An employee who worked in a takeaway restaurant in Co. Cavan was recently awarded €154,828 by the Workplace Relations Commission (WRC), following multiple breaches of legislation by his employer.
The worker, a Chinese national who came to Ireland in 2022, regularly ended the week having worked up to 73 hours but with just €60 of wages in his pocket.
Key facts of the case: Employment permits, minimum wage, and equality legislation
The employee at the centre of this case regularly worked six or seven days a week and was required by his employer to pay approximately €30,600 in recruitment and work-permit fees. This is a practice which is strictly prohibited under the rules of the Irish work permit scheme.
Over the course of his employment, the employee received pay that was below the national minimum wage, was denied proper holiday pay and Sunday or public holiday pay and worked more than the weekly hours permitted under Irish legislation.
The WRC concluded that there had been multiple breaches of employment law and awarded the employee €154,828 in compensation and back pay.
What employers should learn from this case
This case highlights several critical compliance issues for employers. Charging or passing recruitment and permit fees to employees is not compliant with Irish legislation and permit regulations.
Employers should also ensure that working time limits and breaks are adhered to, and that wages are in line with the national minimum wage or any other sector-specific minimum rates of pay.
How to protect your business and your employees
To reduce risk, businesses should review recruitment practices and ensure that there are no unlawful deductions or fees included within that process. It is also important to conduct regular audits of working hours, wage records, and leave entitlements, to ensure that payroll systems accurately reflect current legal requirements and obligations.
Contracts of employment should be clear and transparent, and fully in line with the latest employment legislation. Pay rates and overtime provisions should be clearly set out in both the employment contract and any other relevant HR documentation, and all documentation should regularly be communicated to employees.
Those who employ staff who require employment permits should also ensure that workplace practices are conducted in such a way as to comply with Irish work permit legislation.
This case highlights the vital importance of compliant workplace practices. Failure to comply with employment legislation can result in major financial, legal, and reputational damage for your business. As well as protecting your employees, compliance is also crucial for protecting your business from significant fines and costly legal proceedings.