Monday, 6th November 2017

HR Topics

Parental Leave in Ireland

Parental LeaveEmployees in Ireland are entitled to avail of Parental Leave when they become a parent. This Leave is for the sole purpose of taking care of the child in respect of whom the Leave is being taken. This Leave is different to Maternity/Paternity Leave.

 

 

The employer has the right to cancel the Leave if he or she discovers that the Leave is being used for another purpose.

 

Parental Leave applies to all employees who have completed 12 months' continuous service.

However, if a child is approaching the age threshold (described below) and the employee has accrued at least 3 months’ service then he or she will be entitled to the Leave on a pro-rata basis.

Both parents have an equal separate entitlement to Parental Leave and are encouraged to avail of their own entitlement. Where both parents work for the same employer, the employer may agree to transfer one parent’s Leave to the other parent. The employer is in no way obliged to agree to this.

 

 

 

The allowance increased from 14 to 18 weeks per child in March 2013. If an employee has more than one child, except in cases of multiple births (twins etc.), Parental Leave is limited to 18 weeks in any 12 month period. If the employer agrees, however, more weeks per year can be allowed.

 

 

The 18 weeks per child may be taken in one continuous period or in separate blocks of a minimum of 6 weeks at a time. There must be a gap of at least 10 weeks between two periods of Parental Leave per child. If the employer agrees, the employee can take Leave in a different pattern. This, for instance, could consist of single days at a time or even hours. This can often work out better for the business, however, it can be complicated to keep track of.

Separating the Parental Leave entitlements in to shorter periods of days/hours can be agreed on an individual basis – this is at the discretion of the employer and is based on the operational needs of the business - there is absolutely no obligation on the employer to agree to shorter periods.

 

 

Parental Leave

 

Many employees take one day per week for the duration of their Leave – In this instance, if the employee normally works a 5 day week, the employee would be entitled to work 4 days per week for 90 weeks.

 


The employer must maintain detailed records of all Parental Leave as it is used. Employers must keep these details for 8 years.

 


The Leave must be taken before the child reaches 8 years of age. Exceptions apply in the case of children who are adopted between the ages of 6 and 8 – Leave in this instance may be taken up to 2 years after the date of the adoption order. Similarly, exceptions to the age threshold are made where a child has a disability – Leave may be taken in respect of children with disabilities up to the age of 16. Where illness or other incapacity prevented the employee taking the Leave within the normal period exceptional allowances may be made.

 

 

Parental Leave applicants must write to their Manager requesting the Leave 6 weeks before the expected commencement date.

 

 

Where Parental Leave is approved by the employer a Parental Leave Agreement should be drawn up.

 

 

Parental Leave remains as being unpaid Leave from employment. However, employers should be aware that employees retain their right to accumulate Annual Leave while on Parental Leave and also employees retain their entitlements for Public Holidays while on Parental Leave. There will be a loss of pension contributions, where relevant. The employee's PRSI contributions will be protected during Parental Leave. The employee will then get credited PRSI contributions for this time.

 

 

An employer may postpone a Parental Leave application for up to 6 months (this must be done before the confirmation document is signed). If the Leave would have a substantial, adverse effect on the operation of the business the employer would have grounds to postpone the requested Leave. Postponement due to a lack of cover/due to the fact that other employees are already on Parental Leave would be justified. Normally, only one postponement is allowed.

 

 

The employee is entitled to return to their job after Parental Leave, unless it is not reasonably practicable for the employer to allow them to return to their old job. In this case, the employee must be offered a suitable alternative on terms no less favourable than the previous job, including any improvement in pay or other conditions, which occurred while the employee was on Parental Leave.

 

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Bullying prevalent in Irish workplaces according to recent survey

BullyingThe results of a recent Europe-wide survey, which were reported on in TheJournal.ie’s article Irish workplaces among worst in Europe for bullying, highlighted worrying levels of bullying within companies in Ireland. According to the survey, Ireland is the 7th worst country in Europe when it comes to workplace bullying with a significant 6% of employees claiming to experience it.

 

Tom O’Driscoll, SIPTU’s Head of Legal Affairs, explained that “It can be physical abuse but it’s usually abusive name-calling, putting undue pressure on people, singling people out, commenting on their performance…” etc.

Bullying in the workplace is any recurring inappropriate conduct that undermines a person’s right to dignity at work. Bullying can be carried out by one person or by several people - it is aimed at an individual or a group where the objective is to make them feel inferior or victimised. Bullying can come in the form of a verbal or physical assault and can also take place over the internet – this is known as cyber bullying and can be performed via many methods - Mobile phones, social networking sites, emails and texts are all common vehicles for cyber bullying. Cyber bullying is becoming more and more prevalent in society.

Keep in mind that harassment based on civil status, family status, sexual orientation, religion, age, race, nationality or ethnic origin, disability or membership of the Traveller community is considered discrimination.

Harassment in the workplace is prohibited under the terms of the Employment Equality Acts. The Act of harassment - whether direct or indirect, intentional or unintentional - is unacceptable and should not be tolerated by any company.   Any allegations should be dealt with seriously, promptly and confidentially with a thorough and immediate investigation. Any acts of harassment should be subject to disciplinary action up to and including dismissal.  Any victimisation of an employee for reporting an incident, or assisting with an investigation of alleged harassment and/or bullying is a breach of Equality Legislation and should also be subject to disciplinary action.

Dignity at work

 

Bullying or harassment isn’t always obvious – in fact it can come in many shapes and forms – some examples are:

•Social exclusion or isolation                                                                                                                                             

•Damaging someone’s reputation through gossip or rumour                                                                                               

•Any form of intimidation                                                                                                                                                 

•Aggressive or obscene language or behaviour                                                                                                            

•Repeated requests for unreasonable tasks to be carried out

Employers - Did you know that you can be held accountable for bullying or harassment in the workplace?

……..Not being aware of it does not get you off the hook!

Under current Irish Employment Legislation (The Employment Equality Acts 1998-2011) companies are accountable when it comes to bullying and harassment in the workplace. It is vital for employers to be mindful of the legislation as companies are answerable for the actions of employees, suppliers and customers even in cases where the company is not aware that bullying or harassment is taking place.

To defend itself; a company must illustrate how it did everything reasonably practicable to prevent bullying and/or harassment from taking place in the workplace. The company must also show that when an instance of bullying or harassment occurred the company took immediate, fair and decisive action.

 

Dignity at work

 

There is a huge risk of exposure if companies do not adhere to the strict Regulations. Those found in violation of the Act may be liable for fines and in severe circumstances imprisonment on summary conviction. Companies can also end up paying out large sums in compensation.

Sample award – In June 2013, a fast food company in Blackpool, Cork was forced to pay €15,000 after two employees were subjected to sexual harassment by another employee. 

An Equality Tribunal ruling found that a lesbian couple, who both worked for the restaurant in Cork, were forced to endure obscene remarks and queries about their relationship and sexuality from another employee at the branch.

The Tribunal found that management at the restaurant failed in their duty to take the appropriate steps to protect the women. They failed in their responsibilities to their employees and consequently were instructed to pay €15,000 to the couple.  

Compensation

 

Under Irish Employment Legislation it is the duty of the employer to provide a workplace that is safe for lesbian women and gay men to be open about their sexuality.  

This is something that all employers need to pay close attention to. 

Bullying creates a very hostile work environment and can negatively affect employee performance – It can lead to disengagement and low levels of morale. It can also cause a company to lose key members of staff. Bullying can affect both the safety and the health of employees – this violates the Safety, Health and Welfare at Work Act 2005.

It is abundantly clear that it is in the best interest of all stakeholders to prevent bullying or harassment of any form in the workplace.

Employers need to be vigilant and need to make more of an effort to consciously crack down on this type of activity.

In order to avoid bullying and harassment an employer should include harassment-related policies and procedures in the Employee Handbook – A Dignity at Work Policy should be communicated clearly to employees. This will clarify what is expected of employees and what the protocol/repercussions are if bullying/harassment does occur.

The Europe-wide survey found that females between the ages of 30 and 49 are most likely to be bullied at work. Males between the ages of 15 and 29 are the second most likely group to experience bullying.  Women in the same age group are most likely to experience sexual harassment.

Bullying in the workplace

In December 2013 the Immigrant Council of Ireland (ICI) brought our attention to a shocking statistic when it revealed that the number of racist incidents reported in Ireland in the first 11 months of 2013 had jumped 85% on the same period in 2012. The racism reported related to alleged discrimination, written harassment, verbal harassment and physical violence. A massive 20% of the reported incidents of racism occurred in the workplace.

Racist Incidents

 

 

 

       

             The area of workplace bullying clearly requires immediate attention in Ireland.

 

 

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What employers need to know about Work Permits

Employers, as you may be aware, the National Employment Right’s Authority (NERA) conducts thousands of inspections (many of which are unannounced) annually. It is within NERA’s remit to investigate your compliance with Irish Immigration and Employment Permit legislation.

NERA 

 

Did you know that employers could be seriously penalised for employing individuals who do not have valid employment permits?

 

•             The Employment Permits Acts 2003 to 2006 make it a criminal offence for a foreign national to work without an employment permit. Employers are committing an offence themselves if they employ a foreign national without a valid work permit.

•             The Acts place an onus on the employer to carry out checks in order to be satisfied that a prospective employee does not require an employment permit, and, if he or she does, that they have obtained one.

•             NERA inspectors are authorised to exercise powers under the Employment Permit Acts. If, during an inspection, NERA finds evidence showing that an employee does not have a valid employment permit, both the employer and employee are advised of the need to correct the situation. They are also informed of the consequences of failing to do so.

•             An employer failing to rectify matters could be prosecuted. NERA commenced initiating proceedings under S.2 of the 2003 Act in 2012.

•             An Garda Síochána are also an enforcement authority under Employment Permits legislation with prosecution powers.

describe the image

Who needs an Employment Permit?

According to the Department of Jobs, Enterprise and Innovation, a non-EEA national (except in the cases listed below) requires an employment permit to take up employment in Ireland. The EEA comprises the Member States of the European Union together with Iceland, Norway and Liechtenstein.

Employment permit (or work permit) holders are only allowed to work for the employer and in the occupation named on the permit. If the holder of an employment permit ceases to work for the employer named on the permit during the permit’s period of validity, the original permit (along with the certified copy) must be returned immediately to the Department of Enterprise, Trade and Innovation.

Citizens of non-EEA countries who do not require Employment Permits include:describe the image

 

•             Non-EEA nationals in the State on a Work Authorisation/Working Visa

•             Van der Elst Case The European Court of Justice delivered a judgement on the Van der Elst Case (Freedom to Provide Services) on 9 August, 1994. The Court ruled that in the case of non-EEA workers legally employed in one Member State who are temporarily sent on a contract to another Member State, the employer does not need to apply for employment permits in respect of the non-nationals for the period of contract.

•             Non-EEA nationals who have been granted permission to remain in the State on one of the following grounds:

•             Permission to remain as spouse or a dependent of an Irish/EEA national;

•             Permission to remain as the parent of an Irish citizen;

•             Temporary leave to remain in the State on humanitarian grounds, having been in the Asylum process.

•             Explicit permission from the Department of Justice, Equality and Law Reform to remain resident and employed in the State

•             Appropriate business permission to operate a business in the State

•             A non-EEA national who is a registered student

Swiss Nationals: In accordance with the terms of the European Communities and Swiss Confederation Act, 2001, which came into operation on 1 June, 2002, this enables the free movement of worker between Switzerland and Ireland, without the need for Employment Permits.

 

It is imperative that every labour market opportunity is afforded to Irish and other EEA nationals in the first instance. This is also in accordance with EU obligations and recognises that Ireland's labour market is part of a much greater EEA labour market which affords a considerable supply of skilled workers.

Work Permits

 

An interesting point to note is that work permits will not be considered for certain occupations.

Since April 10th 2013 occupations listed as ineligible for work permits are as follows:

•             Hotel, tourism and catering staff except chefs

•             Work riders – horseracing

•             Clerical and administrative staff

•             Drivers (including HGV drivers)

•             Nursery/crèche workers, child minders/nannies

•             General operatives and labourers

•             Operator and production staff

•             Domestic workers including carers in the home and child-minders*

•             Retail sales staff, sales representatives and supervisory or specialist sales staff**

•             The following craft workers and apprentice/trainee craft workers: bookbinders, bricklayers, cabinet makers, carpenters/joiners, carton makers, fitters - construction plant, electricians, instrumentation craftspeople, fitters, tilers - floor/wall, mechanics - heavy vehicles, instrumentation craftspersons, metal fabricators, mechanics - motor, originators, painters and decorators, plumbers, printers, engineers - refrigeration, sheet metal workers, tool makers, vehicle body repairers, machinists - wood, plasterers and welders

* In exceptional circumstances an employment permit may be granted for a carer who is a medical professional caring for a person with a severe medical condition or for a carer who has a long caring relationship with a person with special needs where there are no alternative care options

** Specialist language support and technical or sales support with fluency in a non-EEA language in respect of those companies that have formal support from the State’s enterprise development agencies earning at least €27,000 a year may apply for a work permit.

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Effective Communication in the Workplace.

Employees and the people on the ground in general, are an invaluable source of information for employers. Whether it is positive or negative, employees can provide a whole host of important feedback for your business - if you take the time to listen to and interpret their comments they can be a real asset to you.

Effective Communication

 

 

Conducting regular meetings between employees and managers is a good way to keep lines of communication open. However, sometimes people are reluctant to speak out in an open forum, particularly where they have something negative to say or where they have an issue involving someone else who is included in the meeting.

Employee surveys are an ideal way for employees to share their opinions about their job and work environment etc. Confidential surveys tend to encourage honesty and can prove to be of great assistance to employers. Employee participation should be encouraged. Employees will feel as though their input is valued if attention is paid to their suggestions/recommendations. If action is taken by the employer as a result of employee opinions, morale amongst workers can be increased and relationships between the employer and their employees can be drastically improved. This has a positive effect on productivity.

Similarly, as employees leave the company; an exit interview should be carried out. This can be very beneficial for the employer as it can, for instance, give the employer an insight in to the reasons behind the employee’s departure. It can also highlight other issues that exist within the business – issues that management may not necessarily already be aware of. It can also reveal what is working well and where resources should be focused. People tend to be more open and honest about what they are feeling when they know that divulging the information will not have any negative bearing on them.

Not asking the opinion of a departing employee is a wasted opportunity.

It is important to give employees the opportunity to elaborate on their answers and to encourage them to give you as much information as possible – the more information that they impart the better. Leave an additional space for them to comment on issues that you may not have thought to include.

 

Here are some examples of questions that should be included in an exit interview:

 

  • How long were you employed by the company?

  • Were you in a supervisory role?

  • Were you a full-time or part-time employee?

  • Did you resign or was your employment terminated? If other, please explain.

  • If you resigned, what were your reasons for leaving the company? Please list all reasons. (E.G: Geographical Location, Family Circumstances, Career Development etc.)

  • If you left for a new position, was the salary offered greater than your salary here? If so, please reveal the approximate percentage difference.

  • Can you explain why the new position (if relevant) was more desirable than your position here?

  • What might have motivated you to remain in your current position? (E.G: Improved Benefits, More Time-Off, Less/More Travel, Promotional Opportunities etc.)

Exit Survey

  • What impacted your decision to leave the company? (E.G: Lack of Equipment/Information, Work that did not Challenge, Too much/Too little work, Pressure, Remuneration/Benefits, Other Personnel, Relationship with Supervisor/Co-workers, Morale, Teamwork, Goals, Harassment, Organisational Structure, Physical Environment etc.)

  • Can you please tell us about your positive experiences with the company? (E.G: Benefits, Hours, Facilities, Your Supervisor, Co-Workers, Personnel Practices/Policies, Physical Environment/Work Area, Development Opportunities, Level of Support etc.)

  • Do you feel as though you received adequate consideration for positions that you applied for? Please explain your answer.

  • Do you feel as though your work was fairly evaluated through performance reviews during your employment? Please explain your answer.

  • Do you feel as though your monetary recognition was in line with your performance? Please explain your answer.

  • Was the frequency/level of your recognition appropriate? Please explain your answer.

  • Do you feel as though you received adequate training for your position and the duties you were required to carry out? Please explain your answer.

  • Did you have adequate resources, equipment, support and information to carry out your job well? Please explain your answer.

  • Was your work environment free of sexual, religious, age and/or racial discrimination? If no, please explain in detail.

  • Were you satisfied with the quality and quantity of feedback received from your supervisor about your performance? Please explain your answer.

  • Were you kept well informed on what was expected of you in the workplace? Please explain your answer.

  • Did you feel free to discuss your career development with your supervisor? Please explain your answer.

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Risk Assessment for Pregnant Employees

As soon as an employer has received written notification of pregnancy from an employee, a risk assessment should be carried out.

The employee should give their employer a copy of any advice that their Doctor/Midwife has given them if it could have an impact on the pregnant employee’s risk assessment. The risk assessment’s purpose is to evaluate the employee’s ability to carry out their role and to identify any possible risks to mother and baby.

Pregnant Employees Risk Assessment

 

 

Examples of some risks are:

  • Standing/sitting for long periods

  • Lifting/carrying heavy loads

  • Threat of violence in the workplace

  • Long working hours

  • Excessively noisy workplaces

  • Exposure to toxic substances

  • Work-related stress

  • Workstations and posture

 

Set out below are the different stages of a pregnant employee risk assessment:


Step 1: Identify the risks (bearing in mind that there may not be any)


Step 2 - Determine what can be done to reduce/remove any of the risks identified in Step 1. This may mean modifying the working hours or conditions of the pregnant employee. This stage can also involve assigning the employee to an alternative role during pregnancy. It is important to remember that the employer is not allowed to alter the employee’s pay for the duration of this change in role.


Step 3 – If the identified risks are great and no possibility of removal/reduction can be found (this may not be practical within the workplace etc.), the employer may decide to suspend the employee from duties until the health and safety of the mother and unborn child/children is no longer threatened. This is known as Health & Safety Leave. Health and Safety Leave can also be applicable for breastfeeding mothers. During Health & Safety Leave (the period of suspension) the employee is entitled to full pay from the employer for the first three weeks. Exceptions can occur if the employee has unreasonably refused to do the alternative ‘risk-free’ work offered to them or if the employee does not meet any reasonable requirements. 

 Risk Assessment

The Department of Social Protection pays Health and Safety Benefit after the first three weeks of Health and Safety Leave has passed. In order to qualify for Health and Safety Benefit, you must meet certain criteria and PRSI contribution conditions. Employees are still considered to be in employment so they continue to accumulate their annual leave entitlement. However, they are not entitled to payment for public holidays that occur while on Health and Safety Leave.

 

 

It is essential that the employer regularly monitors and reviews any assessment made to take account of the possible risks that may occur at the different stages of pregnancy.


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Force Majeure Leave in the Irish Workplace

There are several types of leave that an employee may be entitled to. Some forms of leave are statutory entitlements and some other forms are not. Maternity Leave, for instance, must be given to employees when they are pregnant. Some forms of leave are paid and others are not. This can depend on statutory obligations and on the terms and conditions set out in the Contract of Employment. Annual Leave is a statutory entitlement and it must be paid by the
employer. Sick Leave, however, is not always paid by the employer (this depends on individual company policies).

Force Majeure

Force Majeure Leave is less commonly discussed. The purpose of Force Majeure Leave is to provide limited, paid leave to enable an employee to deal with family emergencies resulting from injury or illness of a close family member. Force Majeure Leave applies where the immediate presence of the employee is urgent and indispensable (essential).

 

 

A close family member is defined as one of the following:

  • A child or adopted child of the employee
  • The husband/wife/partner (same or opposite sex) of the employee
  • A parent/grandparent of the employee
  • A brother/sister of the employee
  • A person to whom the employee has a duty of care (where he or she is acting in loco parentis)
  • A person in a relationship of domestic dependency with the employee
  • Persons of any other class (if any) as may be prescribed

 

Force Majeure Leave

 

By its nature, an employee will not usually be able to give notice of the need to take Force Majeure Leave. The employee should, however, inform the employer (in writing) of reasons for taking the leave as soon as is reasonable practicable. The employee should provide details regarding the need for the leave and should confirm who the leave was taken in respect of.

Employers are obliged to keep a record of Force Majeure Leave taken by employees.

Employees will be entitled to:

 

          -   up to 3 days paid Force Majeure Leave in any consecutive 12 month period; or     

          -   up to 5 days in a 36 consecutive month period.   

Absence for part of a day is usually counted as a full day of Force Majeure Leave. Employees are entitled to receive pay for this type of leave. Employers can grant employees more than the number of days outlined above; however, they are not obliged to do so.

Employees are protected against Unfair Dismissal for taking Force Majeure Leave or for proposing to take it.

Death is not covered under Force Majeure Leave – Leave taken when a death occurs falls under Compassionate Leave and this tends to depend on employee contracts as well as custom and practice within the workplace.

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More cuts in Maternity Benefit – Budget 2014

The Budget 2014 announcement that Maternity Benefit is to be capped at €230 per week has significant implications for numerous employees and employers alike.

Maternity Benefit, Maternity Leave, Budget 2014

The current upper rate of €262 per week is an entitlement enjoyed by the vast majority of women in Ireland claiming Maternity Benefit. The reduction by €32 per week, which will be effective for new Maternity Benefit claims from January 2014, may discourage women from having children. Alternatively, it may force mothers to avail of shorter periods of Maternity Leave than they would like because they simply cannot afford to remain out of the workplace for the full 6 month period.

The reduction of €32 per week over 6 months will see many new mothers lose out on €832 in Maternity Benefit.

Some employers pay the difference between the Department of Social Protection Maternity Benefit figure and the employee’s regular salary (a "top-up" amount) as a gesture to employees so that they do not suffer major financial implications while on Maternity Leave.

The Budget 2014 decision to reduce the amount paid by the State means that employers who cover the difference between Maternity Benefit and an employee's regular salary will now have to find an additional €832 per employee over the 6 month period in order to maintain the same level of maternity pay for employees while they are availing of maternity leave.

Maternity Benefit

 

 

 

 

 

 

 

 

 

 

 

Click the image below to download your guide to Public holiday Entitlements

 

Public holidays, Bank Holiday Pay

 

 

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Illness Benefit “Wait Period” Extended from 3 to 6 days – Budget 2014

Budget 2014, Sick Pay, Illness BenefitSick pay from employers is not a statutory entitlement. It is up to the employer to decide whether or not to pay employees while they are out of work sick (once all employees are treated equally). Employers are obliged to provide details of their sick pay policy in employment contracts.

 

During times of incapacity or illness the employee can apply to the Department of Social Protection for Illness Benefit (once the employee has paid enough in PRSI contributions he or she should be entitled to Illness Benefit).

 

If it is Company policy to continue to pay employees while they are ill or incapacitated, the employer often requires that the employee signs over any State Illness Benefit received to the Company.

 

Sickness Benefit, Illness Pay

 

A Budget 2014 announcement confirmed today (15th October, 2013) that the number of
“waiting days” for Illness Benefit will be increased from 3 days to 6 days from 1st January 2014.

 

What this means is that an employee will not be entitled to receive Illness Benefit for the first 6 days of any period of incapacity for work. This is more than one full working-week.

Sick Pay, Work Illness

 

This has the potential to significantly affect a large number of people - employees and employers alike. The extension, which is said to save the state €22million, will negatively impact employees who work for companies that do not pay for sick leave – doubling the number of days that must elapse before they are entitled to receive any income.

 

The decision will also have an impact on companies who continue to pay employees during periods of illness or incapacity but recover some of the costs of doing so by forcing employees to sign over any State Illness Benefit received as, from January of next year, the employer will not now receive any refund for the first 6 days of absence.

 

Annual Leave Tracker

 

 

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Annual Leave Entitlements Guide Ireland

Annual leave is paid time off work that employees are granted by their employers - it can be used for whatever the employee wishes. It is important for employees to recharge the batteries and annual leave helps maintain a motivated and productive workforce. It is essential to note that the employer is statutorily obliged to provide a certain amount of annual leave to his or her employees. An employer can, of course, provide more leave than he or she is obliged to give – if an employer offers more leave to employees with long service histories or employees who exceed targets, for instance, this policy should be clearly defined and should be applied fairly across the board.  

Regardless of the employee’s status or length of their service everyone is entitled to annual leave. All time worked is eligible for paid holidays.

 

Here is an easy guide to assist employers in working out what leave should be allocated to each employee:

 

Annual Leave Guidelines

 

There are three methods used to work out leave entitlements:

 

a)            The most common method used is: 4 working weeks in a leave year during which the employee works a minimum of 1,365 hours (Unless the employee has changed employment during that year).

b)            1/3 of the employee’s working week per calendar month of at least 117 working hours (Eg: 1.67 * 12 = 20 days)

c)            8% (.08) of the hours worked by the employee in the leave year (the total is not to exceed 4 working weeks)

In some instances an employee’s leave could be worked out using more than one of the approaches listed above – where this is the case all applicable methods should be calculated and the employee shall be entitled to the highest result. Remember - the maximum statutory annual leave entitlement is four of his / her normal working weeks.

 

How to calculate an employee’s annual leave pay:

 

Not everyone works a 9-5 office job and not all employees earn the same gross figure on a weekly basis so here is a guide on how to determine holiday pay due to various categories of employees:

(a)            If the employee’s pay is calculated by a fixed rate or a salary then the figure due to the employee per week of paid annual leave is equivalent to the amount he or she received for the normal weekly working hours last worked - This payment includes any regular bonus or allowance (that isn’t based on work completed) - it excludes any overtime pay.

 

Annual Leave

(b)           If the employee’s pay is not calculated by a fixed rate or salary but instead by commission, for instance (or based on productivity rates) the amount paid to this employee per week of annual leave should equal their average weekly pay calculated over the 13 weeks prior to their annual leave commencing. (If the employee did not work during that period, the average weekly pay is calculated over the 13 weeks prior to the employee’s last working day before the annual leave commences. This excludes overtime.


In order to accurately calculate the number of annual leave days an employee is entitled to it is necessary to incorporate all hours worked in the calculation including time spent on annual leave (yes, employees accrue annual leave while on annual leave!), time spent on maternity leave, parental leave, force majeure leave or adoptive leave as well as time spent on the first 13 weeks of carer’s leave. Employees do not accrue annual leave while on sick leave, occupational injury, temporary lay-off, or career break.

 

If an employee falls sick during his or her annual leave this day(s) is not counted as annual leave (once it is covered by a medical certificate) and the annual leave day is kept for them to use at a later date.

 

It is common practice for an employee to request their desired leave dates and usually, once an agreed period of advance notice is given (allowing the employer to arrange suitable cover etc.), the employer agrees. Annual leave is usually discussed in terms of weeks but, with employer consent, it can be broken down into shorter periods – often days or even half days at a time. It is the employer who approves holidays (it would not work from a business perspective if all employees were to arrange leave at the same time, for instance). The employer is, however, required to take the employee’s family responsibilities and need for rest and recreation into consideration.

 

This annual leave must be given to employees within the leave year or, with the consent of the employee, within the first six months of the following year. The onus is on the employer to ensure that the employee takes their statutory leave allocation within the appropriate period. Employees may, with the consent of the employer, carry over holidays that exceed the statutory allowance to the next year.

 

If the contract of employment is terminated and there is unused annual leave in respect of the employee the employer is obliged to compensate the employee for the accrued leave. It is illegal to pay an employee in lieu of the minimum statutory leave entitlement unless the employment relationship is terminated.

Annual Leave Tracker

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Arm Your Company with the Best Human Resources Support

The HR Company

Since 2001 The HR Company, B2E Ltd. has been successfully providing a cost-effective HR and advice support service(s) for small to medium sized businesses (SMEs) across Ireland. The HR Company also assists several large corporations and multinationals with their HR operations. With so many pieces of employment legislation in place in Ireland it is a challenge for companies to ensure that they are fully compliant on all counts. The HR Company is an Irish-owned company headed up by Philip Carney, former head of HR for Microsoft’s European Operations Centre, and Angela O’Grady, former Staffing and Recruiting Manager. A team of 20 HR specialists provide peace of mind for Employers by guiding them on all aspects of Irish Employment Law.

 

The HR Company provides a very affordable 24/7 protection service to those who wish to offload the burdens and risk associated with HR activities.  Whether it relates
to disciplinary procedures, annual leave, redundancy or anything in between; a dedicated account manager is at the end of a phone to guide Employers and help insulate companies whenever a query about best practices in HR arises.

 

Not only does The HR Company provide bespoke employment documentation to ensure companies pass a National Employment Rights Authority (NERA) inspection, tailored disciplinary letters and any other relevant material are prepared by dedicated account managers to ease the load on the Employer. The HR Company acts as the eyes and ears of the Employer on all HR related issues – protecting companies by keeping them informed on any relevant legislation updates.

 

In this era of increased employee litigation employees know their rights – companies should shield themselves against the risk of a costly dispute by arming themselves with the best on-call
support.

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