NERA Quarterly Review January to June 2012

Introduction

The recent publication of the National Employment Review Authority’s quarterly review should cause more than a few employers to sit up and take note of the comings and goings of Ireland’s employment law watchdog. The review covered NERA’s activities from January to June 2012. As a matter of reference, NERA is an Office of the Department of Job, Enterprise and Innovation and its aim is to secure compliance with employment rights legislation in Ireland through the five main functions of Information, Inspection, Enforcement, Prosecution and the Protection of Young Persons.

1.         Information

From January to June 2012, the NERA call centre provided information to over 33,908 people, which was a big decrease of 42% when compared with the equivalent 2011 figure of 58,514. The primary reason for this drop is due to the transfer of redundancy claims calls to the Department of Social Protection at the end 2011).

Employees and former employees accounted for 76% of all callers, while an estimated 16% were employers. Redundancy, working hours, terms of employment, payment of wages and unfair dismissal represented the highest categories of queries dealt with.

In respect of information provision, NERA took the unusual step of providing specific information in their review on working time records and tachographs. In the review , NERA noted that details relating to employees' hours of work must be kept in the manner prescribed by S.I. 473 of 2001. This outlines the records of working hours required to be kept under the Organisation of Work Time Act, 1997 and that it requires an employer to keep an OWT 1 form or a form to substantially like effect where there is no clocking facility in place for employees. The review went on to note specifically that “Transport companies should note that these records are required to be kept in addition to tachographs” as “tachographs do not record the level of detail required to demonstrate compliance with the Organisation of Work Time Act, 1997.” The fact that this issue was specifically addressed shows that it is a common issue within the transport issues and employers who operate with tachographs should ensure that they are meeting their obligations in respect of recording employee working time.

2.         Inspections

In the period from January to June 2012, NERA carried out a total of 2,250 inspection involving almost 33,000 employees. This actually represented a drop from the same period in 2011 where there were 2,359 completed inspections. Following on from this year’s inspections NERA recovered €426,818 in unpaid wages for employees, compared to €1,066,631 in 2011.

In respect of Employment Permits, 240 employers were found to be in breach of the Employment Permits Acts with 496 persons detected working without legal authorisation (i.e. working without an appropriate permit).

3.         Enforcement of EAT/Labour Court Orders:

In the review period, twenty seven new cases were opened and 31 cases were concluded. 95 such cases were on hand at the end of June 2012.

4.         Prosecutions

As of June 2012, NERA had referred 45 cases for prosecution which is a slight increase to the 42 referrals in 2011. In respect of cases that had gone to prosecution during that period, NERA secured 31 employer convictions were resulting in fines of €77,400 being imposed and arrears of wages of over €32,800 being awarded to employees.

5.         Protection of Young Persons

92 licences, allowing children (i.e. under 16s) to be employed in cultural, artistic, sports or advertising work, were issued in the review period in respect of 196 children working in the arts/TV/film industry.

Summary of Inspections and Breaches Detected by Industry Sector – January to June 2012:

Summary of Inspections and Breaches by Employment Legislation – January to June 2012:

Employers should seek advice from Peninsula Business Services when faced with a potential NERA inspection or if they have any queries on the information outlined above. Please phone the 24 Hour Advice Service on 01 8555050 and one of our experienced advisors will be happy to assist.