Labour inspectors recover over €3 million in workers’ arrears

In 2008, labour inspectors from the newly established National Employment Rights Authority (NERA) carried out a total of 27,900 calls, interviews and inspections. As a result, NERA recovered arrears due to employees totalling over €3 million. Meanwhile, work is underway on implementing the Employment Law Compliance Bill, published in March 2008, which aims to improve compliance with employment legislation and would grant NERA a full statutory footing.

The [Review of 2008 (1.4Mb PDF)](http://www.employmentrights.ie/en/media/NERA Review of 2008.pdf) by the National Employment Rights Authority (NERA), published in early February 2009, showed that its inspectors detected 4,629 breaches of employment law in 2008, compared with 2,344 such breaches in 2007. In total, NERA carried out 27,900 calls, interviews and inspections at employers’ premises – an increase of 96% compared with 2007.

Sectors with highest breaches and arrears recovered

The majority of breaches of employment law were uncovered in the contract cleaning sector, where 85% of companies inspected were found to be violating employment legislation. High levels of breaches were also detected in hotels, restaurants and catering, as well as construction.

The highest level of arrears was recovered in the construction sector, where €710,475 in arrears due to employees was recovered. In the hotels, restaurants and catering sector, some €682,239 in arrears was recovered.

Employment legislation breached

Overall, 45% of companies inspected in relation to the Organisation of Working Time Act were found to be in breach of the legislation. In this regard, €54,418 in arrears was recovered. Moreover, a further €387,058 was recovered in arrears due to breaches of the National Minimum Wage legislation.

NERA also brought proceedings for the purposes of enforcing certain awards of both the Labour Court and the Employment Appeals Tribunal. In this respect, a total of 46 cases were concluded in 2008, involving arrears amounting to €74,970. This compares with 52 cases in 2007.

Other practices and problems found by NERA

According to NERA’s Director, Ger Deering, some of the more serious employer practices uncovered and problems encountered by NERA included:

• not keeping any records in relation to an employee or employees, or failing to produce any records for inspection;

• falsifying records including payslips and timesheets;

• requiring employees to work in excess of the legal limit;

• paying employees for significantly fewer hours than the hours actually worked;

• paying employees less than their legal entitlement;

• not providing employees with payslips;

• making unlawful deductions from employees’ wages.

NERA to receive full statutory footing

Commenting on the results for 2008, the Minister for Labour Affairs, Billy Kelleher, stated that employment law is an integral part of the business environment and that the Employment Law Compliance Bill currently being debated in the Irish parliament (Dáil Éireann) would grant NERA a full statutory footing.

Minister Kelleher stated:

While recognising the economic challenges that exist for all businesses and the importance of retaining jobs, compliance with employment law is not something deliberately designed to be onerous on employers – it is about ensuring that there is a level playing field whereby responsible employers who give workers their full legal entitlements do not face even greater challenges because some competitors are prepared to short-change employees on their rights.

Views of NERA

The Director of NERA, Mr Deering, warned that it is unacceptable for employers to take advantage of their employees by not paying the legal minimum rates of pay, regardless of the economic climate.

Mr Deering emphasised:

Whilst most employers are committed to complying with employment law and cooperate with NERA, we have encountered a number of employers where very serious breaches are evident or where employers refuse to cooperate.

Aware of criticism from some employer groups and commentators, Mr Deering continued:

Some are of the opinion that employers should not be required to pay the legal minimum rates to their employees due to the changed economic climate. Are we really suggesting that withholding money that is legally due to those on minimum rates of pay is a sustainable or legitimate way to run a business? The money recovered by NERA represents real money in people’s pockets and can make a huge difference to lower paid workers. It simply is not acceptable under any circumstances for employers to take advantage of their employees in this manner.

Employment Law Compliance Bill

Meanwhile, work is underway on the implementation of the Employment Law Compliance Bill, designed to give effect to the commitment of the social partners in the [Towards 2016 (2.86Mb PDF)](http://www.taoiseach.gov.ie/attached_files/Pdf files/Towards2016PartnershipAgreement.pdf) social partnership agreement to improve compliance with employment legislation. The bill was published in March 2008.

The Irish Business and Employers’ Confederation (IBEC) has since demanded the removal of a range of criminal offences and other ‘excessive’ obligations in the Employment Law Compliance Bill, which it argues were not agreed under Towards 2016. Moreover, in its economic recovery document, There is a better, fairer way (88Kb MS Word doc), the Irish Congress of Trade Unions (ICTU) called on the government to quickly enact a programme of legislation to protect the rights of all workers as agreed under Towards 2016.

Brian Sheehan, IRN Publishing