IBEC bids to reduce work claims

IBEC has launched a range of employment law compliance tools aimed at reducing the exposure of employers to as much as €7 million in annual claims by employees.

Director of industrial relations Brendan McGinty said the current legislation on compliance was “complex and often ambiguous” and he called on the Government to ensure regulation does not impede the ability of employers to run their businesses, particularly in the current climate.

“Full compliance with Ireland’s complex and often ambiguous legislation is difficult to achieve and the implications of non-compliance are costly to the employer, both monetarily and in terms of reputation,” he said.

“Employment law compliance issues cost businesses in Ireland more than €7m in 2008 in awards by the Equality Tribunal, the Employment Appeals Tribunal and by the National Employment Rights Authority.

“These figures substantially understate the cost of claims to employers as they do not include the cost of settlements, the legal costs of defending claims and the cost of settlements paid over by employers as a result of Labour Court or Rights Commissioners awards.”

Mr McGinty said IBEC believes it is now time to consider how to streamline the avenues for redress and reduce the risk of duplication of claims by employees.

“A clear distinction needs to be urgently drawn between industrial relations matters, which centre largely on grievances in the course of employment, and those associated with employment rights on termination of the employment relationship,” said Mr McGinty.

“It is important all labour regulation is subject to regulatory impact assessment with, particular reference to the impact on competitiveness, employment, unemployment and labour market flexibility. Now more than ever, we need common sense employment law, which is fit for purpose and supports enterprise.”

He said in IBEC’s recent Business Sentiment survey, 54% of companies reported a decrease of 19.3% in the total pay bill in the 12 months to the fourth quarter of 2009. “Looking ahead to 2010, 47% expect their total pay bill to remain constant and 33% expect it to decrease by an average of 15%. Some 73% of respondents expect to implement pay freezes,” he said.

Mr McGinty expressed serious concerns about many of the proposals in the Employment Law Compliance Bill and said IBEC is continuing to lobby Government for extensive changes.

“The lack of emphasis on local engagement as a means of resolving workplace difficulties is very disappointing,” he said.