An Employers Guide to the Organisation of Working Time Act Part 1

Peninsula Team

September 26 2012

The Organisation of Working Time Act, 1997, (OWTA) was established as protective legislation for all employees whether in full time or part time employment, under a contract of employment or apprenticeship or employed through an agency. Our two part guide will help you deal with the most prevalent problems, that as an employer you may deal with on a daily basis. It is important for employers to adhere to the legislation not only from a legal prospective but also to ensure employees have the appropriate rest time to be able to perform their daily duties safely and to the standard your organisation has set. There are many elements to the act and in our two part guide we will draw your attention to the most notable areas that employers face on a day to day basis. Maximum Hours An important aspect of the OWTA is the maximum hours that an employee is permitted to work each week. Under the legislation employees are not permitted to work more than 48 hours in a seven day period averaged over four months. It can be more difficult to manage this in corporate environments, where employees are inclined stay late after work and can subsequently build up a lot of overtime or time in lieu, this is why Managers have to identify and record hours worked to ensure employees are not exceeding the maximum working week. In Ireland, along with the UK, we have the unique distinction of being in the highest bracket for maximum working hours, with 48 hours per week (on average). This is compared to the lowest bracket such as Belgium with their maximum hours at just 38 hours per week. We also have the one of the highest working weekly hours in the EU averaging at 39 hours per week compared to France with lowest at 35.6 average working hours per week. Rest Breaks One of the most common questions employers have about the OWTA is rest breaks. It is important to remember that employees are entitled to a break of at least 15 minutes in any work period exceeding 4.5 hours and at least a 30 minute break in any work period exceeding 6 hours (which can be inclusive of the first 15 minute break). Employees cannot substitute rest breaks for leaving work early, a tribunal will not see this as a justifiable rest period and as such it is the employer’s responsibility to ensure adequate rest breaks are taken. All employees should, in addition to daily rest periods, have a weekly rest period of one full day off, which is a consecutive rest period of 24 hours in a seven day period. This can be tricky for retail industries as they are often a 24 hours operation, and as such employers have to be strategic when planning out rosters for their employees to ensure they can have staff to cover on short notice without being in breach of the working time provisions.  Employees should also get a rest period of no less than 11 hours between shifts in each 24 hour period. Sunday Working Sunday working time is another common area of concern from employers as Sunday work carries with it a premium payment for hours worked. An employee who is required to work on a Sunday will be entitled to receive a premium payment for the hours worked or be granted paid time off from work by way of compensation. If an employer wished they could also look at giving combination of the two. Annual Leave Calculating an employee’s holiday entitlement can be problematic and confusing for many employers and as such can be a cause of concern for many. Firstly it is important to note that all employees are entitled to paid holidays based on the hours they work, and the statutory entitlement for Annual Leave in Ireland is four working weeks. There are three main methods for calculating an employee’s holiday entitlements. 1.    Four working weeks in a leave year in which the employee works at least 1,365 hours (used for Full-time employees) 2.    1/3 of a working week per calendar month that the employee works at least 117 hours (used for an employee missing part of the leave year) 3.    8% of the hours an employee works in a leave year (used for part-time employees) Where all three methods are applicable the employee is entitled to the greater amount of leave. When we compare ourselves to the rest of the EU, Ireland has a relatively low average of annual leave entitlements, compared to Denmark with 24 days per year and Germany with an average of 30 days per year. Public Holidays The OWTA also looks at the matter of Public Holidays for employees, and there are nine public holidays in Ireland; New Year’s day, St. Patrick’s day, Easter Monday, first Monday in May/June/August, last Monday in October, Christmas day and St. Stephen’s day. All full time employees are entitled to public holiday benefit immediately, however part-time workers must have worked 40 hours in the five weeks ending on the day before the public holiday. In relation to payment for the day if it is a day not worked by the employee, it is the decision of the employer as to whether to give a paid day off, paid day off within a month of that day, additional day of annual leave or an additional days pay. If it is a day the employee must work then in addition to payment for the hours worked they would get one of the above as decided by the employer. The OWTA is a comprehensive piece of legislation which governs many of the day to day matters surrounding employment. We have covered some of the primary matters in this guide, and be sure to follow on next month for part two. In the interim if you have any queries in relation to annual leave, rest periods or the Organisation of Working Time Act, 1997, please contact the Advice Service on 01 855 5050 and speak to one of our advisors.

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