SCHEDULE
CODEOFPRACTICE
Introduction
Section42oftheIndustrialRelationsAct1990providesforthepreparationof draftcodesofpracticebytheWorkplaceRelationsCommissionforsubmission totheMinisterforBusiness,EnterpriseandInnovation.CodesofPracticeare writtenguidelines,agreedinaconsultativeprocess,settingoutguidanceand bestpracticeinregardtoindustrialrelationspracticeandcompliance.
ArisingfromarecommendationoftheReportoftheInterdepartmentalGroup onFullerWorkingLives(publishedinAugust2016),theCommissionwas requestedon28September2016bytheMinistertoprepareaCodeofPractice aroundtheissueoflongerworking,settingoutbestindustrialrelationspractice inmanagingtheengagementbetweenemployersandemployeesintherunup toretirementageintheemploymentconcerned.
Background
Theproportionofolderworkers,and,inparticular,workerswhowanttocontinueinemploymentbeyondwhatwouldhavebeenregardedasthetraditional retirementage,i.e.65yearsofage,isforecasttogrowsignificantlyinthefuture. Employersneedtobepreparedforthisinthecontextof:
•Managingrequestsfrompeopletocontinuetoworkbeyondwhatwould havebeenregardedasthenormalretirementage;
•Developingemploymentpracticesandproceduresappropriatetoincreasinglyagediverseworkplacesthatencourageretentionofolderworkersand longerworkinglives;and
•Thechangingstatutoryandlegalframeworkinregardtoretirementand pensionentitlements.
Purpose
ThemainpurposeofthisCodeistosetout,fortheguidanceofemployers, employeesandtheirrepresentatives,bestprinciplesandpracticestofollowduringtheengagementbetweenemployersandemployeesintherunuptoretirementincludingrespondingtorequeststoworkbeyondtheretirementageinthe employmentconcerned.
InpreparingthisCodeofPractice,theWorkplaceRelationsCommissionconsultedwiththeIrishBusinessandEmployersConfederation,theIrishCongress ofTradeUnionsandrelevantGovernmentDepartments.
TheCodesetsoutbestpracticeoverthefollowingheadings:
•Utilisingtheskillsandexperienceofolderworkers.
•Objectivejustificationofretirement.
•Standardretirementarrangements.
•Requeststoworklonger.
UtilisingtheSkillsandExperienceofOlderWorkers
Fromanemployerperspective,managinganolderanddiverseworkforceina positivewaywilldelivergreatestvaluebylookingathowbesttomaximisethe experienceandskillsofolderworkers,andtoharnessandaccommodatethose experiencesandskillstotheadvantageofthebusiness.Suchmeasurescould include:
•Trainingofmanagementatalllevelsaboutagediversityandthebenefits ofsuchdiversity;
•Encouragingknowledgeandexperiencesharingandutilisingtheskilland experiencesofallworkers;
•Exploringmeasuresaroundflexibleworkingpatterns;
•“Proofing”policiesandproceduresforagebias;or
•Encouragingaculturethatappreciatesthecontinuingneedforrelevant traininganddevelopmentamongstallagegroups.
Deliveringapositivemessagearoundembracingandvaluingemployeesofall ages,raisingagediscriminationawarenessandhavingaculturethatdoesnot toleratediscriminationarekeytogoodindustrialandworkplacerelations.
ObjectiveJustification
Thereisnostatutoryretirementageintheprivatesector.Retirementagesin theprivatesectoraregenerallysetoutbymeansof:
(a)anexpresstermintheemployee’scontractofemployment;
(b)animpliedtermintheemployee’scontractofemployment;
(c)relevantpolicies,forexampleastaffhandbook;and
(d)customandpracticegenerallyarisingfromthepensiondatesetoutin therelevantoccupationalpensionscheme.
Therulesgoverningthecompulsoryretirementagesforpublicservantsare,in themain,setdowninprimarylegislation.
TheEmploymentEqualityActs1998to2015prohibitdiscriminationonnine groundsincludingage.Therefore,theterminationofanemployeebecauseof agecouldbeconstruedasdiscriminationunderthelegislation.TheEquality (MiscellaneousProvisionsAct)2015,whichcameintoeffecton1January2016 madeanumberofamendmentstothe1998Act.Section34(4)oftheActnow statesasfollows:
“(4)Withoutprejudicetosubsection(3)itshallnotconstitutediscrimination ontheagegroundtofixdifferentagesfortheretirement(whethervoluntaryorcompulsorily)ofemployeesoranyclassordescriptionof employeesif
(i) itisobjectivelyandreasonablyjustifiedbyalegitimateaim,and
(ii) themeansofachievingthataimareappropriateandnecessary.”
Essentiallythelawisnowthatcompulsoryretirementagessetbyemployers mustbecapableofobjectivejustificationbothbytheexistenceofalegitimate aimandevidencethatthemeansofachievingthataimisappropriateandnecessary.Examplesofwhatconstitutesalegitimateaimbyanemployermayinclude:
•Intergenerationalfairness(allowingyoungerworkerstoprogress);
•Motivationanddynamismthroughtheincreasedprospectofpromotion;
•HealthandSafety(generallyinmoresafetycriticaloccupations);
•Creationofabalancedagestructureintheworkforce;
•Personalandprofessionaldignity(avoidingcapabilityissueswitholder employees);or
•Successionplanning.
StandardRetirementArrangements
1.IdentifyingIndividualIntentions
Goodworkforceplanningisacriticalelementinanyworkplace.Central tothisareappropriateemployeenumbersandskillsets,recruitment,and planningfordeparturesincludingretirement.Wherenocontractualretirementdateexists,itisreasonableaspartofworkforceplanningforan employertoraiseanddiscusswiththeemployee,theirretirement intentions.
2.GeneralInformation/Supports
Goodinformationandsuitableguidancecanenableemployeestomake moreinformedchoicesinplanningfortheirretirement.Employerscould
considertheprovisionofcertainsupports,forexample,suitablepre-retirementcourses,aflexibleorparttimeworkingarrangement,counselling etc.,essentiallywithaviewtoassistingthetransitiontoretirement.
Itisrecommendedthatanemployershouldprovideclearinformationon howretirementprocedureswork,bothatrecruitmentandatregular occasionsthroughoutanemployee’scareer.Attheveryleast,appropriate guidanceonhowreliableandinformativeinformationcanbesourced shouldbemadeavailabletotheemployee.Thisshouldbethecaseirrespectiveofwhethertheemploymenthasapensionschemeinplaceornot.
TheRetirementProcess
Itisgoodpracticeforanemployertonotifyanemployeeoftheintentionto retirehim/heronthecontractualretirementdatewithin6—12monthsofthat date.Thisallowsforreasonabletimeforplanning,arrangingadviceregarding peoplesuccession,etc.Whiletheinitialnotificationshouldbeinwriting,itshould befollowedupwithaface-to-facemeetingwhichshouldfocusonaddressing thefollowing:
•Clearunderstandingoftheretirementdateandanypossibleissuesarising;
•Explorationofmeasures(subjecttoagreement)whichwouldsupportthe pathwaytoretirement,forexampleflexibleworking,lookingatalternative rolesuptothedateofretirement;
•Transitionalarrangementsinregardtotheparticularpost;and
•Assistancearoundguidanceandinformation.
RequesttoWorkLonger
QuestionsfortheEmployerandEmployee
Arequestfromanemployeetoworklongerthantheircontractedretirement ageshouldbeconsideredcarefully.Thereareanumberofmatterstobeconsideredbytheemployerandemployeeinthisregardincluding:
FortheEmployee
•Istheemployeeconfidentthathe/shecancontinuetoperformtheroleto therequiredstandard?
•Canflexibleworkingoptionsoralternativerolesbeconsidered?
•Whatisthedurationoftheextensionbeingsought?
•Arethereanypensionimplications?
•Aretherecontractofemploymentimplications?
FortheEmployer
•Aretheregoodgroundsonwhichtoacceptorrefusetherequeste.g.can theretirementbejustifiedonalegitimateandobjectivebasis?Itis importanttonotethattheEquality(MiscellaneousProvisions)Act2015 requiresthatafixed-termcontractpost-retirementagemustbeobjectivelyjustified.
•Whataretheobjectivecriteriaapplicabletotherequest?Thisshouldform thebasisofanyassessmentofarequesttoworkbeyondretirementage toensureanequalandconsistentapproachtoaddressingthisandother futurerequests.
•Howwouldthearrangementsfortheemployeeremainingonintheworkforcebecontractuallyframed(e.g.fixedtermcontract)?
•Couldgrantingtherequestbeonthebasisofamoreflexibleworking arrangement(e.g.lessthanfullhoursoranalternativerole)?
RequesttoWorkLongerProcedure
Indealingwitharequesttoworklongeritisrecommendedthattheparties engageasfollows:
1.Theemployeeshouldmakesucharequestinwritingnolessthanthree monthsfromtheintendedretirementdatetobefollowedupwithameetingbetweentheemployerandemployee.Thismeetinggivesboththe employeeanopportunitytoadvancethecaseandallowingtheemployer toconsiderit.Itisimportantthattheemployeeislistenedtoandthatany decisionmadeisonfairandobjectivegrounds.
2.Theemployer’sdecisionshouldbecommunicatedtotheemployeeasearly aspracticalfollowingthemeeting.
3.Shouldthedecisionbetoofferafixed-termcontractpost-retirementage, theperiodshouldbespecified,settingoutthetimeframe,andthelegal groundsunderpinningthenewcontractshouldbemadeclear(i.e.fixedtermcontract).Itisgoodpracticetoincludeareferencethatthedecision ismadesolelyhavingregardtothecasebeingmadebytheemployeeand doesnotapplyuniversally.
4.Wherethedecisionistorefusetherequest,thegroundsforthedecision shouldbesetoutandcommunicatedinameetingwiththeemployee.This willhelptheemployeetounderstandwhytherequesthasnotbeen granted,andgivetheemployeeconfidencethathis/hercasehasbeengiven seriousconsiderationandthattherearegoodgroundsforrefusingthe request.Theapplicantshouldhaverecoursetoanappealsmechanism,for
examplethroughthenormalestablishedgrievanceproceduresinthe organisation.
5.Anemployeemaybeaccompaniedtoameetingbyaworkcolleagueor unionrepresentativetodiscussarequesttotheemployertofacilitate workinglongerandinanyappealsprocessaroundsame.
GIVENundermyhand, 20December2017.
PATBREEN, MinisterofStateattheDepartmentofBusiness,Enterprise andInnovation.
