IRELAND Law and Practice Contributed by: Philip Tully, Emma Doherty, Geraldine Carr, Simon Shinkwin and Carlo Salizzo, Matheson LLP
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 purpos - es is currently subject to a ceiling of EUR600 a week. For both ordinary dismissals and collective redundancies, it is commonplace for employers to offer employees an ex gratia payment upon termination of employment in exchange for the employees signing a compromise agreement that waives 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 and non-statutory sources. Trade Union Representation Any employee has the right to join a trade union, although trade unions may not legally compel employers to recognise and negotiate with them. The degree to which trade unions may embark upon industrial action is regulated principally by the Industrial Relations Act 1990. Employee rep - resentatives are appointed by way of a secret ballot. Information and Consultation Representation In addition to any local representation arrange - ments (whether with trade unions or otherwise), employees may be entitled to representation in certain circumstances as a matter of statute. This form of representation can arise in transfers of undertakings, in collective redundancy situa - tions 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 councils 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. The duration and functions of the SNB will be subject to the terms and purpose of the works council agreement put in place. The Employees (Provision of Information and Consultation) Act 2006 obliges employers with at least 50 employees to enter into a written agreement with employees or their elected rep - resentatives setting down formal procedures for informing and consulting with them. The legis - lation will only apply if a prescribed minimum number of employees request it. The legislation is silent on how employee representatives are elected, and it will be up to the employees to determine how this is conducted, but usually, it is by way of a secret ballot. 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 relationship 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 individual 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.
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