Legal obligations apply to all employers, regardless of whether one person or many people are employed full-time, part-time, seasonally, or on a fixed contract. Employers must be aware of these to ensure they reduce the risk of non-compliance, which can be a painful and expensive process.

This four-part series on employment law will help address these issues and highlight new legislative changes all employers, including farmers, must implement to avoid a fine or prosecution.

Mary McDonagh, head of HR and payroll services at ifac, believes that compliance facilitates good communication from the outset.

“An employer who invests time and energy into delivering clear lines of communication will rapidly build trust among employees, increasing productivity, output and morale,” she says.

New legislation

It is essential for all employers to stay up to date with new legislation. Recent changes to employment law can be seen in areas of probationary periods, terms and conditions, sick pay and mandatory training in limited cases.

The European Union (transparent and predictable working conditions) regulations 2022 became law on 16 December 2022. Legislative changes arising from the 2022 regulations include the following:

  • A six-month maximum duration of probationary periods (with some exceptions).
  • Employers may not prohibit employees from taking up work with another employer which falls outside the work schedule (with some exceptions).
  • The introduction of an employee’s right to request more predictable and secure working conditions.
  • Limitations on the use and duration of on-demand or similar employment contracts (which are already very restricted in Ireland).
  • An employer must issue an employee with a written statement of core terms relating to their employment within five days. All other terms and conditions are required to be given within one month of commencement of employment.
  • A possibility for an employee with at least 26 weeks’ service to request a transition to a more predictable and secure form of employment.
  • A right to mandatory training without cost, where applicable.
  • “It is best practice to issue a detailed contract of employment before an employee starts work or on their first day. This will ensure that you comply with timelines and have terms and conditions set down in legislation,” advises Mary

    Sick Pay Act 2022

    The sick pay act provides a legal obligation for employers to pay employees for sick leave. ?From 1 January 2023, eligible employees are entitled to three days of statutory sick pay (SSP). This will be phased in over the next few years increasing to 10 days by 2026.

    To qualify for SSP an employee must have worked for their employer for at least 13 weeks and obtained a medical certificate confirming that they are unfit to work. Sick pay is calculated at the rate of 70% of an employee’s wage, up to a daily maximum threshold of €110.

    Contract of employment

    Besides being a legal requirement, protecting your business is an important reason for carrying out employment obligations. A contract provides transparency and formalises the relationship between employee and employer, which is essential in the event that something goes wrong.

    “A well-written employment contract establishes the rules of engagement and expectations and sets boundaries. It also sends a message of respect for the employee and their rights,” explains Mary.

    For peace of mind, it is advisable to check that you are complying with your on-farm employer obligations and, if in doubt, seek the necessary advice from your accountant if they provide HR support.

    Mary McDonagh, head of HR and payroll services in IFAC

    WRC inspections

    The overall objective of the Workplace Relations Commission (WRC) is to deliver a workplace relations service? and employment rights framework for employers and employees.

    Every year, the WRC inspects businesses around the country to ensure employers are meeting their legal obligations. According to their annual report, more than 4,432 inspections took place in 2021 and over 60% of these visits were unannounced. Employers should carry out regular compliance checks to ensure all contracts and mandatory documents are in place. Non-compliance may result in fines and/or criminal convictions.

    Compliance checklist

    Below is a non-exhaustive checklist to help you keep up with Irish employment law:

  • Terms of employment (contract of employment): You must give your employees a copy of your core terms within five days of employment. The remaining terms must be issued within one month.
  • You must also give employees a copy of your grievance and disciplinary procedures within 28 days of their employment.
  • Payslips: all employees are entitled by law to a written statement of salary.
  • Working records: this includes days worked, start and finish times, and breaks taken.
  • Annual leave records: annual leave (also called holidays from work) is paid time off work. All employees accrue annual leave based on hours worked.
  • Bank holiday records: full-time and part-time employees are entitled to bank holiday hours depending on worked hours.
  • Minimum wage payment: from 1 January 2023, the minimum wage is €11.30 per hour (there are some exemptions).
  • Register of employees under 18 and poster displayed: this only applies if you have employees under the age of 18.
  • Valid employment permits: this only applies if you have any employees from outside the EEA (European Economic Area).
  • Employment legislation is ever-changing. Therefore, contracts of employment issued to an employee in the past may need to be updated to incorporate such changes.

    What are the maximum hours an employee can work?

    The maximum number of hours that an adult employee can work in an average working week is 48 hours. This does not mean that a working week can never exceed 48 hours, it is the average that is important. Averaging may be calculated over a four-month, six-month of 12-month period depending on the circumstances.

    The 48 hours of work do not include time spent on annual, sick, maternity, adoptive, or parental leave. This does not apply to family employees working on farms.

    Coming up

    Over the next three weeks, we are going

    to cover the following topics:

    1. Record keeping.

    2. Budgeting for payroll.

    3. Attracting and retaining employees.

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