Gerard Ward

As the Employment law division of DWF, we regularly advise NI and GB based employers on their operations in the Republic of Ireland. As the UK approaches its departure from the European Union, we anticipate demand for specialist advice from local businesses to increase, with many NI-based companies having already taken the decision to establish or expand their footprint in the Republic of Ireland post-Brexit.

In general terms, GB, NI and Irish employment laws have primarily emanated from EU Directives. Whilst there are similarities between both jurisdictions, to the surprise of many Northern Irish employers, there are in fact, substantial differences which can have a significant impact on their business models.

Working with our colleagues in DWF Dublin, we regularly advise HR departments on the key differences between the two jurisdictions, to allow them to harmonise terms, while ensuring compliance with local law. This is particularly in relation to employer obligations.

The minimum wage is an obvious place to start. Since 1 January 2018, the rate in the Republic of Ireland is €9.55 per hour. This contrasts with Northern Ireland where, from 1 April 2018, the rate is set at £7.83 per hour (for over 25s) – a significant difference, even taking currency fluctuations into consideration.

In addition, Republic of Ireland employers have no obligation to contribute to an employee’s pension, just to allow access to a pension scheme. This is in direct contrast to the automatic enrolment obligations of employers in Northern Ireland.

Sick pay is another area of note. Republic of Ireland employers are under no obligation to pay sick pay but is open to them to provide a sick pay scheme on a contractual basis. In Northern Ireland employers can choose to provide a sick pay scheme on a contractual basis and if no contractual sick pay scheme exists, employers will be obliged to pay Statutory Sick Pay (SSP) to all employees.

Public holidays also differ on either side of the border with employees in the Republic of Ireland enjoying nine public holidays as opposed to their Northern counterparts who benefit from ten bank and public holidays, with the days differing in some instances.

There are also differences in the employers’ notice obligations, rising from 1 week to 8 weeks’ after 15 years’ service in the Republic of Ireland; whereas in Northern Ireland employer’s notice is between 1 week and 12 weeks’ after 12 years’ service.

Redundancy packages in the Republic of Ireland, which are based on length of service and salary, are substantially more lucrative than in the Northern Ireland, where length of service, salary and age are taken into account. Statutory redundancy payments in the Republic of Ireland are based on two weeks per year of service plus a bonus week’s pay. The weekly wage is capped to €600. Most importantly and unlike in Northern Ireland, the total redundancy payment is not capped. Ex-gratia payments are also common in the Republic of Ireland.

The law also differs when it comes to cases of unfair dismissal. Whilst employees in both jurisdictions require 12 months’ service to bring an unfair dismissal claim, awards, which can be up to a maximum of 2 years’ net remuneration in the Republic of Ireland can be applied, unlike in Northern Ireland where awards are capped. Claims must generally be presented or brought within six months in the Republic of Ireland as opposed to a stricter three-month time limit in Northern Ireland.

Senior executives in the Republic of Ireland often seek interlocutory injunctions to restrain disciplinary processes or dismissals. The risk of injunction applications is far higher in the Republic of Ireland than in Northern Ireland.

The Republic of Ireland’s Workplace Relations Commission (“WRC”) operates as the Court of First Instance with appeals going to the Labour Court. The WRC is typically less procedural than the Industrial Tribunal system in Northern Ireland, with very little pressure on Claimants to set out their case in detail prior to the hearing date.

Unlike the position in Northern Ireland, there is no statutory underpinning or recognition of Compromise Agreements in the Republic of Ireland, although they can be binding on employees.

TUPE is another area of distinction. In Northern Ireland TUPE will almost inevitably apply to service provision changes i.e. where there is a change of contractor or an outsourcing or insourcing of work. However, this is not the case in the Republic of Ireland, where the application of TUPE is much more fact sensitive and dependent upon the circumstances of any change.

These points offer an insight into the main employment areas which require consideration when operating a business on either side of the Irish border. We would always recommend employers take local, bespoke advice relating and tailored to the needs and requirements of their business when expanding into a new territory, harmonising terms or dealing with a dispute in a new jurisdiction.

• Gerard Ward is a senior associate at DWF in Belfast. View his profile here.