National Employment Rights Authority (NERA)
Background
The National Employment Rights Authority (NERA) was set up to secure compliance
with employment rights legislation. Its main activities are providing information on
employment rights and monitoring employment conditions through its inspectors. It can
also enforce compliance and seek redress.
NERA was established on an interim basis in February 2007 as an office of the
Department of Enterprise, Trade and Employment. The Employment Law Compliance
Bill which is currently going through the Oireachtas, proposes to:
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Establish NERA on a statutory basis
Strengthen NERA's inspection and enforcement powers
Enable NERA inspectors to enforce employment permits legislation.
NERA Inspection Services
The Labour Inspectorate was originally set up to enforce Employment Regulation Orders
and Registered Employment Agreements under the Industrial Relations Acts 1946 –
2001. This is still forms a major part of the enforcement activity of the NERA inspection
services and this role is carried out together with the Labour Court
There are approximately 90 NERA inspectors carrying out inspections today and they are
now empowered to work with and exchange information with the Department of Social
and Family Affairs and the Revenue Commissioners in Joint Investigation Units.
NERA inspectors have carried out inspection campaigns focused on the construction
sector, the catering and security industries and on the legislation on minimum wage and
the protection of young people in employment.
The Inspection Services also have an enforcement role in relation to:
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The maintenance of records under the Organisation of Working Time Act 1997
Statements of wages or payslips under the Payment of Wages Act 1991
Complaints about pay and conditions of employment under the Protection of
Young Persons (Employment) Act 1996 and
The National Minimum Wage Act 2000
The Inspection Services have another function, which is to inspect and gather information
for others in the Department of Enterprise, Trade and Employment in relation to the
following Acts:
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Employment Agency Act 1971
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Protection of Employment Act 1977-2007
Protection of Employees (Employers' Insolvency) Acts 1984 to 2003
Carer's Leave Act 2001
Employees (Provision of Information and Consultation) Act 2006
Inspection Rules
Accurate records are required to prove that employees are treated fairly. Inspectors may
enter premises at reasonable times, interview employers and employees, take statements,
examine and take copies of records and initiate legal proceedings.
Inspections are carried out either to investigate a specific complaint or a team of
inspectors may carry out random or targeted inspections in a particular sector of
employment.
Generally the investigation proceeds in three stages as follows:
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Where an initial inspection of records finds that that there have been breaches of
employment law, the employer is instructed to correct this
A letter is then sent requesting evidence that the employer is complying with the
law as instructed
If there is no response or an inadequate response to the letter, a second inspection
follows together with a warning that any further or new breaches discovered will
be sent to the Department’s legal services to prosecute
The exception to the above procedures occurs where breaches of the Protection of Young
Persons (Employment) Act 1996 are found. These are referred for prosecution after a first
inspection.
NERA Inspectors undertake both “announced” and “unannounced” inspections. Don’t
believe that you will always have time to prepare for a NERA inspection.
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In the case of 'announced inspections', the inspector will contact the employer by
letter or telephone to advise the employer that it is intended to carry out an
employment rights compliance inspection on their business and to make the
necessary arrangements for undertaking the inspection.
In the case of unannounced inspections, the inspector presents at the place of
business and seeks the production of appropriate records.
The Inspection
Employers who are compliant or endeavouring to be compliant have nothing to fear from
NERA. At the start of any inspection, the Inspector identifies themselves, shows their
authorisation, which includes photographic identification, and will explain the purpose of
the inspection. The inspector will:
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Ascertains the name(s) of the person(s) who keeps and updates the records
Examines the records to establish that they are in compliance with the relevant
employment rights legislation
Determines the rates of pay in respect of each employee from the rosters and the
wages records presented
Informs the employer during the course of the inspection of any breaches of the
legislation identified
May interview employees.
An Inspection will typically last 2-3 hours. The duration depends on a number of factors
including the size of the business and the volume and quality of the records.
The following list sets out the standard records which an inspector will require access to
during the course of an inspection. However, it is important to note that there is no full
list of everything they require: 1. Employer registration number with the Revenue Commissioners
2. Full Name, Address and PPS Number for each employee (full-time and part-time)
3. Terms of employment for each employee
4. Payroll details (Gross to Net, Rate per hour, Overtime, Deductions, Shift and other
Premiums and Allowances, Commissions and Bonuses, Service Charges, etc.)
5. Copies of Payslips and corresponding payment records
6. Employees’ job classification
7. Dates of commencement and where relevant, termination of employment
8. Hours of work for each employee (including starting and finishing times, meal breaks
and rest periods). These may be in the form of Form OWT1 (or in a form substantially to
like effect).
9. Register of employees under 18 years of age
10. Whether board and/or lodgings are provided and relevant details
11. Holidays and Public Holiday entitlements received by each employee
12. Any documentation necessary to demonstrate compliance with employment rights
legislation
Additional records may be required to be held depending on the sector/business involved
and the legislation under which the inspection is being conducted.
After the inspection has concluded, NERA Inspection Services will contact the employer
in writing to advise them of the outcome of the inspection.
Joint Investigations
NERA Inspectors will join with the Department of Social and Family Affairs and the
Revenue Commissioners to work together in Joint Investigation Units (JIUs). The role of
the JIUs is to address areas where evidence suggests that non-compliance exists.
Relevant employment data can be exchanged between the Revenue Commissioners, the
Minister for Social and Family Affairs and the Minister for Enterprise, Trade and
Employment. This exchange of information enhances day-to-day inspectorate,
prosecution and enforcement activity within NERA. NERA Inspectors have also taken
part in joint investigations with the Department of Social and Family Affairs and
Revenue Commissioners inspectors, and will continue to undertake such inspection in the
future.
Penalties:
When the Employment Rights Compliance Bill is enacted later this year, penalties and
fines will be increased substantially. There will be up to €5,000 fine and or 12 months
imprisonment for summary offences and up to €250,000 and or 3 Years imprisonment for
indictable offences.