Posts Tagged ‘national minimum wage’

What employment changes are effective from January 2022?

Wednesday, January 5th, 2022

COVID-19 Update

Because of the large numbers of COVID 19 cases, the Government advice on testing and how to manage the close contacts situation is evolving and our advice is to continue to check our updates and also the HSA news feeds.

As of today 5th January 2022, the rules on testing is as follows:

1.If you have COVID-19 symptoms:

  • are aged between 4 and 39 then you should self-isolate immediately. You should take regular antigen tests instead of booking a PCR test. If you have a positive antigen test – then you should book a PCR test to confirm that you are COVID-19 positive. If you have repeated negative antigen tests you should still self-isolate for 48 hours after your symptoms have gone
  • if you are over 40 years old you should seek a PCR test as soon as you display symptoms of COVID-19
  • children aged 3 or under should be booked for a PCR test as soon as they display symptoms of COVID-19
  • if you are a healthcare worker then you should still book a PCR test as soon as you show any symptoms of COVID-19

2. If you have an underlying condition which puts you at higher risk of severe disease (or if you have a clinical concern) then you should contact your GP and be advised as to what is appropriate.

Claiming Covid Benefit of €350.00 per week

You can apply for the Covid-19 enhanced Illness Benefit if you:

  • Are suspected of having Covid-19 and are told by a doctor or the HSE to self-isolate or restrict your movements or
  • Are diagnosed with Covid-19.

To qualify for the payment you must:

  • Be aged between 18 and 66.
  • Have a medical certificate called a ‘Certificate of incapacity for work’ from a doctor or have a text or letter notification from the HSE to support your application.
  • Be confined to your home or a medical facility.
  • Be employed in at least one of the 4 weeks before your medical certification and have a current contract of employment, if you are an employee.
  • Have worked immediately before your medical certification and will have reckonable income in the current contribution year, if you are self-employed.

Statutory Sick Pay (SSP)

SSP is an employment right, which is due to come into effect over the next few months, where employees are entitled to claim 3 payable sick days.

Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily threshold of €110. The daily earnings threshold of €110 is based on 2019 mean weekly earnings of €786.33 and equates to an annual salary of €40,889.16.

From 2023, the number of days will rise to 5 days and 7 days in 2024, and eventually by 2025, employers will be required to cover the cost of 10 sick days per year for all employees, either part time or full time, temporary or permanent, once the employee has completed at least 6 month’s service with the employer, their eligibility is established once they can provide a medical certificate.

Once entitlement to sick pay from their employer ends, employees who need to take more time off may qualify for illness benefit from the Department of Social Protection subject to PRSI contributions. In regard to the requirement of a doctor’s cert, employers can “choose” to trust their employees and not require one but that it is “reasonable” to include it in the Statutory requirement.

More information can be found here.

National minimum wage

The National minimum wage is increased from the 1st of January by 30 cent from €10.20 to €10.50 per hour.

More information can be found here.

Tánaiste announces 30 cent increase in the National Minimum Wage to €10.50

Tuesday, December 21st, 2021

The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, has received Government approval to accept the recommendation from the Low Pay Commission to increase the National Minimum Wage to €10.50 per hour from 1 January 2022.

This represents a 30-cent increase, or just under 3%, on the current National Minimum Wage of €10.20 per hour and will see at least an estimated 135,000 people get a boost to their wages.

This increase will also mean that those working under certain conditions, under the age of 18, 19 and 20, will receive a corresponding increase in their pay, as they are entitled to a percentage of the full minimum wage rate.

The increase in the nominal minimum wage in Ireland to €10.50 will move Ireland from having the third highest nominal minimum wage rate of the 21 EU member states that have national minimum wages to having the second highest. In 2021, Ireland’s rate was 6th in the rankings, when adjusted for purchasing power standards.

More information can be found here.

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