Workplace Relations Commission 2017 Annual Report: Key Takeaways for Employers

Peninsula Team

May 15 2018

The Workplace Relations Commission (WRC) recently published its third Annual Report. Our Employment Law & HR Experts outline some key takeaways for employers from the 2017 Annual Review below... The principal functions of the WRC are to:-
  • Promote and encourage compliance with relevant employment and equality legislation;
  • Promote the improvement and maintenance of good workplace relations;
  • Provide the public with guidance in relation to compliance with codes of practice;
  • Conduct reviews and monitor developments of workplace relations in general; and
  • Provide information to the public in relation to employment legislation.
2017 Report Highlights The highlights of the 2017 annual report include:-
  • the WRC opening its first regional office in Sligo which facilitates the delivery of a range of services that were previously only available in the Dublin office;
  • adjudication hearings increasing by 24 percent from the previous year;
  • the reduction of outstanding legacy complaints to under 300 from over 1600 at the start of 2016; and
  • the development and launch of a campaign entitled “Guide to Working Life” aimed at raising awareness around basic employment rights and obligations among SME/start-up employers, employees and prospective employees more generally.
The report also highlights that while the number of inspections concluded was stable year-on-year, the WRC increased the amount recovered in unpaid wages from €1.5m in 2016 to some €1.8m in 2017. Workplace Inspections In 2017, a total of 4,747 inspections were carried out involving 99,259 employees. This represented an increase of 24,000 employees from the previous year. Out of the 4,747 inspections, some 2,032 (43%) were found to be in breach of employment legislation to some degree. The sectors showing high degrees of non-compliance were Contract Cleaning (78%), Agriculture (75%), Hair and Beauty (61%), Wholesale and Retail (61%), Food and Drink (58%) and Equine (56%). Prosecutions The WRC’s policy is to seek voluntary compliance where breaches of employment law are detected. The vast majority of cases (84% in 2017) are resolved during the inspection process, with only a very small number being prosecuted. During 2017, a total of 125 cases were closed by way of prosecutions. This represents a reduction of 11 prosecutions from the same period in 2016 where 136 cases were closed by way of prosecution. Work Permits Inspectors of the WRC are appointed as Authorised Officers to enforce the Employment Permits Acts 2003 and 2006 (EPA’s).  As well as identifying potential employment law breaches in workplaces the role of WRC inspectors includes ensuring that the information supplied in work permit applications is accurate and that the terms and conditions under which work permits are granted are being complied with. 509 successful employment permit prosecutions were made under the EPA’s in 2017. Protection of Young Persons Licences The WRC is also responsible for issuing licences under Section 3 of the Protection of Young Persons (Employment) Act, 1996. During 2017, the Division issued 509 licences covering a total of 1,282 children in relation to the protection of young persons. These licences allowed children (i.e. under 16s) to be employed in cultural, artistic, sports or advertising work which is not harmful to their safety, health, or development and did not interfere with their attendance at school. A total of 12 employers were found to be in breach of the Protection of Young Persons Act in 2017. Working with Other Agencies The WRC continued to work closely with other government agencies in 2017. A total of 867 joint investigation visits were carried out by WRC inspectors in conjunction with the Revenue Commissioners and/or the Department of Social Protection. This represented an increase of 32% from 2016. The WRC works closely with the Garda National Immigration Bureau (GNIB) and the Garda National Protective Services Unit in reporting of potential immigration and human trafficking issues encountered during inspections. This collaborative approach allows the relevant government agencies to focus on employers and sectors with high rates of non-compliance in the areas of employment rights, social protection and taxation. Conclusions The 2017 report provides some interesting statistics from an employer perspective.  While the number of completed inspections remained stable from the previous year, the WRC increased the amount recovered in unpaid wages from €1.5m in 2016 to €1.8m in 2017. Prosecution levels reduced slightly from the previous year which might be an indication of greater compliance with employment legislation by employers. Of more significance to employers is the growing use of collaborative work between the WRC and government agencies such as the Revenue which increased by 32% from 2016. The message is clear that the WRC together with other government agencies will continue to vigilantly monitor employers to identify any breaches of employment law. If you have any questions regarding the Workplace Relations Commission 2017 Annual Report and what it means for employers, please don’t hesitate to contact our 24 Hour Advice Service on 0818 923 923

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