New “on the spot” fines for employment law breaches

19 February 2024

The Workplace Relations Act 2015 (Fixed Payment Notice) Regulations 2023 (the “Regulations”) which were published in January, detail employment law offences and their related ‘on the spot’ fines, which range from €500 to €2,000 per offence. The Regulations revoke existing regulations S.I.No.419/2015 and S.I.No.32/2017 and incorporate existing offences that were already subject to a Fixed Payment Notice (in lieu of prosecution), into a consolidated set of new regulations. Our Employment Law team explain below.

These ‘on the spot’ fines cover a variety of offences, including those surrounding tips under the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022. Offences such as failing to display a ‘tips and gratuities notice’ on the premises are now subject to a fine. These types of fines are intended to provide an additional layer of protection to ensure hospitality workers get the benefit of the tips they earn.

Employment related fines

Details of the fines which may be imposed on employers for breaches of employment legislation are provided below:

Failure to provide employees, without reasonable cause, with their terms of employment, within one month of the employee’s commencement date, or the provision of false or misleading information to the employee, may incur a fine of €1,500.
Failure to consult with employees or supply employee representatives with all relevant information relating to a proposed collective redundancy, may face a fine of €2,000.
Failure to provide an employee with a written statement of wages, the details and the amount of any deductions from wages, may incur a fine of €1,500.
Failure to provide an employee with a statement of the average hourly rate of pay for a pay reference period at the employee’s request, face a fine of €1,500.

Tips and gratuities related fines

Employers are currently required to display a ‘tips and gratuities notice’ or a ‘contract workers tips and gratuities notice’. Employers in breach of this requirement may face a fine of €500.
Employers who implement a service charge and fail to distribute this charge amongst employees, where customers were led to believe this would happen, may face a €750 fine.
Employers who fail to provide a written statement within 10 days, detailing the total amount of tips or gratuities distributed for the relevant period generally, and for the employee specifically, may face a fine of €750.

What do employers need to be aware of?

The Government announcement of the Regulations highlighted that Inspectors from the Workplace Relations Commission (“WRC”) will continue to visit businesses across Ireland to ensure they are operating in line with the legislation. If Inspectors find employers in breach, they may be liable for the fines detailed above. If the business does not make payment within 42 days, they will be referred to the WRC’s internal legal affairs committee, who will in turn determine whether to proceed to prosecution.

Get in touch

Our Employment and Immigration Law team, led by Aoife Newton, can advise on how the changes brought in by the Regulations may impact your business and more generally, advise on WRC inspections. Please contact a member of the team for more information.

Aoife Newton

Head of Employment and Immigration Law

aoife.newton@kpmglaw.ie