2 0 2. Retirement Ages & Auto Enrolment 1 3. Independent - - PDF document

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C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Review of the Year 2019

Jennifer Cashman Employment Group

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Overview

• 1. Working Time Developments
• 2. Retirement Ages & Auto Enrolment
• 3. Independent Contractor Arrangements
• 4. Family Leave and Budget 2020

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C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Working Time Developments

European Communities (Organisation of Working Time) (General Exemptions) (Amendment) Regulations 2018. Exemptions from certain categories of the 1997 Act now apply to those engaged in “the caring for or the rearing or the breeding or training of racehorses”.

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Working Time Developments

• WRC has reported that 13% of complaints received last year related

to working time.

• CCOO v Deutsche Bank SAE - 14th May 2019.
• “objective, reliable and accessible system enabling

the duration of working time worked each day by each worker to be measured.”

• Any "economic considerations" or costs

associated with putting such a system in place cannot undermine the "effective protection of the safety and health of workers

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Working Time Developments

• Right to Disconnect?
• EU Directive on Work-Life Balance.
• Right to request flexible working – legislation required

before August 2022.

• Four day working week?

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Retirement Ages

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Retirement Ages - Context

• National Risk Assessment 2019.
• Ireland – significant risk – ageing population.
• Pension related expenditure – increasing spending falling to

a diminishing share of the population.

• Number of persons at State pension age and older will more

than double from 586,000 in 2015, to 1,402,000 by 2055.

• Ireland also has a very low level of private pension coverage

– 35% of private sector.

• Importance of policy responses.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Law Relating to Retirement Ages

• Public Service Superannuation (Age of Retirement) Act

2018.

• Employment Equality Acts – s. 34(4).
• Equality (Miscellaneous Provisions) Act 2015.
• Concept of “objective justification”.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Retirement Ages

Willis Towers Watson - Retirement Age Survey - February 2019.

• Intergenerational fairness (allowing younger workers to progress)

5%.

• Motivation and dynamism through the increased prospect of

promotion 39%

• Health and safety 50%.
• Creation of a balanced age structure in the workforce 39%.
• Personal and professional dignity (avoid incapability issues with
• lder employees) 30%.
• Succession planning 71%.

Objective Justifications

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Case Law Examples

A Gatekeeper v A Rail Company – January 2019

• Contract stated retirement at age 70.
• Subsequently joined the pension scheme – retirement

at 66.

• Complainant was part of the national negotiating

committee.

• Upset and poor communication referenced.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Case Law Examples

Judy Bamford v Citizens Information Phone Service Limited – May 2019

• Contract, policy and handbook – 65 years.
• Facility to seek extension to 66 years.
• Refused – promotional prospects.
• Appeal – one year fixed term contract.
• Claim failed – due to documentation and acceptance of

fixed term contract.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Case Law Examples

Sales Advisor/Mechanic/Department Manager v DIY Electrical Retailer – May 2019

• 65 years retirement – pension docs.
• General health and safety concerns – profound.
• €18,000 compensation for age discrimination.
• Adjudicator ordered the Respondent to incorporate and

honour the terms of the WRC’s Code of Practice on Longer Working, into the Staff Handbook within three months of the decision.

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Case Law Examples

James Peter Maloney v Ability West CLG

• CV, driving license and his driving qualification card - 65 years of age.
• The Complainant was successful in his application and accepted the
• ffer for the position in June 2017.
• Vetting Form – Respondent realised age and revoked offer.
• Policy does not permit people to work beyond 65.
• Health and safety concerns – rejected.
• No knowledge – no legitimate expectation.
• Not provided with any evidence which would suggest that the driver’s

ability to cope in such situations is impacted by age.

• If objective justification exists to support the application of age

restriction in relation to the position on offer, then these should be transparent and advised to all potential applicants at the outset

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Case Law Examples

Michael Fox v. Tedcastles Aviation Fuels Limited

No explicit contractual arrangement between the Respondent and the Complainant with regard to an established retirement date Adjudication Officer accepted that the explanatory booklets and investment guides in relation to the pension scheme were provided to the Complainant

• n a number of occasions;

Noted that they were of such a “technical nature” that it would be unreasonable for the Respondent to suggest that the Complainant should have understood that a mandatory retirement age of 65 was in existence and that this would apply to him.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Auto Enrolment

Roadmap for Pensions Reform 2018 – 2023 Ambitious five year pension’s roadmap Automatic Enrolment Scheme (the “Scheme”) by 2022 On 22 August 2018, Minister Doherty launched a public consultation process More than 100 written responses

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Auto Enrolment

Begin the process earlier Include lower earners Include over 60’s Standardise tax relief Lower the contributions Include the self- employed and home makers

Common Themes

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Auto Enrolment

Summary of progress in the design of an Automatic Enrolment Retirement Savings System for Ireland and next steps - October 2019.

• Employees aged between 23 and 60, who earn more than €20,000 a year
• Employees who are members of the AE system will initially contribute a minimum
• f 1.5% of gross earnings – that is, earnings before tax and PRSI deductions – for

the first three years.

• The contribution rate will increase by 1.5 percentage points every three years, to a

maximum contribution rate of 6% at the beginning of year 10.

• Employers will be required to make a matching (tax deductible) contribution on

behalf of the employee at the specified contribution rate.

• The employer contributions will be limited to a qualifying earnings threshold of

€75,000, which will be reviewed over time.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Auto Enrolment

Central Processing Authority Investment framework The pay-

• ut phase

The State financial incentive

The Central Processing Authority (and linked to this, the functions to be undertaken by the Registered Providers) The investment framework and funds to be offered by Registered Providers (including, importantly, the design of the default fund)

There are four main areas where work is continuing in order to produce design

• ptions for Government to consider.

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C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Key TakeAways

Keep your retirement age under review Consider and review your

• bjective justification

Communication is key!

Use the WRC Code of Practice on Working Longer Develop and review your policies Consider fixed term contracts Be Consistent!

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Independent Contractors

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Independent Contractors

Organisation of Working Time (Workers Rights and Bogus Self-Employment) (Amendment) Bill 2019. HotFoods v. Revenue Commissioners It seems to me that where it can be established that a driver carries out a service which the business was established to provide, the work of the drivers is integral to the business and is not merely accessary to it. The integral nature of the work of the drivers to this business raises the implication that in ordinary course they would be employees. B v. Yodel Network Limited - UK – referred to CJEU.

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C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Protective Leave Developments

Parents Leave and Benefits Act, 2019

• Paid parents leave – 2 weeks

during 1st year.

• 6 weeks notice.
• Postponement by employer –

not more than 12 weeks. Parental Leave (Amendment) Act, 2019

• Increases period of parental

leave – from 18 weeks to 22 weeks (2019) and 26 weeks (2020).

• Increases age of child – from 8

to 12 years.

• Retain records for 12 years.

C O R K D U B L I N G A L W A Y L O N D O N W W W . R D J . I E

Budget 2020 & Finance Bill 2019

Minister Regina Doherty – €2m allocated to develop specific activation initiatives for particular groups “distant from the labour market”. “Returnships”. Women Returners - London, Edinburgh and Dublin.

https://assets.publishing.ser vice.gov.uk/government/upl

• ads/system/uploads/attach

ment_data/file/685064/Retu rner_Programmes_- _Best_Practice_Guidance_fo r_Employers.pdf

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Questions?