PROSECUTIONS TAKEN against employers by the National Employment Rights Authority increased by more than 50 per cent in 2009 despite a fall in the number of inspections of businesses and complaints from workers.
By the middle of last December, prosecutions by the authority against employers were up 54 per cent on 2008 from 70 to 108. Two-thirds of prosecutions were for underpayment of wages, while almost a third were for failing to keep proper records.
Complaints, which are largely from employees, had fallen by 20 per cent to 1,193 by mid-December 2009, from 1,488 in the same period last year.
There was a small drop in the number of inspections with 21,507 to mid-December 2009, down from 21,896. Prosecutions had increased largely because inspections were becoming more focused on sectors where employees were more likely to be at risk, said the authority’s director, Ger Deering.
“If you target sectors where you believe there is a risk of non-compliance, that will be the result . . . Unfortunately it is a fact of life that in low-paid sectors, you are more likely to have people at risk.”
In 2009 the agency concentrated on inspections of the security industry and contract cleaning companies. This year it will focus on the retail sector and hotels.
The rise in prosecutions also related to the power the employment rights agency now has to carry out joint investigations with the Revenue Commissioners, the Department of Social and Family Affairs or the Garda National Immigration Bureau.
“We have come across the situation where employers have two sets of accounts. We have found where people are working illegally without work permits or people working and claiming social welfare as well.”
However, Mr Deering stressed that compared with the number of inspections carried out each year, the number of prosecutions was quite low. “We are actively working with employers to get compliance without taking prosecutions.
“If you see a case going for prosecution, it is because that employer is refusing to co-operate with us, will either not produce the records or not rectify the breaches that we’ve detected.”
He said compliance rates were quite high. Even with the targeting of lower-paid sectors, 45 per cent of employers inspected were found to be complying with employment law. “My own view is prosecutions will increase this year and probably next year, but then we will see that trend go back down as we get the message out.”
He said the fall in the number of complaints from employees could be a cause for concern.
“People are more nervous of getting their rights. There’s an element of, ‘I’m very lucky to have a job’. The other reason is there are fewer people employed.”
He did not, however, believe employees were more likely to be exploited because of the economic downturn. “With the people we find non-compliant, the underpayments don’t start in 2009 or 2008; these are people who were underpaying all along. There is a misconception out there that people had to start to underpay people because of the recession.”
IN NUMBERS
4,033: The number of breaches detected up to December 11th, 2009; the 2008 total was 4,475
€2,299,681: The amount of unpaid wages paid to employees following inspections up to December 11th, 2009; €2,486,965 was paid in 2008
