Following the recent High Court Case new proposals in relation to JLC/REA's have been made by the government:
24-Nov-10 at 18.17 | Resolve HR Admin
Following today's decision to reduce the Minimum Wage rate to €7.65. The Government has signalled that the ERO and REA rates should be reviewed. In particular the Catering,...

News

Sep 2, 2009

NERA Inspection update.


Despite the economic downturn NERA has remained very active in the first half of 2009 and they have recently published their quarterly report summarising their activities for the first six months of 2009.

 

To the end of June 2009, NERA inspectors carried out a total of 10,445 calls, interviews and inspections, 18% of cases revealed some form of breach. Unpaid wages totalling €1,131,224 were identified and orders made to employers regarding payment of arrears. This compares with almost €1 million in the same period of 2008.

A summary of their inspections by sector is outlined below:

 

Sector

No. of Inspections

Wages Arrears Discovered

Agriculture

25

€75,508

Catering

203

€394,342

Retail Grocery & Allied Trade

133

€131,162

Hotels

49

€30,533

Contract Cleaning

155

€77,007

Security

22

€40,742

Construction

163

€137,323

Electrical REA

5

€9,309

Other

52

€42,537

 

It is interesting to note that inspections in relation to the Electrical REA are considerably lower then in other sectors. Given the recent strike and the ongoing dispute regarding the legality of the REA NERA has obviously decided to steer clear of the sector until the legal issues are resolved. Click here Blog for more information on this situation.

 

The above figures do not include inspections made in relation to employment permit compliance, which NERA commenced in July. It will be interesting to see the level of non-compliance and what approach NERA adopt in relation to non-compliance. Under legislation failure to comply with work permit legislation can result in:

 

  • A fine up to € 3,000 and/or up to 12 months in prison on summary conviction.
  • A fine up to € 250,000 and/or up to 10 years in prison conviction on indictment.

 

These figures are per breach and are applicable to both the employer and the employee!!

Other interesting figures from the report include that 29 cases were referred to NERA's panel of external solicitors for prosecution. This generally happens where a breach of employment rights legislation has been identified during an inspection and where the employer fails to rectify the matter, or where breaches of the Protection of Young Persons (Employment) Act 1996 have been detected. NERA can also bring proceedings for the purposes of enforcing awards of both the Labour Court and the Employment Appeals Tribunal and 36 new cases were commenced in 2009.