IRELAND Law and Practice Contributed by: Philip Tully, Emma Doherty, Alice Duffy, Simon Shinkwin and Marie McGinley, Matheson LLP
of the proposals at least 30 days before the first notice of redundancy is given. Statutory redundancy pay Statutory redundancy pay is currently two weeks’ pay for each year of service, plus one extra week’s pay. A week’s pay for these purposes is currently subject to a ceiling of EUR600 a week. For both ordinary dismiss - als and collective redundancies, it is commonplace for employers to offer employees an ex gratia pay - ment upon termination of employment in exchange for employees waiving all employment law claims against the employer. 4.5 Employee Representations The concept of employee representation under Irish law relates to both unionised and non-unionised employees and is derived from a number of statutory Any employee has the right to join a trade union, although trade unions may not legally compel employ - ers to recognise and negotiate with them. The degree to which trade unions may embark upon industrial action is regulated principally by the Industrial Rela - tions Act 1990. Employee representatives are appoint - ed by way of a secret ballot. Information and Consultation Representation In addition to any local representation arrangements (whether with trade unions or otherwise), employees may be entitled to representation in certain circum - stances as a matter of statute. This form of represen - tation can arise in transfers of undertakings, in collec - tive redundancy situations or where the employees are covered by a local or European-level works council. The Transnational Information and Consultation of Employees Act 1996 (as amended) (the “1996 Act”) requires undertakings with at least 1,000 employees in the EU and 150 or more employees in each of at least two member states to set up European works coun - cils to inform and consult with their employees on a range of management issues relating to transnational developments within the organisation. Under the 1996 Act, a special negotiating body (SNB) is established to negotiate with the employer. and non-statutory sources. Trade Union Representation
The Employees (Provision of Information and Con - sultation) Act 2006 obliges employers with at least 50 employees to enter into a written agreement with employees or their elected representatives setting down formal procedures for informing and consult - ing with them. The legislation will only apply if a pre - scribed minimum number of employees request it.
5. Tax Law 5.1 Taxes Applicable to Employees/ Employers
The primary Irish taxes applicable to employees and employers in the context of an employment relation - ship are income tax, pay-related social insurance (PRSI) and the universal social charge (USC). Income Tax Irish tax law generally imposes income tax on an indi - vidual where they are resident or ordinarily resident in Ireland in the year of assessment or if employment is exercised in Ireland in the year of assessment. An individual will be considered resident in Ireland in a year of assessment if they are present in Ireland for at least 183 or 280 days in that year and the preceding year when taken together (provided that the individual has been present for at least 30 days in each of these two years). An individual will be regarded as ordinarily resident in Ireland for tax purposes if the person has been resident in Ireland for three consecutive years immediately preceding the year of assessment. Different income tax rate bands apply depending on an employee’s circumstances. The current standard rate of income tax is 20%, which applies to the first EUR44,000 per year earned by a single person without children and to the first EUR53,000 per year earned by a married person or a person in a civil partnership. A higher 40% rate is applied to any remaining balance. PRSI PRSI is Ireland’s equivalent of social insurance or social security contributions. Subject to certain lim - ited exceptions, anyone employed in Ireland is gen - erally subject to PRSI and payments are generally collected by the employer through the PAYE system.
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