Information For Employer Starting A New Business
When setting up a new business with paid employees, employers must be familiar with a number of basic provisions under Irish employment law. We set out here just eight considerations to be taken into account when setting up a new business in Ireland. A full discussion of your own particular circumstances and new business with Diarmaid Falvey will provide even more insight and help satisfy you that you have all the issues covered.
1. Employment Status of Employees
As an employer you will engage people on either “contracts of service” or “contracts for services”. Only a person engaged under a contract of service will be an employee and therefore protected by the full range of employment legislation; an independent contractor or self-employed person will have a contract for services with the party for whom the work is being done. The distinction between a contract of service and a contract for services, is sometimes unclear but the type of contract a person is engaged under will have different and serious implications for both the employer and the employee in matters such as employment protection legislation, legal responsibility for injuries caused to members of the public, taxation and social welfare. Guidance on this issue can be seen in the “Code of Practice on Employment Status”, agreed between the Social Partners, with input from the Office of the Revenue Commissioners, Department of Social and Family Affairs and NERA.
2. Record Keeping
There are legal timeframes during which employers must maintain certain records relating to employees and former employees.
3. Written Terms and Conditions
A full contract of employment does not have to be in writing despite widely held beliefs to the contrary. However certain terms and conditions of employment must be given in writing to the employee within two months of starting employment. These would typically include confirmation of the circumstances in which fixed term employees employment will come to an end; the method of calculating pay; whether or not there is a sick pay scheme in operation.
4. Statutory Leave
Employers are obliged to allow employees who meet the relevant qualifying criteria to avail of certain statutory protective leaves, such as maternity leave, parental leave, adoptive leave, carer’s leave and health and safety leave. Each area has specific legislation setting down the rules for entitlement.
5. Working Time Rights
Employers must ensure that employees are given adequate rest. The Organisation of Working Time Act, 1997, sets down the rules governing maximum working hours, daily and weekly rest breaks, annual leave and public holiday entitlements.
6. National Minimum Wage
Most experienced adult workers in Ireland are entitled to be paid the national minium wage, currently €8.65 per hour. There are some exceptions to the minimum wage requirement including those employed by close relatives, those aged under 18 and trainees or apprentices. In addition certain industries command a higher minimum wage and this includes the construction industry.
7. Establishing Policies and Procedures
The establishment of certain policies and procedures, such as discipline and grievance procedures, together with bullying and harassment policies, is required. The establishment of policies such as data protection and absence policies is considered best practice and will assist if there is a dispute in the future.
8. Termination of Employment
Employment contracts can be terminated in a variety of ways such as employee leaving, dismissal, redundancy or insolvency. Employers will need to be familiar with the rules relating to termination of employment in all of these contexts.
30 July 08