This week's top 5:
- A Launchpad for Ireland’s AI Global Leadership
- ‘Acting your wage’ – 11 workplace buzzwords you need to know
- Twitter ordered to pay record €550,000 to senior executive in Ireland
- Many organisations are trying to deal with staff shortages...
- Headache for Government and business owners after commission says minimum wage should rise by €1
And in other news…………. Barry Phillips examines the significance of two surveys this week about the adoption of ChatGPT in the workplace. Listen here.
- Case Law Review
- AI and Employment Law
- Information Handbook: Rights and remedies available to employees facing a collective redundancy situation
- Twitter ordered to pay record €550,000 to senior executive in Ireland
- Redundancies
- FTSE 100 chief executives’ pay rebounds to 2017 levels
- Global Employment Trends for Youth
- Headache for Government and business owners after commission says minimum wage should rise by €1
- Staff Shortages
- Just in Case You Missed It...
- HR Developments
- Health & Safety Developments
- Employment News in the Media
- Free Webinars This Month
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1. Case Law Review
Alina Karabko v Tiktok Technology Ltd
Reference: ADJ-00051600
Applicant: Alina Karabko
Respondent: Tiktok Technology Ltd
Keywords: Remote Working
Summary Sentence: WRC considered the Work Life Balance and Miscellaneous Provisions Act 2023.
Practical Guidance for Employers: Employers should ensure all remote work requests are carefully reviewed, balancing employee needs with business requirements. Document discussions and decisions, clearly communicate outcomes in writing, and adhere to legal frameworks such as the Work Life Balance and Miscellaneous Provisions Act 2023. Provide grievance procedures for employees to address any concerns.
The full case review can be found here:
https://www.legal-island.ie/articles/ire/case-law/2024/august/alina-karabko--v--tiktok-technology-ltd-2024/
An Administrative Worker v A Hospital
Reference: IR - SC - 00001308
Applicant: An Administrative Worker
Respondent: A Hospital
Keywords: Training allowance deducted from WRC award.
Summary Sentence: WRC issue Recommendation on unilateral deduction of allowance.
Practical Guidance for Employers: Employers should clearly document and communicate any allowances, specifying their terms and conditions. Before making any deductions, consult with the employee to explain and discuss the rationale. Follow established grievance procedures and ensure job descriptions clearly outline duties, especially those involving additional allowances. If there's ambiguity in adjudication decisions, seek clarification or file an appeal promptly to avoid disputes.
The full case review can be found here:
https://www.legal-island.ie/articles/ire/case-law/2024/august/an-administrative-worker--v--a-hospital2024/
These case reviews were written by Patrick Barrett BL.
Patrick's legal education is robust, beginning with a BCL Law Degree from University College Cork (2012-2016), followed by an LL.M in Business Law from the same institution (2016-2017), and culminating in a Barrister-at-Law Degree from The Honorable Society of King’s Inns in Dublin (2019-2021). He has extensive experience on the South-West Circuit, handling Civil, Family, and Criminal Law cases, as well as advising the Citizen Advice Service. He has worked as an employment consultant, dealing with workplace investigations and bankruptcy procedures.
Remember: Our Irish case law reviews are now held in our case law section on our fully-searchable employment law hub website:
https://www.legal-island.ie/employment-law-hub/case-law-search-page/
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2. AI and Employment Law
The Surveys this Week Said…..
Barry Phillips examines the significance of two surveys this week about the adoption of ChatGPT in the workplace. Listen here:
The EU AI Act: A Launchpad for Ireland’s AI Global Leadership
The European Union’s AI Act comes into effect this month. It is an important step in establishing a regulatory framework for an increasingly powerful technology that has the potential to shape the future of Irish business. More here from the Irish Times:
https://www.irishtimes.com/business/2024/08/12/the-eu-ai-act-a-launchpad-for-irelands-ai-global-leadership/
Target employees hate its new AI chatbot
Target CIO Brett Craig enthused in a press release that “transformative GenAI Technology" would arrive in all of the company’s nearly 2,000 stores by August. “Help AI,” would be a sort of “store process expert and coach,” helping new team members learn on the job. It would also “answer on-the-job process questions, coach new team members, support store operations management and allow teams to “work more quickly and efficiently.” But that hasn’t proven to be the case. Target employees told Forbes that “Help AI” struggles to provide decent answers, is frustrating to use and is more distraction than anything else:
https://www.forbes.com/sites/cyrusfarivar/2024/07/23/target-employees-hate-its-new-ai-chatbot/
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3. Information Handbook: Rights and remedies available to employees facing a collective redundancy situation
This information handbook has been written primarily for employees seeking information about their rights and remedies when facing redundancy, collective redundancies or their employer’s insolvency. It may also be of relevance to employers looking to understand their obligations. Read the Guide provided by the Department of Enterprise, Trade & Investment here:
https://enterprise.gov.ie/en/publications/information-handbook-rights-and-remedies-available-to-employees-facing-a-collective-redundancy-situation.html
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4. Twitter ordered to pay record €550,000 to senior executive in Ireland
Twitter has been ordered to pay €550,000 compensation to a former senior executive in its Irish-based operations in what is a record award by the Workplace Relations Commission in an unfair dismissal case. The WRC heard that the social media giant – now known as X – decided the employee had resigned when he failed to tick a box requiring him to agree to new, unspecified pay and conditions within a one-day deadline in response to an email from the company’s new owner, Elon Musk, in November 2022 reports the Irish Times:
https://www.irishtimes.com/business/work/2024/08/13/twitter-ordered-to-pay-550000-to-executive-who-failed-to-respond-to-elon-musk-e-mail/
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5. Redundancies
Updated handbook for employees facing collective redundancies
Minister of State for Business, Employment and Retail, Emer Higgins TD, published an updated version of the Information Handbook: Rights and Remedies available to Employees Facing a Collective Redundancy Situation. The updated handbook reflects the changes to collective redundancy rules introduced in the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 which took effect from 1 July 2024. They provide a new form of redress to employees where their employer makes them redundant before the end of the 30-day notification period set out in law. They also enhance employees’ entitlements to information, both as creditors under company law and as workers, in the event of their employer’s insolvency:
https://enterprise.gov.ie/en/news-and-events/department-news/2024/august/130820241.html
Irish staff in the dark as Intel starts global cuts
Chip giant Intel has begun the process of trimming more than 15,000 jobs from its workforce around the world as part of a big cost-cutting plan to get the company back on track. The restructuring is hoped to save $10 billion in 2025. The company said it would offer early retirement and voluntary redundancies to staff, with the packages varying according to location reports the Irish Times:
https://www.irishtimes.com/business/2024/08/09/irish-staff-in-the-dark-as-intel-starts-global-cuts/
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6. FTSE 100 chief executives’ pay rebounds to 2017 levels
The pay of FTSE 100 chief executives surged by £560,000 (€654,620) to an average of almost £5 million last year, rebounding to levels not seen since 2017. The figures come as UK executives push for higher payouts to compete with international rivals, particularly in the US, where company bosses are paid significantly more. But the figures will be seized on by opponents of high pay, with the median FTSE 100 chief now paid 120 times the median full-time British worker, according to the High Pay Centre. The Irish Times has more on this story:
https://www.irishtimes.com/business/work/2024/08/12/ftse-100-chief-executives-pay-rebounds-to-2017-levels/
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7. Global Employment Trends for Youth
The 2024 edition of the Global Employment Trends for Youth (GET for Youth), prepared by the International Labour Organisation, presents the latest available global and regional youth labour market indicators. Key findings include:
13% - global youth unemployment rate in 2023, lowest rate in 15 years
20% - share of youth not in employment, education or training (NEET) in 2023
2 in 3 young NEETs globally are women
You can view the full report here:
https://www.ilo.org/publications/major-publications/global-employment-trends-youth-2024
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8. Staff Shortages
Students face reduced subject choice and larger classes amid teacher shortages
Teachers' unions have warned that students may be forced to change subjects and cope with larger class sizes in September due to a teacher recruitment crisis. The Teachers’ Union of Ireland (TUI) said the continuing teacher recruitment and retention crisis will restrict subject options available to students and could also threaten planned redevelopment at Senior Cycle. More here from the Irish Examiner:
https://www.irishexaminer.com/news/arid-41455030.html#:~:text=Association%20of%20Secondary%20Teachers%20in,teacher%20in%20front%20of%20them
Chipmakers facing a crisis due to shortages of engineers and technicians
When will artificial intelligence (AI) start to replace human workers in a more significant way? Long before we need to worry about that happening, a human worker shortage may turn out to be the biggest obstacle to the AI industry. The problem is that making a chip factory is not as simple as setting up a new factory that assembles smartphones in another country, where local workers can be quickly hired and trained. Chip plants require highly-skilled employees, with masters and doctoral degrees in science and engineering, to run them. The Irish Times has more on this story:
https://www.irishtimes.com/technology/2024/08/14/chipmakers-facing-a-crisis-due-to-shortages-of-engineers-and-technicians/
Aircoach cancels some services due to driver shortage
Aircoach has apologised to customers for service disruptions which it says have been caused by an industry-wide shortage of drivers. There had been some disquiet amongst drivers about new roster arrangements last month and SIPTU negotiators were reported to have recommended accepting an offer made by the company which included a 4.8% pay increase reports RTÉ:
https://www.rte.ie/news/regional/2024/0812/1464600-aircoach-drivers/
But, note with caution…
Workers are increasingly cutting holidays short, as staff shortages disrupt annual leave
Two thirds of workers in the UK (65%) aren’t using their full Annual Leave allowance according to the findings of a survey by Breathe. Most employers understand the importance of a healthy approach to time off, as stressed employees are more likely to leave. How can employers prevent these issues and keep their teams engaged? HR Director has more here:
https://www.thehrdirector.com/business-news/work_life_balance/uk-workers-increasingly-cutting-holidays-short-staff-shortages-disrupt-annual-leave/
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9. Headache for Government and business owners after commission says minimum wage should rise by €1
The Government looks likely to increase the national minimum wage by over €1 an hour in Budget 2025. The Low Pay Commission is understood to have recommended increasing the basic pay rate to at least €13.70. Its proposal would help the Government deliver on a commitment to replace the minimum wage with a new living wage in two years. You can read more on this from the Irish Independent:
https://www.independent.ie/irish-news/headache-for-government-and-business-owners-after-commission-says-minimum-wage-should-rise-by-1/a794082556.html
And for another take..........
An increase to the national minimum wage, from €12.70 to €13.50 an hour, is set to be considered by Cabinet when the Government resumes formal consideration next month of measures to be taken in the budget. The Low Pay Commission is understood to have recommended an 80 cent increase per hour to the current rate at the start of summer. Read in full:
https://www.irishtimes.com/business/work/2024/08/15/rise-in-national-minimum-wage-from-1270-to-1350-an-hour-to-be-considered-by-cabinet/
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10. Just in Case You Missed It...
Unfair Dismissal or Contractual Right? Triona Cody from Kane Tuohy outlines the legal Implications of the Philip Nolan Case for Employers. Read it here:
https://www.legal-island.ie/articles/ire/features/supplementary/august/unfair-dismissal-or-contractual-right-legal-implications-of-the-philip-nolan-case-for-employers/
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11. HR Developments
‘Acting your wage’ – 11 workplace buzzwords you need to know
New research has revealed 11 new, trending expressions that are set to impact the workplace in 2024 and beyond. Following the trends of ‘quiet quitting’ and ‘The Great Resignation’, thousands of Reddit and TikTok conversations were studied to identify patterns feeding workplace behaviours, with 11 brand-new expressions being uncovered and explained in this article from HR Director:
https://www.thehrdirector.com/business-news/the-workplace/ghost-jobs-acting-wage-11-viral-workplace-buzzwords-need-know/
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12. Health and Safety Developments
Return to Work after sick leave due to mental health
This article from the European Agency for Safety and Health at Work describes factors that enhance return to work (RTW) after sick leave due to common mental health issues:
https://oshwiki.osha.europa.eu/en/themes/return-work-after-sick-leave-due-mental-health-problems
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13. Employment News in the Media
Rehab has been ordered to pay €2,500 compensation to a former employee with an intellectual disability who was dismissed after she was found trying to steal money from colleagues at work. The Workplace Relations Commission ruled that the woman was unfairly dismissed from her role with Rehab Enterprises on a technicality, although it acknowledged that theft was normally an action that would give rise to a dismissal. More from RTÉ:
https://www.rte.ie/news/business/2024/0809/1464224-rehab-told-to-pay-2-500-to-worker-for-unfair-dismissal/
An economist for the Environmental Protection Agency in the USA may proceed with his lawsuit alleging that the company failed to accommodate his severe allergies, which were exacerbated by a co-worker who wore heavy perfume. The employee initially requested a private office or small conference room to address the issue but the EPA allegedly countered with an offer of fully remote work, which the plaintiff rejected. Now a jury must resolve the question of whether the proposed telework accommodation was reasonable and whether EPA fulfilled its duty to engage in discussions with the employee about a proper accommodation. More from HR Dive:
https://www.hrdive.com/news/epa-staffer-allergic-heavy-perfume-accommodation-suit/724022
According to the study by the High Pay Centre, median pay for a FTSE 100 CEO increased from £4.1 million in 2022 to £4.19 million in 2022. The median FTSE 100 CEO is now paid 120 times more than the median UK full-time worker. This ratio peaked at 124:1 in 2022 but is still a much larger ratio than the 108:1 that was calculated in 2021. You can read more on this from Personnel Today:
https://www.personneltoday.com/hr/ceo-pay-increased-to-a-record-high-level-in-2023/
Cisco Systems, a digital communications firm, is planning to lay off 7% of its employees, globally. Its second round of job cuts this year as the company shifts its focus to more rapidly growing areas in technology such as artificial intelligence and cybersecurity. The company based in San Jose, California, did not specify the number of jobs it is cutting. The Journal has asked the firm if jobs at their Irish offices are at risk:
https://www.thejournal.ie/cisco-systems-job-cuts-6463487-Aug2024/
Workers at Glen Dimplex will commence a work-to-rule action Friday 16 August in reaction to the potential closure of the heating manufacturer's site in Portadown. The industrial action, which also comprises of a training and overtime ban, will start at midnight on Friday after management announced proposals to move work to offshore work to Lithuania, which would result in a number of redundancies. Business Plus has more on this story:
https://businessplus.ie/news/glen-dimplex-action/
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14. Free Webinars This Month
HR’s Role in Addressing Domestic Abuse
Tuesday 3rd September, 11:00am - 11:45am
As HR professionals, safeguarding the well-being of our employees is a paramount responsibility. Unfortunately, domestic abuse is an issue that affects many; in 2023, more than 54,000 domestic abuse complaints were made to An Garda Síochána, marking an 8% rise compared to the previous year. Domestic abuse and its repercussions often extend into the workplace, impacting productivity, morale, and overall health. It is essential HR makes a positive impact by fostering a supportive workplace culture to those affected.
In this webinar, Emma Quinn from Eversheds Sutherland firm joins Victoria Smith from Legal Island to discuss this topic. Emma will set out the practicalities and will provide her legal insights to help you:
- Gain practical strategies to support employees dealing with domestic abuse, ensuring their safety and well-being at work.
- Know your legal responsibilities under the Work Life Balance and Miscellaneous Provisions Act by providing Statutory Domestic Violence Leave for staff.
Our expert speakers will provide guidance to help you handle these sensitive situations with empathy and effectiveness. Victoria will also take your questions at the end and discuss with Emma on what HR can and should be doing to tackle this issue. NOTE: – send questions in live during the webinars or drop a line in advance to webinars@legal-island.com Anonymity assured.
You can reserve your spot here:
https://attendee.gotowebinar.com/register/4506468694327002207?source=WR
All of our Legal Island webinar recordings and searchable transcriptions are posted online within this section of our employment law hub and are available to stream and research:
https://www.legal-island.ie/resources/webinar-recordings/
Enjoy the weekend.
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