by Breda O'Malley July-23-2015 in Employment Law

The enactment of the Workplace Relations Bill1, which comes into effect on 1 October 2015, represents a welcome and substantial overhaul of the current system for the resolution of employment disputes in Ireland. Breda O’Malley outlines some of the key reforms.

The overall objective of the new legislation is to reform the current system in order to deliver a world-class workplace relations service which is simple to use, independent, effective, impartial, cost-effective and provides for a workable means of redress and enforcement, within a reasonable period of time. The decision to proceed with reform follows acknowledgment that the current system is outdated and can at times be confusing and frustrating for employers, employees and their legal representatives alike.

Among its main aims, the legislation seeks to cut out "forum shopping" as under the current system, a dispute with a given set of circumstances can lead to the necessity to bring different elements of the complaint in different fora (including the Equality Tribunal, the Rights Commissioner, the Labour Court, the Employment Appeals Tribunal (EAT) and the Civil Courts, Circuit and High). Reflecting the change which is about to take effect, the Bill instead introduces a single framework for dealing with referred disputes.

Main reforms

  • Establishment of the Workplace Relations Commission (WRC) —The new legislation will merge each of these bodies thereby establishing a single body, the Workplace Relations Commission (WRC). This body will be tasked with adjudicating or facilitating the resolution of all employment disputes at first instance, thus eliminating the need to bring multiple claims to multiple bodies.
  • Appeals — The appellate functions of the EAT will move to a reconfigured Labour Court. The Labour Court will act as an appeals body for the newly established WRC. Appeals to the High Court may be lodged on a point of law only. The new system will operate to limit the potential lifespan of a dispute to two full hearings — an initial hearing and an appeal.
  • Mediation — Importantly, the Bill places considerable importance on early dispute resolution, hopefully eliminating the need for the parties to resort to formal adjudication where possible. Further to this objective, the Bill provides for a legally binding mediation facility. While participation is not obligatory, where it is embarked upon it can lead to a pre-arbitration agreement that could prove less costly.The Bill offers three services for resolving disputes at the WRC. Disputing parties can avail of the  services of either a Case Resolution Officer (by telephone) or a Mediator (face-to-face) who will facilitate parties to reach a settlement agreement. An important aspect of this agreement is that if an employer offers a settlement but the employee rejects it, the offer cannot be used as an indication of culpability during a later hearing. Where a complaint or dispute cannot be resolved by either of these mechanisms, the third way is to refer the matter for adjudication before an Adjudication Officer sitting in private.
  • New Compliance Measures — Under the Bill, inspectors will either be appointed or transferred from previous inspectorate roles to the WRC and will be conferred with additional powers. The aim of this aspect of the legislation is to promote higher levels of compliance amongst employers. Inspectors will be empowered to issue Fixed Payment Notices (on-the-spot fines) to employers to a maximum of €2,000 for a number of offences including: failing to provide employees with a written statement of their hourly rate of pay for a pay reference period; failing to produce wage statements to employees; and failing to notify the Minister of proposed collective redundancies. Inspectors will also be empowered to issue Compliance Notices in order to compel employers to rectify certain contraventions, including: an unlawful deduction of wages; failing to provide employees with a contract of employment or written disciplinary procedures; and certain breaches of working time rights.

Summary

The Workplace Relations Bill represents the culmination of much-needed reform to the current system which is outdated and inefficient. As a radical overhaul of the existing system, it seeks to reduce costs, increase efficiencies and simplify the process of the referral of employment disputes. Inspectors will also be empowered to issue Compliance Notices in order to compel employers to rectify certain contraventions, including: an unlawful deduction of wages; failing to provide employees with a contract of employment or written disciplinary procedures; and certain breaches of working time rights.

In light of the vast array of reforms to be implemented, those working in HR, employers, and employment law practitioners should familiarise themselves with the new system.

1 | It is anticipated that this Bill will be passed into law on 1 October 2015. Until the legislation is enacted, the provisions of the Bill are subject to change.

 

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About the Author

Breda O'Malley
Breda O'Malley

Breda practises in both Employment and Commercial Law and is Partner and Head of the Employment Law team at Hayes solicitors. Breda has trained and qualified as a mediator with the UK based, internationally renowned Centre for Effective Dispute Resolution (CEDR). Breda practices as a mediator of commercial, employment, boardroom, charity trustee and shareholder disputes.