The National Employment Rights Authority (NERA) currently has in place a team of 77 inspectors. They are all employed under the standard terms and conditions governing civil servants in general. Inspectors are entitled to receive travel and subsistence in respect of expenses necessarily incurred in the performance of their official duties.
There are no proposals at present to increase the number of inspectors. The Minister for Finance has recently introduced a moratorium on the filling of vacancies in the Public Service until the end of 2010, which will impact on NERA in common with all other public bodies.
The total costs, comprising pay and travel and subsistence costs, in relation to activities and operations of NERA's Inspection Services are set out in Table 1. It has not been possible, in the time available, to apportion other non-pay costs between the different services within NERA.
Data in relation to inspection activity is currently maintained on a case basis and information in relation to the number of unique employers visited is not readily available. The data provided in Table 2 below represents an indicative estimate by NERA of the number of employers visited.
The inspection process includes calls, visits and inspections in respect of each case. In 2008 a total of 27,900 were carried out. The figure to date in 2009 is 10,445. NERA inspectors have an enforcement role under aspects of the following legislation:
Industrial Relations Acts 1946-2004 — (1) Employment Regulation Orders (Joint Labour Committee system) and (2) Registered Employment Agreement system,
The National Minimum Wage Act 2000 –
Protection of Young Persons (Employment) Act 1996 –
Organisation of Working Time Act 1997
Payment of Wages Act 1991- statement of wages aspect only.
Carer's Leave Act 2001
Employment Agency Act 1971
Protection of Employment Act 1977
Protection of Employees (Employers' Insolvency) Acts 1984 to 2003
Parental Leave Act 1998 (Department of Justice, Equality and Law Reform).
Employees (Provision of Information and Consultation) Act 2006
NERA will shortly be commencing inspections under the Employment Permits Acts 2003 and 2006.
In the course of 2008, prosecution proceedings were initiated by NERA in 70 cases. Proceedings were concluded in 88 cases, which included cases initiated in 2007. Convictions were obtained in 41 cases while in the balance of 47 cases the breaches were rectified before the court hearing or the cases were withdrawn or struck out.
In the course of 2009 to date prosecution proceedings have been initiated by NERA in 29 cases. Proceedings were concluded in 59 cases. Convictions were obtained in 13 cases while in the balance of 46 cases the breaches were rectified before the court hearing or the cases were withdrawn or struck out.
NERA inspections indicate a very broad variance in the level of compliance with employment legislation. The level of compliance ranges from over 90% in Protection of Young Persons and National Minimum Wage to 55% in respect of Organisation of Working Time Act and is as low as 15% in relation to compliance with some Employment Regulation Orders. It would appear the higher the level of awareness the higher the compliance level. This supports the view that most employers want to comply with employment law.
Some of the more serious illegal practices NERA has uncovered include:
Failure to pay the appropriate rate;
Falsifying records including payslips and timesheets;
Paying employees for significantly fewer hours than they actually worked;
Making unlawful deductions from employees wages;
Failure to keep records;
Failing to produce any records for inspection;
Not providing employees with payslips/statement of wages;
Providing documentation that purports to show arrears of wages have been paid to employees when this is not the case;
Inadequate public holiday/annual leave provision.
Table 1: NERA Inspection Services Costs, 2008 and 2009 (to end June)
Category
|
2008
|
2009 (to end June)
|
|
€000s
|
€000s
|
Pay
|
4,813
|
2,430
|
Travel & Subsistence
|
914
|
243
|
Total
|
5,727
|
2,673
|
Table 2: Estimate of Number of Employers visited by NERA in 2008 and 2009 (to end June)
Region
|
Regional HQ
|
No. of Employers Visited
|
|
|
2008
|
2009 (to end June)
|
South East
|
Carlow
|
3,287
|
1,230
|
South
|
Cork
|
1,339
|
372
|
North East
|
Dublin
|
3,080
|
894
|
West
|
Shannon
|
1,318
|
827
|
North West
|
Sligo
|
1,065
|
239
|
Totals
|
|
10,089
|
3,562
|