Employer Resources Newsletter - October 2024

Article updated for clarity at 2.15pm on 21 Oct

The data from Adare’s recent HR Barometer Series 8.2 reveal that the top priorities for Irish organisations heading into 2025 centre around enhancing employee engagement and experience (51%), retaining talent (48%), and strengthening talent acquisition (25%). 

The numbers reflect the competitive labour market that Irish organisations are operating in and highlight how employers are responding by adopting a more strategic approach to employee engagement and communication. 

Organisations that prioritise strategic HR initiatives which focus on employee well-being, clear career pathways, and the development of a supportive and transparent workplace culture will put themselves in a stronger position to enhance employee engagement levels, productivity, and retention rates. 

What is Employee Engagement? 

Employee engagement is a measure of how enthusiastic and involved employees feel in their workplaces. Organisations that incorporate employee feedback into workplace operations for example are more likely to have a more engaged workforce. Alternatively, if employees have no control or influence over their work or their work environment, they are less likely to feel connected to their workplace and are more likely to experience burnout. Engaged employees are more productive, enjoy greater job satisfaction and contribute to greater overall workplace morale. Organisations that focus on fostering employee engagement are therefore likely to experience better business outcomes. 

How to Foster Employee Engagement

1. Promote Work-Life Balance

   One of the most effective ways to boost employee engagement is to promote work-life balance initiatives. In the modern fast-paced work environment, employees are exposed to the risk of work-related stress and may need support maintaining an appropriate level of work-life balance. Employees experiencing stress or burnout out are more likely to leave their jobs. Promoting a workplace culture that values work-life balance can therefore significantly improve employee satisfaction and retention rates. Organisations should examine what work-life balance initiatives would be most appropriate for their operations and monitor the impact on job satisfaction and retention rates.

2. Clear Career Pathways
   
   Employees who feel stagnant in their roles are more likely to look for opportunities elsewhere. Career development pathways that provide clear opportunities for advancement are a powerful tool in a retention strategy. Employees who have career goals that are aligned with their organisation’s growth plans are more likely to make long-term commitments. HR strategies in this area can include collaborating with employees on the development of individualised career development plans or developing opportunities for learning, mentorship, and skill-building. High-potential employees might benefit from seeing a clear pathway into a leadership role. This approach ensures that the organisation has a strong leadership pipeline, and that talented employees see a long-term career pathway. Organisations should also examine the feasibility of investing in continuous learning and development. Employees who receive support towards their professional growth through upskilling and reskilling are more likely to remain with their organisation, reducing turnover related to career dissatisfaction.
    
3. Develop a Supportive and Transparent Workplace Culture
   
   Employees who feel well-informed and involved in their organisation's direction are more likely to feel a sense of ownership and connection to their employer. To develop a more supportive and transparent workplace culture, organisations could consider holding regular company-wide meetings where members of the leadership team share recent business updates, performance metrics, future growth plans and importantly how employees can contribute and benefit from achieving the stated goals. These meetings should be a two-way conversation where employees have an opportunity to ask questions and provide feedback. In larger organisations, it may be necessary to rely on employee surveys. Employee surveys help to identify current needs, concerns, and satisfaction levels. An employee survey is only effective if management take action to respond to any trends in the survey data. This is a vital step to demonstrate that leadership is actively listening and responding to employee concerns. Organisations that provide transparent career pathways to promotions, pay rises, or alternative roles within the business are likely to have employees who fully understand how they can develop their career by moving up or across. Committing to transparent communication helps to build trust between management and employees. Employees who feel informed and heard are also more likely to remain engaged in the long-term which will help to reduce turnover rates.

Focus on Employee Engagement to Boost Retention

Improving employee retention rates by focusing on engagement requires a comprehensive HR strategy that creates a workplace where employees feel valued, supported, and motivated to contribute in the long-term.

Ultimately, an engaged workforce leads to lower turnover, higher productivity, and a more resilient and successful organisation. Business leaders should continuously review and refine their engagement strategies to meet the evolving needs of their employees and any changes to the workplace or operations.

Businesses aiming for long-term success must adopt a strategic mindset around their HR activity. HR professionals must be equipped to think strategically, use data effectively, and continuously innovate to meet the changing needs of the business and its workforce. This strategic approach to HR will contribute to building an engaged, resilient, and agile workforce that is capable of achieving sustained long-term success. 

Adare is a team of expert-led Employment Law, Industrial Relations and best practice Human Resource Management consultants. If your organisation needs advice, support, or guidance about compliance requirements or any HR issues, please contact Adare to learn what services are available to support your organisation.

Dublin Office: (01) 561 3594 | Cork Office: (021) 486 1420 | Shannon Office: (061) 363 805

info@adarehrm.ie | www.adarehrm.ie

Respondent ordered to pay €63,000 in unpaid wages and commission after unfair dismissal claim

Background

The Complainant started working with the Respondent in August 2022 on a fixed-term contract that ended on December 31, 2023. In November 2023, she applied to renew her visa, which was connected to her Irish fiancé, and took a holiday to Brazil. When she returned in January, she was unexpectedly dismissed without a chance to explain her situation or appeal the decision, even though she had informed the Respondent that her visa renewal was in progress. She was not given any opportunity to clarify her visa status before being let go, which caused her emotional distress. Since then, she has actively searched for jobs in Ireland and Portugal but had not yet been successful at the time of her complaint.

The Respondent's Payroll Administrator testified that the Complainant mentioned in November 2023 that her visa was expiring and that she had an immigration meeting scheduled after the expiry date. With no HR department, the Office Manager learned the Complainant’s visa had expired on January 23rd and sought legal advice on employing someone without a valid visa, leading to her dismissal a few days later. The Complainant’s visa was renewed on January 28th, during her notice period, but the Respondent admitted she was not given a chance to appeal or update them on her visa renewal before being dismissed.

Summary of the complainant’s Case:

The Complainant began working with the Respondent on August 2, 2022. She was given a fixed-term contract ending on December 31, 2023, but continued working into January. The Complainant enjoyed her time with the company. For the last seven months of her contract, she also worked in the Dublin office.

The Complainant’s visa was linked to her fiancé. On November 20, 2023, she applied to renew it. To renew this type of visa, the Complainant had to prove that she had lived with her Irish partner for two years, submit her passport, and provide other documents. Every year, her partner must also attend the renewal appointment to confirm their relationship. She applied early to avoid delays, confident the visa would be renewed as they were engaged and had applied for a mortgage in Ireland.

In November, the Complainant discussed her visa situation with the Respondent, who assured her it would be fine. She then took a holiday to Brazil and got engaged on December 31, 2023. When she returned in January, she worked as usual during the week of the 20th. However, an employee of the Complainant followed her to her car and handed her a letter, informing her she was being let go. She explained that her visa was set to be renewed that Sunday, as detailed in her November 20th email. Despite this, she was told to collect her belongings and leave immediately. She received no further communication and was not given a chance to explain her situation or appeal the decision.

Since then, she has been searching for a new job in various industries, including fashion, food, toys, and homewares, and has also applied for jobs in Portugal. However, she has not yet found employment.

Summary of the respondent’s Case:

The Complainant started in August 2022 and provided her passport and visa at that time. In November 2023, the Complainant mentioned her visa was about to expire and that she had an immigration meeting scheduled, but it would be after the visa had expired. Nothing more was discussed, and the Payroll Administrator, who had a good relationship with the Complainant, didn’t inform anyone else about the visa issue, as there was no HR department to handle such matters.

The Office Manager and finance employee gave his testimony. He discovered that the Complainant’s visa had expired on January 23, 2024. After seeking legal advice about employing someone without a valid visa, a decision was made to dismiss the Complainant. Her visa was renewed on January 28, within her notice period, but the Office Manager admitted he never asked her about the visa renewal or discussed it with her. The dismissal letter did not provide an opportunity to appeal, and no further actions were taken before dismissing her.

The Complainant claimed she had told the Respondent her visa would be renewed on Monday and even offered to stay home until it was confirmed. The Office Manager didn’t recall this conversation but acknowledged that emotions were high at the time. When the Complainant asked why she was allowed to work on the 24th and 25th if her visa had already expired, the Office Manager explained they were still seeking legal advice on those days and didn’t fully understand the seriousness of employing someone without a valid visa.

Findings and Conclusion

The Complainant, originally from Brazil, had been living and working in Ireland for six years with an IRP card, which she renewed annually. She previously worked for Zara and Gucci in Dublin. In 2023, she applied to renew her visa on November 20th, before it was due to expire on January 23rd. She discussed this with the Payroll Administrator, and the Complainant was confident her visa would be renewed, especially as she met all the criteria and her situation had improved—she was now engaged to an Irish citizen and had applied for a mortgage.

The Respondent reviewed her file on January 23rd and realized her visa was expiring that day. The Office Manager allowed her to work on January 24th and 25th while seeking legal advice, though he was aware of the risks of employing someone without a valid visa. However, he was not informed of the eight-week grace period allowed by the Department of Justice for employees awaiting visa renewal.

The Department of Justice had issued guidance allowing employees to continue working for up to eight weeks after their IRP card expires, provided they had applied for renewal before the expiration date. Despite this, on January 25th, The Office Manager dismissed the Complainant, handing her a letter and stating it was because her visa had expired. She informed him it would be renewed on January 28th, but he did not offer her an opportunity to appeal, nor did he discuss or investigate the matter before the dismissal.

It was determined that the Complainant met the criteria for visa renewal and had properly informed the Respondent. The dismissal was deemed unfair as the Respondent failed to follow any procedures and acted on incorrect information, which was readily available on the Department of Justice’s website.

The Complainant had since been unable to find new employment despite applying for various roles in fashion, food, toys, homeware, and even jobs in Portugal, her native language being Portuguese. The Complainant was earning €865.38 per week and has been out of work since January 25th, 2024. Given the circumstances, the Complainant has been awarded €25,000 under Section 7 of the Act.

Decision

Section 8 of the Unfair Dismissals Acts, 1977 – 2015 requires that the Adjudicator make a decision in relation to the unfair dismissal claim consisting of a grant of redress in accordance with section 7 of the 1977 Act.

The Adjudicator awarded the Complainant €25,000 compensation.

Our Commentary:

Understanding employment rights is essential for employers, particularly in light of the Unfair Dismissals Act 1977. It is crucial to recognize the significance of fair procedures, notice periods, and just cause for termination, as these elements are fundamental to maintaining a legally compliant workplace.

To avoid potential legal repercussions, employers should establish a robust human resources process, even if a formal HR department is not in place. This involves creating clear and accessible procedures for managing employee matters, particularly those related to visa renewals and contract extensions. 

Furthermore, it is important to ensure clear understanding of visa regulations. Employers must stay informed about all relevant guidelines, including renewal grace periods. A misinterpretation of these regulations can lead to unjustified dismissals and significant liabilities for the company.

Maintaining open communication with employees is equally important. Fostering transparent dialogue regarding visa status, renewal processes, and any concerns that could impact employment helps to build trust and mitigate misunderstandings.

In addition, employers should always provide opportunities for representation. This means offering employees the chance to defend themselves, especially in situations concerning immigration status or employment termination. 

To further safeguard fairness, employers should adopt a fair appeal process. It is essential that employees who are dismissed have the opportunity to appeal decisions, particularly in complex cases involving immigration or contractual issues. 

Thorough documentation of all actions is also vital. Keeping meticulous records of employee interactions, including discussions about visas, investigations, and any legal advice received, will help demonstrate procedural fairness and protect the employer’s interests.

Lastly, seeking legal advice proactively is critical. Employers should ensure that they obtain legal counsel well in advance of taking any action to verify employee status. Additionally, it is important to verify this advice against official resources to ensure compliance with the law.

World Mental Health Day 10 October

World Mental Health Day falls each year on October 10th, and the official theme for 2024 is ‘It’s Time to Prioritise Mental Health in the Workplace’. One of the key findings from Adare’s HR Barometer Series 8.1 was that mental health was the most commonly cited reason for short-term absences by employees. In addition, one in three respondents in our survey noted an increase in short-term absence due to work-related stress. Against this backdrop, let’s take a look at how organisations can prioritise mental health in the workplace.

Identify Causes of Workplace Stress

Common workplace stressors include excessive workloads, unclear expectations, failure to resolve grievances and poor communication. From a HR perspective, management must assess organisational practices to identify and mitigate any of these unnecessary stress points. Remedies may include refining job roles to ensure manageable workloads, improving processes for clearer communication, implementing efficient grievance procedures and setting realistic performance targets. By tackling workplace stressors, organisations can help foster a more productive work environment that minimises mental health risks.

Encourage Work-Life Balance

An imbalance between an employee’s work-life and personal life is one of the leading causes of stress and burnout. organisations should ensure that employees receive regular rest and that operations support a healthy work-life balance. Flexible working hours, remote work options, and promoting “time-off without guilt” will encourage employees to take regular breaks, use their annual leave, and disconnect after work. These are simple but effective steps that will help reduce burnout and stress.

Hold Regular Wellbeing Surveys

To better understand the mental health status of employees, HR teams or management should consider holing regular anonymous wellbeing surveys. Gathering feedback will help identify areas of concern and allow leadership teams to take targeted actions to address any risks. Regularly assessing the wellbeing of employees not only helps track progress but also signals to employees that their mental health is a priority.

Promote Physical Wellbeing

Physical health and mental health are closely linked. Encouraging physical activity within the workplace is an excellent way to boost employee mental health. organisations can offer fitness memberships, yoga sessions, or walking meetings to encourage employees to be more active. HR can also provide ergonomic tools and tips for employees to create comfortable workspaces, which helps reduce stress and discomfort, especially for remote workers.

Train Management to Identify Mental Health Problems

Managers are often the first point of contact when employees are struggling. Equipping managers with the skills to recognise signs of anxiety, depression, or burnout is critical. Consider arranging training for managers that arms them with the tools to approach sensitive conversations, understand appropriate boundaries, and direct employees to further support when needed. A manager who listens without judgment and who can provide guidance can make a significant difference to an employee who may be struggling with a mental health issue.

Mental Health Resources

Many organisations support employees by providing mental health supports like employee assistance programmes that provide counselling and other supports. There are also wellness apps available that help Employees with stress management, mindfulness and resilience.

Raise Awareness: A Joint Commitment to Mental Health

World Mental Health Day serves as an opportunity to raise awareness around mental wellbeing in the workplace. To make more enduring progress in this area, organisations should ensure that mental health initiatives are not forgotten about after World Mental Health Day. When HR professionals and business owners take active steps to promote mental health, it helps to create a culture where employees feel valued, understood, and supported. This investment in mental health not only benefits individual employees but also enhances overall organisational performance, fostering a more engaged, resilient, and productive workforce.

Forthcoming Legislation

The Government has published its Legislation Programme for the Autumn 2024 session which includes the following employment-related Bills:

• Maternity Protection (Amendment) (Miscellaneous Provisions) Bill
• Employment (Restriction of Certain Mandatory Retirement Ages) Bill
• Protection of Employees (Employers’ Insolvency) (Amendment) Bill

Your Snapshot Summary:

The Maternity Protection (Amendment) and Miscellaneous Provisions Bill 2024 will allow mothers who require treatment for a very serious illness to postpone their maternity leave for a period of time as well as introduce restrictions on the use of non-disclosure agreements in the context of sexual harassment and discrimination.

The Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 will prevent employers from enforcing mandatory retirement ages that are lower than the state pension age (currently 66).

Finally, the Protection of employees (Employers’ Insolvency) (Amendment) Bill 2024 proposes making changes to the Protection of employees (Employers’ Insolvency) Act 1984 which sets out pay-related entitlements of employees working for an insolvent employer.

Your Need to Know:

The Autumn Legislation Programme for 2024 lists 29 bills for priority publication and 32 bills for priority drafting. Given the relatively short timeframe between publication of the Autumn programme and the Government’s term of office, it remains to be seen whether any of these bills will be enacted during the lifetime of this administration.