A farmer was telling us at our recent discussion group that he had an inspection from the Workplace Relations Commission (WRC), and it put the wind up a lot of us. We are employing people, but we don’t necessarily have proper paperwork in place.

I have a few staff that have been with me a while. Do I need to have contracts of employment for them?

If so, what do I need to put in it to keep me right should I have an inspection?

Answer: The Workplace Relations Commission (WRC) is responsible for carrying out inspections in workplaces. The reasons a business can be inspected include:

• To investigate a specific complaint.

• As part of a random/targeted inspection in a particular sector of employment.

• As part of routine inspections.

Usually, you will be told beforehand. In certain situations, the inspector may call without advance notice e.g. out of hours inspections to ensure young people are not working outside the hours allowed.

Inspectors have fairly extensive powers including the right to enter the premises at reasonable times, interview employers and employees, take statements, and examine and take copies of records.

If an initial inspection of records finds that you have breached employment law, the WRC can issue a letter asking you to correct this, carry out a further inspection or refer the matter to legal services for prosecution. Inspectors can work in joint investigation units with Revenue and the Department of Employment Affairs and Social Protection. They can also exchange information between these bodies.

If the WRC finds a breach of employment law, they have a number of options. These include:

• Sending a compliance notice to fix the issue. On top of this, employees can take action against an employer for breaches of employment law. You can still be prosecuted for the offence under employment law.

• Fine you with a fixed penalty notice for up to €2,000 for certain offences.

• Prosecution.

What an employer needs

A list of the records needed will normally be in the appointment letter. A hard copy of the WRC employee details form will be enclosed with the appointment letter and will need to be filled out and available for the inspection.

An employer is required to retain records for a period of three years. In general, the inspector starts the inspection by examining a sample of original records relating to a period of one year prior to the inspection date and can go back, if required. These can include:

• Employers’ registration number with the Revenue Commissioners.

• A list of all employees: full names, addresses, and PPS numbers.

• Dates of commencement and dates of termination of employment.

• Written terms of employment for each of the employees.

• Employee’s job classification.

• A record of annual leave and public holidays taken by each employee.

• Hours of work for each employee.

• Payroll details: gross to net, rate per hour, overtime, deductions, etc.

• Employees payslips.

• A register of any employees under 18.

Much of the financial side can be provided for under payroll software packages, which cost about €200 per year. On the legal side, it is worth engaging a solicitor or HR firm to draft a template. The IFA has partnered with a HR firm that offers an employment service at €450 per year.

Contracts of employment

If you pay an employee a regular wage or salary, you automatically have a ‘contract of employment’ with them. Legally, you do not have to have their whole contract in writing.

However, you must give them a ‘written statement of terms of employment’ within the first five days of starting a job. This written statement must include the core terms of employment (such as how pay is calculated, the full name of the employer and employee, the address of the employer, the date employment started, job title, expected duration, and terms and conditions relating to hours of work – including overtime etc).

Within one month of starting the job, you must give your employees the remaining terms of their employment in writing (such as their entitlement to annual leave, sick pay, pension and pension scheme, periods of notice to be given, etc). Employers must also have written grievance and disciplinary procedures, detailing procedures to be followed before dismissal.

Disclaimer: The information in this article is intended as a general guide only. While every care is taken to ensure accuracy of information contained in this article, Aisling Meehan Agricultural Solicitors and Tax Consultants does not accept responsibility for errors or omissions howsoever arising.