Employment

HIGH COURT ORDERS RE-INSTATEMENT OF SCHOOL PRINCIPAL FOLLOWING "INDEFENSIBLE" DISMISSAL

A High Court decision has highlighted the significant importance of fair procedures throughout the disciplinary process. In An Bord Banistíochta, Gaelscoil Moshíológ v the Labour Court [2023] IEHC 484, the Court ordered the re-instatement of a primary school principal who had suffered a “terrible injustice” at the hands of his employer following his “…odyssey through the school disciplinary process, the unfair dismissal process, and the legal system.”

The decision of Mr. Justice Cregan was highly critical of the actions and processes followed by the Board of Management and its Chair, as well as the delays experienced in progressing the subsequent unfair dismissal claim through the Workplace Relations Commission and the Labour Court. The case is a reminder to employers of the importance of applying fair procedures throughout any disciplinary process and, in particular, to be mindful of the risk that any prejudgment of the issues can taint the entire process.

ENHANCED REPORTING REQUIREMENTS FOR REPORTABLE BENEFITS

Revenue recently published an update on enhanced reporting requirements that will come into effect from 1 January 2024: Enhanced reporting requirements from 1 January 2024 (revenue.ie)

Under the Finance Act 2022, employers will be required to report specified details of certain payments made to employees and directors on a tax free basis (“reportable benefits”).

Phase one of the new reporting requirement will apply where a payment falls within one of the following categories:

1. small benefit exemption,
2. remote working daily allowance,
3. travel and subsistence (including vouched and unvouched travel, vouched and unvouched subsistence, site-based employees and eating on site).

The requisite information must be reported to Revenue on a real-time basis. It has been indicated that the new reporting requirement will be extended to other types of benefits and payments made on a tax free basis. A commencement order is required to bring this new provision into effect.

CHANGES TO PIAB LEGISLATION FROM 4 SEPTEMBER 2023

The second phase of the Personal Injuries Resolution Board Act took effect on 4 September 2023. The Law Society Litigation Committee published a guidance note on the changes to the personal injury litigation (here).

The Committee advises that the main impact of the changes is that claims are now more at risk of being statute barred.

All applications to PIAB will have to accompanied by a medical report prepared by a medical practitioner. The report now needs to contain full detail of the nature and extent of the injuries allegedly sustained. Significantly, PIAB will now deem an application incomplete without a supporting medical report and time in relation to statute will continue to run.

PIAB has published an overview of the legislation changes here. Additional changes will be implemented later in the year to include the role of mediation.

CONSULTATION ON EUROPEAN WORKS COUNCIL DIRECTIVE

The European Commission recently launched the second-stage consultation of European social partners on a possible revision of the European Works Councils (EWC) Directive 2009/38/EC. It will continue until 4 October 2023. This consultation follows from the European Parliament calling for a revision of the Directive. Read more here.

The Commission notes that an update of the Directive could ensure that:

1. There are no unjustified differences in workers' information and consultation rights at transnational level. This would mean having one set of rules for all EWCs, to overcome the existing exemptions of certain companies from the common minimum requirements.
2. The process to set up the EWC becomes more efficient and effective. This would, for example, further streamline the process following the request by employees to set up an EWC, and remove risks of unnecessary delays or of lack of resources for employee representatives.
3. All EWCs can rely on an effective process for their information and consultation, as well as appropriate resources, for example by providing more certainty to the concept of transnational matters.
4. Member States enforce the Directive more effectively, for instance through effective, dissuasive and proportionate sanctions, as well as access to justice for employee representatives and EWC.

The Workplace Relations Commission Code of Practice on Employee Involvement in the Workplace provides a useful summary of the current position in Ireland in relation to employee information, consultation and participation rights (here).