HR news review: 2013
Caroline McEnery of HR & Business Solutions outlines the news highlights of 2013 within the employment and HR sector and the implications of these developments for your business
Print13 December 2013
JLCs
The abolition of the JLC in July 2011 has left retailers on tenterhooks awaiting the recommendations. Since taking office the Minister for Jobs, Enterprise and Innovation Richard Bruton had aimed to reform the JLC system. In October 2013, the Labour Court Report on the JLC was published. Mr Bruton said that he accepted the recommendations contained in the Report: which recommends that most JLCs are retained. From being deemed unconstitutional to recommending re – instatement, the JLC roundabout continues.
It has been suggested that the retail Grocery and Allied trades JLC be retained, renamed and confined to establishments working under a franchise. This will see retail grocery outlets removed from the JLCs grips leaving those who operate multiples or come under symbols to take the hit. What hasn’t been taken into account is the reality that many retailers coming under the franchise umbrella may already be struggling to remain competitive. This can only have a negative impact for these employers, which will inescapably impact employees and the community in an equally negative manner when employers have no choice but to cut hours and in some cases jobs.
Implementing these proposed changes can only be a backward step in seeking fair and consistent regulations to govern pay and conditions of work in Ireland. Having deemed the JLCs unconstitutional in 2011 along with the REAs in 2013, let’s hope that we can continue to shed these dated agreements and give retail business’s a chance to grow again.
Change in retirement age
From January 2014 the state pension will be abolished for those aged 65. As most businesses have a retirement age of 65, is there an expectation that they will now retain employees until their 66th birthday? The feedback suggests that most will maintain their contractual agreement meaning that employees will be expected to retire on their 65th birthday. Next year 14,000 workers are expected to turn 65 and while considering medical and health advances longevity within the workplace is a reasonable assumption. With this many workers will be pleased to have the opportunity to continue working beyond 65. Yet many employers will believe that the age they have set in their contracts of employment are reasonable and will not accommodate working beyond this agreement.
As the retirement age is likely to be under the microscope next year it is possible that employment equality may also come under scrutiny. In Ireland there is no statutory retirement age and as we all know employees cannot be discriminated because of their age. The European Court of Justice has determined that set retirement ages must now be objectively justified. Given this, employers may be faced with this dilemma in an equality tribunal as employees may wish to work longer now due to financial needs.
Workplace relations
This year we saw the launch of the new workplace relations website and system for complaints. This follows the announcement of the new workplace relations reform programme by Richard Bruton, Minister for Jobs, Enterprise and Innovation. It replaces the five workplace relations websites: National Employment Rights Authority, Labour Relations Commission, Employment Appeals Tribunal, Labour Court and Equality Tribunal. It will also in time become the website of the proposed workplace relations commission and labour court.
The website provides both employers and employees with the information they need to ensure that they are operating in line with employment rights and legislation. The objectives of the reform are to ensure that grievances are resolved within reasonable timeframes and that the process is made simple, accessible, independent and fair. This will make it easier for employees to take a claim if they feel their employer is not treating them fairly or if their employer is not legally compliant. It also highlights that the burden for legal compliance in the area of employment law is a need which cannot be ignored by employers. Being fully compliant is the message unless you want to pay a hefty price or suffer the negative effect on morale if employees feel they are not being fairly treated.
Parental leave
In March this year the Minister for Justice, Equality and Defence Alan Shatter signed regulations extending parental leave from 14 weeks to 18 weeks and allowing parental leave for a child with a long-term illness be taken up until the child turns 16. The regulations also allow parents returning from parental leave to request a change in their working hours or pattern. Employers must consider such a request but are not required to grant it. However, employers must be able to justify why they cannot grant the request in line with business requirements. Employers need to ensure they have a system in place to show this process is managed fairly and objectively.
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