Employment Law Compliance Bill 2008: What it means for employers?
The Government has introduced a major new piece of legislation in the Employment Law Compliance Bill, which was published on the 18th of March 2008. The Bill is shortly going to become Law. The purpose of the Bill is to achieve high levels of compliance with employment law in Ireland with emphasis on protecting lower paid employees.
The key measures provided in the Bill are as follows
- The establishment of the National Employment Rights Authority (NERA) on a Statutory basis.
- Enhanced powers for authorised Officers of NERA which includes powers of entry, inspection, examination and investigation of alleged offences under the Act.
- Enpowering Labour Inspectors to examine employment permits and to prosecute offences and to conduct investigations jointly with other agencies including Social Welfare Inspectors, Revenue Commissioners and An Garda Siochana.
- Statutory employment records to be kept by Employer in respect of Employees for the previous three years and for two years after an Employee leaves their employment.
- An obligation to display clearly worded notices in work places advising employees of their employment law entitlements and how to seek redress for denial of their rights under the Act.
- Provisions for greater penalties for offences arising under employment law- In most cases up to €5,000 and/ or 12 months imprisonment for summary offences and €250,000 and /or 3 years imprisonment for indictable offences.
- Increasing the number of Labour Inspectors up to 90 Inspectors.
- Strengthening the powers of the Minister for Enterprise, Trade and Employment to initiate investigations and publish the outcomes in cases of public interest.
Essentially, the legislation will mean more rigorous enforcement of existing employment laws, such as the national minimum wage, registered employment agreements, work permits and the protection of young persons in employment.
Given the high level of penalties and other proposals in the Bill, it is crucial that all employers ensure that they are fully compliant with all aspects of Employment Law by maintaining up to date and comprehensive records for each employee. The Bill will also require Employers to carry out detailed audits of their record management and document retention systems so that full compliance can be proven in the event that an inspection takes place. A number of businesses in Kildare/ Carlow area have already been visited by Labour Inspectors and therefore it is crucial that employers are fully aware of their obligations when the Bill becomes law.
Liam Moloney BCL (Diploma in Employment Law) is Principal of the firm of Moloney & Co Solicitors of Unit 5, Lawlor’s Commerical Centre, Naas, Co. Kildare which firm specialises in the area of Employment Law.
If any of the above matters affect your business you can email liammoloney@moloneysolicitors.ie
