Battle to make firms pay compo

THE number of enforcement applications made to the employment rights watchdog has exploded in the past year as it chases firms for larger financial awards owed to employees.

Provisional figures from the National Employment Rights Authority (NERA) show that in the first 11 months of this year 134 enforcement cases were received, compared with just 48 for all of 2010.

In 2011, €835,372 was awarded to those successful in bringing a claim, often for back pay owed by employers. In 2010, the figure was just €271,253, of which €87,791 was recouped in 22 cases.

In June of this year alone 19 cases were received and awards totalling €122,000 were made.

NERA said there was no formal explanation for the increase. The Migrant Rights Centre of Ireland said many cases were being brought against firms that had exploited staff through poor pay and conditions. However, while a ruling may have been made awarding a sum of compensation, the person owed the money does not always receive it.

Migrant Rights Centre deputy director, Bill Abom, said the cases forwarded to NERA were “just the tip of the iceberg” and “more robust enforcement legislation” was needed to tackle the growing number of employees losing out on money they were owed.

Enforcement cases are brought to NERA in cases where the Labour Court has ruled money is owed but has not been paid.

Mr Abom said many cases did not go to NERA and were progressed through the courts.

As part of arrangements announced by Jobs Minister Richard Bruton, a new as-yet-unnamed body is due to assume responsibility for employment rights from NERA next year.

Mr Abom said: “My understanding is the overhaul of the laws will not address enforcement but will instead streamline the existing bodies. The Government has not come to grips with issues of enforcement.”