trainees:

Category Minimum hourly rate of pay % of minimum wage
Experienced adult worker €9.25 100%
Aged under 18 €6.48 70%
First year from date of first employment aged over 18 €7.40 80%
Second year from date of first employment aged over 18 €8.33 90%
Employee aged over 18, in structured training during working hours:

·         1st one third period

·         2nd one third period

·         3rd one third period

 

 

€6.94

€7.40

€8.33

 

 

75%

80%

90%

Note: each one third period must be at least one month and no more than one year.

Employers need to be very aware of their obligation to pay the National Minimum Wage. During 2016 the Workplace Relations Commission investigated a large number of cases of underpayment of the National Minimum Wage. It is important to note that a claim under the National Minimum Wage Act can go back 6 years. It is also possible for the employee to bring claims under the Organisation of Working Time Act in respect of holiday pay and public holiday pay.

 Family Leave Bill

The government is drafting a Bill which will consolidate, with amendments, all existing family leave legislation including maternity, parental, adoptive and carers’ leave.

In early 2016, the Department of Justice, Equality and Law Reform invited stakeholder groups to make submissions to participate in and respond to the framing of the proposed legislation. Given the timescales, the resulting legislation will potentially be introduced during 2017.

 Employee Share Schemes

Following the recent public consultation on the issue of share-based remuneration, Minister Michael Noonan announced, as part of Budget 2017, his intention to develop a new, SME-focused, share-based incentive scheme which would be introduced in Budget 2018. The introduction of any such incentive will be subject to it having received approval from the European Commission under state aid rules. Any resulting initiative will be welcome as employee share incentive schemes are an effective way of offering tax savings to employees, encouraging employee participation and retaining staff.

 Post-Brexit Opportunities and Challenges for Ireland

In a historic referendum on 23 June 2016, the UK voted to leave the EU. Since then, many have been wondering what the impact of Brexit will be for Ireland. One of the major upsides for Ireland in 2017 will be the opportunity for jobs growth as more organisations look to set up European hubs in Ireland.

For Irish businesses that are exporting to the UK, exchange rate volatility will be their key immediate challenge. Since the Brexit referendum result Sterling has fallen by 18% against the Euro. This fall in Sterling will increase the cost of Irish exports to the UK and will mean increased competition in the form of British imports.

General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) will come into force on the 25th May 2018, replacing the existing data protection framework under the EU Data Protection Directive. The GDPR introduces significant changes to European data protection law, in particular severe financial penalties for non-compliance. It is important that companies start preparing in 2017 for the introduction of these new rules. The Office of the Data Protection Commissioner has issued useful guidance on how to prepare for the GDPR and the document can be viewed here.

Get advice on Employment & Labour Laws in Ireland. Contact us now at 01-5252914 for any advice.

Margaret McCarthy, HR Consultant

Employment Law Update 2016

Monday, December 5th, 2016

As 2016 draws to a close, we look back at the last 12 months and share with you our review of some of the key employment law changes of the year.

National Minimum Wage Increase

With effect from 1 January 2016, the National Minimum Wage was increased from €8.65 per hour to €9.15 per hour. This increase was made following a recommendation from the Low Pay Commission (LPC) in 2015. The LPC was established as an independent statutory body in July 2015. Its primary function is to examine and make recommendations annually to the Government on the appropriate level of the NMW.

In January 2017, the minimum wage rate will rise to €9.25 per hour.

Justification of Retirement Age

The Equality (Miscellaneous Provisions) Act 2015 has introduced significant changes to retirement ages. Prior to the commencement of the Act (1 January 2016), the Employment Equality Acts 1998 – 2015 provided an employer with the ability to fix a compulsory retirement age, as set out in Section 34 of the Acts. This remains the case however, Section 34 of the act has been amended to align it with the Employment Equality Framework Directive 2000/78/EC. Therefore, employers are now required to be able to objectively justify their retirement age. The retirement age should seek to achieve a legitimate aim such as intergenerational fairness, and the means of achieving the aim should be both appropriate and necessary.

Furthermore, the amendment to s.6 of the 1998 Act means that employers must now objectively justify offering a fixed-term contract of employment to a person who has reached the organisation’s retirement age.

Criminal Justice (Spent Convictions and Certain Disclosures) Act 2016

Under the Criminal Justice (Spent Convictions and Certain Disclosures) Act 2016, which came into effect on 29 April 2016, specified minor convictions will become spent after 7 years. This means that an adult convicted of an offence covered by the Act does not have to disclose the conviction (to a prospective employer for example) after 7 years, except in certain circumstances. The Act does not apply to any sexual offence, an offence that was tried in the Central Criminal Court, or an offence resulting in a prison sentence of greater than 12 months.

In the recruitment process many employers have required applicants to declare any previous convictions on their application forms. This Act will now restrict employers from asking for such declarations and employees cannot be penalised for non – declaration of spent convictions.

Paternity Leave

The Paternity Leave and Benefit Act 2016 commenced on 1 September 2016. The Act enables a “relevant parent” to take two weeks’ paternity leave which must commence within the first 26 weeks of the birth/adoption of a child. Subject to eligibility and notification criteria being met, paternity leave will apply to births/placements that take place on or after the 1 September 2016. During paternity leave, employees who have the necessary PRSI contributions and hold a Public Services Card are entitled to paternity benefit from the Department of Social Protection (€230 per week).

Get advice on Employment & Labour Laws in Ireland. Contact us now at 01-5252914 for your Paternity Leave policy or any other advice.

Margaret McCarthy, HR Consultant