What is a workplace inspection and why do they take place?

Let’s admit it.

A letter from the Workplace Relations Commission (WRC) Inspection Services advising of a workplace inspection can send a shiver down the spine of most employers.

The WRC is the statutory body appointed to ensure employers compliance with employment legislation in Ireland.

It’s Inspection Services carries out regular inspections.

The WRC also has the statutory power to prosecute employers where non-compliance persists or is serious.

In recent years, the WRC has significantly increased the number of inspections being carried out by its Inspection and Enforcement Division.

In 2019 WRC Inspectors completed nearly 5,000 workplace inspections and 125 lead to prosecution.

WRC Inspections

A WRC inspection need not be a difficult or onerous event for you.

If you are a compliant employer, you have nothing to fear.

Maintaining the correct records and making them available to the inspector will help to establish quickly if your workplace is compliant.

Even if you are found not to be compliant, the WRC is there to work with you to help you become compliant.

Areas of non-compliance identified during the inspection process can usually be resolved satisfactorily by communicating and cooperating with the inspector.

In general Inspectors can:

• Enter premises at reasonable times
• Interview employers and employees
• Take statements
• Examine and take copies of records
• Initiate legal proceedings.

Timing of the Inspection…

Generally, but not always, you will get advance notice of an inspection.

An appointment letter, giving you a proposed date and time for inspection, will be sent to you.

If you have a valid reason as to why the inspection cannot be carried out at the appointed time, you should contact the inspector as soon as possible to arrange an alternative date and time.

Location of the Inspection…

The inspection should take place at your business premises as employers are obliged by law to keep their employment records there.

You can choose to be represented by a solicitor or anyone else in your dealings with the WRC and there will be a dedicated inspector assigned to deal with each case.

Why are inspections carried out?

Generally, WRC inspections are carried out

1. Routinely
2. After receiving a complaint
3. As part of a compliance campaign dealing with a new or particular development in an industry or piece of legislation.

In general, the WRC will not tell you why they are inspecting unless it is a repeat inspection within 6 months of the first one.

Checking on your compliance with statutory requirements as to the necessary employment records is a key part of the inspection.

Once the inspection is carried out a letter will issue concluding the investigation providing there is no evidence of non-compliance.

If there are minor breaches, then the Inspector will generally give you the opportunity to put things right.

However, where there is evidence of underpayment of wages the inspector will calculate the underpayment for three years from date of inspection and seek to have this paid as soon as possible.

The WRC can also bring prosecutions in serious or persistent cases of non-compliance and can share it’s information with the Revenue Commissioners and the Department of Social Protection.

If you feel that you have been treated unfairly you can bring a complaint to the WRC regional manager who will investigate your complaint.

Preparing for the Inspection

Once you receive an appointment letter, you should review the WRC Inspection Checklist enclosed below.

If you can comply with everything on this checklist then you should not be unduly concerned about an inspection.

There are a few things you need to remember:

1. You are required by law to maintain employee records for a period of three years.
2. You should note the heightened requirement to maintain records in relation to force majeure leave for eight years and parental leave for 12 years.
3. Tax records must be maintained for a period of six years and any records relating to workplace accidents must be retained for 10 years.

At all times you should be cognisant of the fact that the retention of employment records involves a balancing exercise between data protection principles on the one hand and the employment legislative requirements on the other.

Therefore, it is important for you to ascertain on what basis you are retaining the relevant records.

In terms of the actual process, an inspector will carry out an initial interview with you before reviewing the relevant documentation.

An inspector may then choose to interview a selection of employees.

Once an inspector has completed his or her inspection, they will prepare a written report.

Enforcement

WRC Inspectors do have a wide range of enforcement power available to them.

There are several actions open to an Inspector who finds that you have breached employment law.

The Inspector can:

• Issue a letter asking you to correct the non-compliance
• Refer the matter to legal services for prosecution
• Carry out a further inspection to ensure compliance

Prosecutions

Under the Workplace Relations Act 2015, the WRC has the power to bring a summary prosecution against any employer who is alleged to be in breach of the law.

If you are convicted of an offence under the Act, the court will order you to pay the WRC the costs and expenses they incurred investigating, detecting and prosecuting the offence.

Compliance Notices

An inspector can also serve a compliance notice on you if they are satisfied that you have broken relevant legislation.

The notice specifies how the breach should be rectified.

You have the right to appeal to the Labour Court against a compliance notice within 42 days.

There is also scope to appeal any Labour Court decision to the Circuit Court.

Fixed Payment Notices

Inspectors may also issue fixed payment notices for amounts of up to €2,000 if they believe that you have committed a relevant offence.

A relevant offence is:

• Breaching your obligation to consult with employee representatives in the case of collective redundancies
• Failing to provide your employees with a statement of wages and deductions from wages
• Failing to provide your employees with a statement of the average hourly rate of pay for a pay reference period.

The fine must be paid within 42 days.

Employer’s Checklist for WRC Inspections

Below you will find a handy employer’s checklist for a WRC inspection:

1. Do you have your employer’s registration number with the Revenue Commissioners?
2. Have you a list of all your employees together with their PPS numbers and addresses?
3. Have you the dates of commencement of employment for all employees? (and dates of termination if applicable?)
4. Have you given all your employees a written statement of terms and conditions of employment?
5. Have you the employees’ job classification?
6. Have you a record of their annual leave and public holidays taken by each employee?
7. Have you a record of hours worked for all employees?
8. Have you a record of all payroll details?
9. Can you prove that you provide your employees with a written statement of pay?
10. Have you a record or register of all employees under the age of 18?
11. Have you employment permits where applicable?
12. Have you filled out the template letter details that you will receive from the WRC advising you of the inspection?

This checklist is not exhaustive.

You will find a more detailed Inspections Checklist here

You should also take a look at our employment guide for employers for further guidance.