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National Minimum Wage
December 31, 2020
National Minimum Wage
With effect from the 1st January 2021, the National Minimum Wage in Ireland will be increased to €10.20 per hour for an experienced adult worker.
APPLICABLE EMPLOYEES
The full rate is applicable to any employee who is at least 18 years of age except as detailed below;
EMPLOYEE MINIMUM HOURLY RATE
2020January 2021
Aged 20 or more: €10.10* €10.20*
Aged under 18: €7.07* €7.14*(70%)
First year from date of first
employment over age 18: €8.08* €8.16* (80%)
Second year from date of
first employment over
age 18: €9.09* €9.18* (90%)
*Per working hour
WHO IS AN EXPERIENCED ADULT WORKER?
An experienced adult worker is an employee who is not:
• under the age of 18 years,
• or in the first two years after the date of first employment over age 18,
• or a trainee undergoing structured training as defined by the Act.
WHO DOES IT NOT APPLY TO?
The National Minimum Wage rate does not apply to the remuneration of a person who is;
• The spouse, father, mother, grandfather, step-father, step-mother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister of an employer, employed by the employer, or
• An apprentice within the meaning of or under the Industrial Training Act, 1967, or the Labour Services Act, 1987.
• Alternative minimum rates may be set down under Employment Regulation Orders (EROs) of Joint Labour Committees or Sectoral Employment Agreements (SEAs) created by Employment Collective Agreements between Employers and Trade Unions.
WORKING HOURS
Full time, part time, temporary or casual employees are all entitled to the national minimum wage for the following hours worked;
All hours where an employee carries out an activity for an employer including;
• Overtime
• Time spent travelling on official business
• Time on authorised training/study during normal working hours
Excluding;
• Time on standby/on call away from place of work
• Time on authorised leave/notice or absent from work
• Travelling from residence to work or to a place of training
Where an employee’s hours of work are uncontrolled or unsupervised and their average pay would be not less than 150% of the minimum adult rate, they must maintain written records of hours worked and return these to the employer.
CALCULATION OF HOURLY PAY (RECKONABLE PAY)
Reckonable pay means payments that are allowable in calculating an average hourly rate of pay under the National Minimum Wage Act. The following payments may be taken into account when determining average hourly rate of pay.
• Basic Pay
• Shift Premium
• Piece/Incentive Rate.
• Commission
• Any payments under section 18 of the Organisation of Working Time Act, 1997 (zero-hour protection)
• Productivity related bonuses
• Board and/or lodging
• Service charge paid through payroll
Note: overtime, call-out premium, service pay, weekend and public holiday premiums, unsociable hours premiums, tips or gratuities paid through the payroll and allowances for special or additional duties may not be included.
PAY REFERENCE PERIOD
The period of time over which you may calculate the average earnings (Pay Reference Period) may be a week, a fortnight and must not be longer than one month.
Employers are obliged to advise employees of the pay reference period they are selecting for calculations of minimum pay. Employees must be notified in writing as part of their Terms and Conditions of Employment.
An employee may request from his or her employer a written statement of the employee's average hourly rate of pay for any pay reference period (other than the employee's current pay reference period) falling within the 12-month period immediately preceding the request.
EMPLOYEE COMPLAINTS
An employee may make a complaint to the Workplace Relations Commission to investigate allegations of failure by the employer to pay the National Minimum wage.
Such a referral must be within 6 months from the date of receipt of a written statement or from the latest date the employer should have given a written statement.
Employees may not refer a complaint before requesting a written statement from their employer.
VICTIMISATION OF EMPLOYEES
No employer may victimise an employee for exercising their rights.
Any employee so victimised who cannot resolve the matter with their employer, may refer the matter to the Workplace Relations Commission or where dismissed, under the Unfair Dismissals Act 1977.
MINIMUM WAGE IN PRACTICE
With this most recent increase in the National Minimum Wage, an employee on minimum wage who works a full 39-hour week will now receive an additional €3.90 per week, or an extra €202.8 gross per year.
FURTHER DETAILS ON THE UPDATE OR ABOUT OUR SERVICES
MAY BE OBTAINED FROM: JOHN BARRY/TARA DALY/ HUGH HEGARTY AT TEL: 01 8870690
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As we navigate the complexities of Irish employment law, public holiday entitlements continue to be a topic of interest and sometimes uncertainty. In this article, we've compiled recent case law and key rulings that provide valuable insights into your obligations and rights regarding public holidays. These cases will help clarify common questions and ensure that your policies align with the latest legal standards. Failing to Pay Public Holiday Entitlements? It Could Cost More Than You Think! Full case available here: https://www.workplacerelations.ie/en/cases/2024/november/adj-00044754.html This case is a strong example of how the Workplace Relations Commission (WRC) can exercise its authority not only to ensure an employer pays outstanding statutory entitlements but also to award additional compensation for breaches of employment rights. Both parties agreed that the Complainant had not been paid for four public holidays. Under Section 27(c) of the Organisation of Working Time Act, the adjudicator has the power to order an employer to pay compensation that is "just and equitable" in the circumstances, up to a maximum of two years' remuneration. While the Respondent acknowledged the breach and calculated the unpaid wages as €361.60, the adjudicator determined that this amount alone was insufficient. Emphasising the seriousness of the breach—particularly given that public holiday entitlements are clearly outlined in legislation—the adjudicator awarded the Complainant €1,000 in total. This decision reinforces that failing to comply with well-established statutory entitlements can result in financial penalties beyond simply repaying what is owed, highlighting the WRC’s commitment to upholding employee rights. When Public Holiday Entitlements may not apply Full Case available here: https://www.workplacerelations.ie/en/cases/2025/january/adj-00050728.html This case is an interesting example of how public holiday entitlements may not apply under the Organisation of Working Time Act. The Complainant alleged that he had not received payment for his public holiday entitlement for several years prior to his resignation on 12 th February 2024. In response, the Respondent argued that the Complainant had been absent from work for a significant period (2022) before his resignation and, as a result, had not accrued any entitlement to public holiday pay during that time. Under the Act, the Third Schedule specifies that an employee retains entitlement to public holiday pay for up to 26 weeks of absence or up to 52 weeks if the absence is due to a certified work-related illness. In this case, the Complainant was on certified sick leave until January 27, 2023. Given the applicable cognisable period for the complaint, it was determined that the Complainant had not accrued public holiday entitlements within that timeframe. Consequently, the complaint was deemed not well-founded. This case underscores the importance of understanding the statutory conditions under which public holiday entitlements apply, particularly concerning extended absences from work. Labour Court Rules 'On-Call' Time Doesn't Automatically Qualify as Working Time for Public Holiday Entitlements Full case available here: https://workplacerelations.ie/en/cases/2024/may/dwt2415.html This is an interesting case in that The Labour Court reviewed the appeal of Mater Misericordiae University Hospital regarding an employee, Adrian Stefan, who was on call during public holidays (March 18, 2022, and June 6, 2022). Stefan argued that his "on-call" time should count as "working time" under the Organisation of Working Time Act, making him eligible for public holiday entitlements. The Court considered EU jurisprudence on "on-call" duty, concluding that time spent on-call doesn't automatically qualify as working time unless significant constraints limit personal activities. The Court ruled in favour of the employer, as the employee was not called in on the public holidays. This case highlights that employers should consider whether the employee is restricted from engaging in personal activities during on-call periods, when determining whether on-call work is deemed working time. For any queries in relation to Public Holiday entitlement, don’t hesitate to get in touch with the team at MSS-The HR People. PH: 01 8870690 info@mssthehrpeople.ie
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Each year, millions of Muslims around the world observe Ramadan, a sacred month of fasting, prayer, and reflection in the Islamic calendar. This period of spiritual devotion, which runs from the evening of 28 February 2025 to 30 March 2025, culminates in the celebration of Eid al-Fitr. For Muslim employees, Ramadan is a deeply significant time, and thoughtful workplace support can contribute to a more inclusive and respectful environment. Small but meaningful adjustments can ensure employees feel valued and empowered to balance their religious observances with their professional responsibilities. Here are some practical steps employers can take to support their teams during Ramadan: 1. Offer Flexibility with Working Hours Fasting from dawn to sunset can impact energy levels, particularly later in the day. Where possible, consider offering flexible hours, adjusted start and finish times, or remote working options. Some employees may prefer an earlier start to finish in time for iftar (the evening meal), while others may need later mornings due to late-night prayers. Providing this flexibility can help employees maintain their productivity while observing their faith. 2. Provide a Quiet Space for Prayer Prayer is an essential part of daily life for Muslims, with five prayers observed at specific times throughout the day. During Ramadan, many also take part in additional prayers. Employers can support their employees by ensuring there is a quiet, private space available for prayer, such as a designated room or an unused office. 3. Plan for Annual Leave Requests for Eid Eid al-Fitr, marking the end of Ramadan, is one of the most significant celebrations in Islam. Many employees will request time off to spend the day with family and friends, so planning ahead and accommodating leave requests where possible will help maintain smooth operations while supporting employees in celebrating this important occasion. 4. Be Mindful of Workloads and Energy Levels Fasting can affect concentration and energy, particularly in the afternoon or during long workdays. Employers can help by scheduling more demanding tasks earlier in the day, avoiding unnecessary meetings, and being mindful of employees’ needs. Simple adjustments to expectations and workloads can make a significant difference in helping employees manage their responsibilities effectively. 5. Foster Awareness and Understanding Encouraging open conversations about Ramadan can promote a more inclusive and respectful workplace. Simple gestures, such as acknowledging Ramadan, sharing educational resources, or inviting employees to share their experiences, can enhance awareness and create a culture of support. It’s also important to recognise that not everyone observing Ramadan will fast, so assumptions should be avoided. 6. Recognise and Celebrate Eid Acknowledging Eid in the workplace is a great way to show support and appreciation. A simple "Eid Mubarak" (Happy Eid) in a team meeting, email, or company announcement can go a long way in making employees feel valued. Organisations can also mark the occasion with an internal message or small celebration to foster inclusivity. By making small yet impactful adjustments, employers can create a supportive environment where all employees feel respected and included. Thoughtful consideration of religious observances like Ramadan strengthens workplace culture and contributes to a more engaged and diverse team. For any queries, don’t hesitate to get in touch with the team at MSS-The HR People.
Updated Minimum Pay and Pension Rates for the Irish Construction Sector in 2025 In November 2024, Minister of State for Business, Employment and Retail, Emer Higgins, approved a Labour Court recommendation to adjust minimum pay rates, pension contributions, and sick pay entitlements for workers in the Irish construction industry. This Sectoral Employment Order (SEO) is set to take effect on August 5, 2025, introducing a 3.4% increase in minimum hourly rates across various categories, with an additional 3.2% raise scheduled for August 2026. There are 2 criteria which decide who is covered: · The employer must operate in the construction sector, and · It applies to employees who work in the sector and defines their roles into specific classes, as set down below. The SEO defines what activities place an employer within the construction sector and what experience and qualifications place a worker in a particular employee class. Revised Minimum Hourly Rates Effective August 5, 2025:
On February 4, 2025, the European Commission released draft guidelines clarifying prohibited AI practices under the EU Artificial Intelligence (AI) Act. These guidelines aim to ensure the consistent and effective application of the AI Act across the European Union. While non-binding, they offer valuable insights into the Commission's interpretation of prohibited practices. Key Prohibited AI Practices and Employer Risks The AI Act identifies certain AI practices as posing unacceptable risks to fundamental rights and European values. Notable prohibitions include: 1. Manipulative Techniques Prohibition: AI systems that deploy subliminal or purposefully manipulative techniques, distorting an individual's behaviour without their awareness, leading to decisions they would not have otherwise made, and causing or likely causing significant harm. Example: Some AI-powered recruitment platforms claim to predict a candidate’s job suitability based on their facial expressions or voice tone during video interviews. If these systems use subliminal nudges to influence the recruiter’s perception or decision-making, they could fall foul of the AI Act. 2. Exploitation of Vulnerabilities Prohibition: AI systems that exploit vulnerabilities of individuals or specific groups due to age, disability, or social or economic situations, materially distorting their behaviour in a manner that causes or is likely to cause significant harm. Example: An AI-driven job-matching tool that intentionally steers lower-income applicants towards low-paying roles, based on assumptions about their socioeconomic status, would be considered exploitative under the Act. Similarly, AI screening tools that disadvantage candidates with disabilities by misinterpreting speech patterns or movement in video interviews could violate the law. 3. Social Scoring Prohibition: AI systems that evaluate or classify individuals based on their social behaviour or predicted personal characteristics, leading to detrimental or unfavourable treatment unrelated to the original context of data collection, or treatment that is unjustified or disproportionate. Example: If an employer uses an AI system to analyse employees’ social media activity and assigns them a risk score influencing promotions or disciplinary action, this would be a clear case of unlawful social scoring. Similarly, AI-powered tools that assess employee performance based on personal lifestyle choices, such as credit scores or location tracking outside work hours, could breach the AI Act. 4. Emotion Recognition in the Workplace Prohibition: AI systems designed to infer emotions of individuals in workplace settings, except where intended for medical or safety purposes. Example: Some companies deploy AI tools to monitor employees' facial expressions during meetings or track their tone of voice in customer service calls to assess engagement or stress levels. Such systems, if not strictly used for medical or safety reasons, would be prohibited under the AI Act. Implications for Employers Employers utilising AI systems must assess their practices to ensure compliance with the AI Act. Key considerations include: Review AI Systems : Evaluate current AI tools, especially those used in recruitment, employee monitoring, and decision-making processes, to ensure they do not employ prohibited practices. Policy Updates : Revise internal policies to reflect the prohibitions outlined in the AI Act, ensuring that AI deployments align with ethical standards and legal requirements. Training and Awareness : Educate HR professionals and relevant staff about the AI Act's provisions, emphasising the importance of ethical AI use and the potential risks associated with non-compliance. Vendor Management : Ensure that third-party AI service providers comply with the AI Act, incorporating compliance requirements into contracts and conducting regular audits. Enforcement and Penalties The AI Act establishes a comprehensive framework for AI governance. Non-compliance can result in significant penalties, including fines up to €35 million or 7% of annual global turnover for serious breaches . Conclusion The European Commission's guidelines on prohibited AI practices under the AI Act underscore the EU's commitment to ethical AI deployment. Employers must proactively assess and adjust their AI systems and policies to align with these guidelines, ensuring the protection of individual rights and maintaining public trust in AI technologies. By taking these steps now, businesses can avoid potential legal risks and foster a fair and compliant AI-driven workplace.
The Irish Government has introduced the General Scheme of the Equality (Miscellaneous Provisions) Bill 2024, bringing important updates to employment and equality laws. This Bill proposes key amendments to the Employment Equality Act 1998 and the Equal Status Act 2000, aiming to strengthen workplace protections, increase transparency in recruitment, and improve access to justice for individuals facing discrimination. At MSS – The HR People, we want to ensure our clients stay ahead of these changes and understand how they may impact employers. Key changes employers should be aware of 1. Greater Transparency in Recruitment & Pay Employers will need to ensure job criteria are justified, necessary, and proportionate to the role. Salary details will need to be included in job advertisements to help reduce pay disparities, including the gender pay gap. Employers will no longer be able to ask candidates about past salaries, helping to prevent pay inequality from carrying forward. 2. Extended Timeframes for Discrimination Complaints The deadline for lodging a discrimination complaint with the Workplace Relations Commission (WRC) will increase from 6 months to 12 months, with a possible extension to 18 months in certain cases. This change acknowledges the barriers individuals—especially from marginalised groups—face in seeking redress. 3. Recognition of Intersectional Discrimination The Bill explicitly recognises intersectional discrimination, where individuals face bias on multiple grounds (e.g., race and gender). This strengthens protections and ensures a more inclusive approach to workplace equality. 4. Targeted Recruitment Initiatives for Underrepresented Groups Employers will be permitted to implement positive action measures, such as targeted recruitment campaigns, to support underrepresented groups, including people with disabilities. 5. Updates to Equal Status Complaints & Compensation Limits Equal status complaints involving licensed premises will be handled by the WRC, making resolution simpler and more accessible. Compensation limits under the Equal Status Act will increase, ensuring penalties are effective and in line with EU standards. Adjudicators will have clearer guidelines on awarding compensation, promoting fairness and consistency. What’s Next? The Bill is still moving through the legislative process before becoming law. Once enacted, it will introduce new compliance obligations for employers, making it essential to review recruitment policies, pay practices, and workplace equality measures. At MSS – The HR People, we’re here to help you navigate these changes with expert advice and practical solutions. Get in touch with our team to discuss how these updates might affect your business!
With St. Patrick’s Day approaching, it’s a good time for employers to ensure they are correctly applying public holiday pay and entitlements in line with the Organisation of Working Time Act. Here’s a refresher on what you need to know to stay compliant. Who is Entitled to Public Holiday Benefits? All employees, including full-time, part-time, and casual workers, are entitled to public holiday benefits and, in the case of part time workers, provided they have worked at least 40 hours in the five weeks leading up to the holiday. What Are the Entitlements? Employees who qualify are entitled to one of the following: A paid day off on the public holiday An additional day’s pay A day off within a month of the public holiday An extra day of annual leave How to Calculate Pay for Public Holidays Full-Time Employees: If they normally work on the day the public holiday falls, they should receive a paid day off, or, If required to work the public holiday, should receive double pay, or basic pay plus one of the entitlements listed above or, If they do not normally work that day, they should still receive one of the entitlements listed from 2 – 3, above. Part-Time Employees (provided they meet the 40 hour threshold): If they normally work on the day the public holiday falls, they should receive a paid day off, or, If required to work the public holiday, should receive double pay, or basic pay plus one of the other entitlements listed above or, If they do not normally work that day, they should still receive one of the entitlements listed from 2-4, above. Whether you choose to pay your employee an additional days pay or give time in lieu, this should be based on the calculation of one fifth of their working week. Employees with No Fixed Working Days: If an employee’s schedule varies, their entitlement is based on the average hours worked in the previous 13 weeks. Managing St. Patrick’s Day for Your Workforce Advance Planning: Ensure employees are informed about their entitlements well in advance. Roster Considerations: If your business remains open on St. Patrick’s Day, plan your roster accordingly and communicate any alternative days off where applicable. Payroll Adjustments: Ensure payroll calculations correctly reflect any additional public holiday pay. If you have any specific questions about public holiday pay calculations, our Team are happy to help.
Business leaders understand that change is inevitable. As organisations adapt to evolving workforce needs, they often face the complex challenge of restructuring which can in some cases, lead to employee redundancies. Managing these transitions with empathy and strategic foresight is crucial, not only for the well-being of departing employees but also for maintaining the morale and productivity of the remaining workforce. This is where outplacement services come into play. What is Outplacement? Outplacement refers to support services provided by organisations to exiting employees to help them transition to new job opportunities after redundancy or termination. These services typically include career coaching, resume writing assistance, interview preparation, job search strategies, and emotional support. The primary goal is to equip displaced employees with the tools and confidence needed to secure new employment promptly. The Importance of Outplacement Services Incorporating outplacement services into your organisational strategy is not merely a response to redundancy; it's a proactive measure that reflects a commitment to your employees' futures and the long-term health of your business. Supporting Affected Employees The prospect of redundancy can be both upsetting and life-changing for an employee. Outplacement services offer a structured approach to help individuals navigate this challenging period. By providing personalised programmes that may include help writing resumes and cover letters, navigating job boards, honing interviewing skills, networking, and negotiating salaries, employees are better prepared for future employment opportunities. 2. Protecting the Employer's Brand and Reputation How an organisation handles redundancies can significantly impact its public image. Providing outplacement services demonstrates a commitment to employee welfare, even during difficult times. This compassionate approach can enhance the company's reputation, making it more attractive to potential hires and customers. Maintaining Morale and Productivity Redundancies can create uncertainty and anxiety among remaining employees. By offering outplacement services, businesses show that they value their staff, which can help maintain morale and productivity. Employees are more likely to remain engaged and loyal when they see their employer acting responsibly and ethically. Reducing Legal Risks Providing support during layoffs can also mitigate potential legal challenges. Employees who feel supported are less likely to pursue legal action against the company, reducing the risk of costly and time-consuming disputes. Additionally, outplacement programmes enhance operational efficiency by enabling organisations to manage workforce transitions more effectively. With career coaching, job search support, and networking opportunities provided by external specialists, in-house HR teams and managers can focus on their core responsibilities rather than being overwhelmed by the complexities of redundancies. Implementing Effective Outplacement Services To maximise the benefits of outplacement services, a business should consider the following best practices: Personalised Support Each employee's career path and aspirations are unique. Offering personalised support, such as one-on-one coaching sessions, can address individual needs effectively. This tailored approach increases the likelihood of successful job placements. Comprehensive Resources Outplacement programmes should provide a range of resources, including resume and cover letter writing assistance, interview preparation, job search strategies, and access to job boards. Equipping employees with these tools enhances their competitiveness in the job market. 3. Continuous Feedback and Improvement Regularly assessing the effectiveness of outplacement services through feedback from participants can guide improvements and ensure the program meets the evolving needs of employees. Conclusion Outplacement services are a vital component of responsible and strategic human resource management. They offer tangible benefits to both employees and employers, from supporting affected staff in their career transitions to safeguarding an organisation's reputation and operational efficiency. By investing in comprehensive outplacement programs, companies not only fulfil their ethical obligations but also position themselves for sustained success in an ever-evolving business landscape. For those seeking to implement or enhance their outplacement services, partnering with experienced providers like MSS - The HR People can ensure a compassionate and effective approach to workforce transitions. With over 35 years’ experience advising and supporting Irish businesses across all sectors, MSS offers tailored outplacement support designed to prepare individuals for future employment opportunities.
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