Rogue employers to face stiffer fines

Employers found in breach of employment laws could face fines of up to €250,000 or three years in prison, under new legislation…

Employers found in breach of employment laws could face fines of up to €250,000 or three years in prison, under new legislation proposed by the Government.

The Employment Law Compliance Bill, published today by the Minister for Enterprise, Trade and Employment Micheál Martin, gives legislative effect to provisions in the Towards 2016 national agreement which several unions set as a pre-condition for entering the forthcoming national pay talks.

Under the legislation, the new National Employment Rights Authority (NERA) will be established on a statutory footing.

The legislation also gives labour inspectors the power to prosecute rogue employers for the first time and allows them access to premises, personnel and employment data during their inspections.

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The inspectors will also be able to conduct investigations jointly with other agencies including Revenue Commissioners, Social Welfare inspectors and An Garda Síochána.

There are also provisions for greater penalties for offences arising under employment law including up to €5,000 and/or 12 months' imprisonment for summary offences and €250,000 and/or three years' imprisonment for indictable offences.

The provisions also include protection for "whistle-blowers" who report suspected breaches in the law.

The legislation, which has been approved by the Cabinet, stipulates that employers must keep comprehensive records of employment for the most recent three-year period which must be retained for a further two years after the employment contract ends.

Mr Martin described the legislation as "the most significant single piece of legislation introduced in the employment rights area in recent years".

He said the Bill is "a firm indication of this Government's commitment to the principles of social partnership".

"Compliance with all aspects of employment law will be strictly enforced including in the employment permits area, national minimum wage, registered employment agreements and protection of young persons in employment," he said.

Siptu this evening gave a guarded welcome to the Bill but said it needed more time to study its contents before giving a final verdict.

The union warned that it will not enter talks on a new national agreement unless legislation was delivered in full.

"Assuming that the Bill complies with the Towards 2016 agreement, and does not contain provisions that would be detrimental to trade unions, I would like to acknowledge that the Government appears to be honouring its commitment to significantly enhance the protection afforded to vulnerable people in the labour market and to workers generally", Siptu president Jack O'Connor said.