(A similar version of this article first appeared on our Irish website here: Banded Hours Ireland.)
In our previous article, Zero Hour Contracts, we highlighted the impact of an Irish Zero Hour Contract ban on employers in Ireland and payroll professionals, which would come into effect if the bill “Employment (Miscellaneous Provisions) Bill 2017” passes in its current state. In addition to this we noted that a crucial aspect of the bill would also be enforced, called “Banded Hours”. This Banded Hours provision will also have a significant impact on employers in Ireland and payroll professionals.
Continue reading to find out what Banded Hours are, the proposed bands, how to find the correct band, how to change between bands, when an Irish employer can refuse to change an employee’s band and find 8 key new requirements for payroll professionals and employers in Ireland.
What is “Banded Hours”
Banded Hours is a provision in the proposed Employment (Miscellaneous Provisions) Bill 2017. Banded Hours refers to the groups / bands of weekly working hours and legislation that the bill proposes. If this bill passes in its current state, employees in Ireland on low-hour contracts will be entitled to be placed on a band of working hours if their contract does not specify and reflect the number of working hours that they typically work each week. The band that the employee falls under will be ascertained by averaging the weekly working hours for a period not less than 18 months. Employees in a band are essentially guaranteed the minimum number of hours in that band.
Currently, as of writing, the Employment (Miscellaneous Provisions) Bill 2017 is before Dáil Éireann, in the Second Stage – view the current status of the bill here: status of Employment (Miscellaneous Provisions) Bill 2017.
What Are the Proposed Banded Hours in Ireland?
The bands of weekly working hours are broken into 4 groups / bands as follows:Band / GroupFrom (hours)To (hours)A110B1124C2534D35Over 35 hours
How Can Employees in Ireland Change Between Bands?
If an employee in Ireland believes that they are in an incorrect band a request must be made to the Irish employer in writing. If employees are unhappy with their band and the employer refuses to change their band a claim can be lodged with the Workplace Relations Commission (WRC) in accordance with Part 4 of the Workplace Relations Act 2015. The employer or employee can appeal a decision to the Labour Court in accordance with the Workplace Relations Act 2015 (Section 44).
When Can An Employer in Ireland Refuse A Banded Hour Adjustment Request?
According to the proposed Employment (Miscellaneous Provisions) Bill 2017, an employer in Ireland may refuse to place an employee on the band requested:
“(a) where there is no evidence to support the claim in relation to the hours worked in the reference period,
(b) where there has been significant adverse changes to the business, profession or occupation carried on by the employer during or after the reference period,
(c) in circumstances to which section 5 applies, or
(d) where the average of the hours worked by the employee during the reference period were affected by a temporary situation that no longer exists.”
(Source: oireachtas.ie)
8 Key New Requirements for Payroll Professionals and Employers in Ireland
Below we have identified 8 key new duties that employers in Ireland, and specifically payroll professionals, would/could be responsible for if the bill passes in its current state:
- Determine the correct band for appropriate employees in Ireland - to do this, find their average weekly working hours for a period of 18 months or more and place them in the corresponding band (see table above)
- Ensure each employee in Ireland works at least their minimum working hours or compensate appropriately
- Determine if a banded hour request change should be approved or denied
- Place the employee, if appropriate, in the correct band within 2 months of their request
- Put a case together for the denial of a banded hour request change
- Manage band request communications and potential conflicts, including WRC inspections if necessary
- Ensure all banded hour employer obligations in Ireland are met, for more details visit the Banded Hours section in the Employment (Miscellaneous Provisions) Bill 2017
- Develop and implement banded hours contracts.
Legislation Compliance – Focus on Profits
Here at Paycheck Plus we understand that ensuring compliance with the most up-to-date legislation changes is a difficult and time consuming task for most businesses – we know that you would rather focus on profits over legislation changes and paperwork, this is why we provide complete and comprehensive services. As well as fully managed payroll outsourcing, we provide an extensive range of payroll related services including consultancy, audits, reporting, training, payroll set-up and wind-down, and special projects. We stay of the forefront of legislation developments so you don’t have to.
To ensure compliance with the most up-to-date legislation developments and for expert support contact Paycheck Plus today.
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