APRIL 2024 – ARTICLES & ITEMS OF INTEREST

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APRIL 2024 – ARTICLES & ITEMS OF INTEREST

The Legal Quality Standard of Ireland

APRIL 2024 – ARTICLES & ITEMS OF INTEREST

OVERVIEW OF THE LATEST EMPLOYMENT LAW DEVELOPMENTS

In the spring edition of The Parchment, Ciara O’Kennedy gives an overview of recent employment law developments.  She discusses the following:-

Extension of Statutory Obligations under the Protected Disclosures Legislation – on 17 December 2023 this legislation was extended from employers with 250+ employees to employers with 50+ employees.

Leave Entitlement – Domestic Violence Leave – came into force on 27 November 2023.

Leave Entitlement – Parents Leave and Parents Benefit – Budget 2024 announced this will be extended from 7 weeks to 9 weeks from August 2024.

Leave Entitlement – Statutory Sick Pay – came into force in January 2023

Right to Request Remote Working and Flexible Working Arrangements – have come into force in Ireland following the recent publication of the Code of Practice.

Gender Pay Gap Reporting – came into force on 31 May 2022, it initially applied to public and private sector organisations with 250+ employees, but the scope is set to be extended to organisations with 150+ employees in 2024 and to organisations with 50+ employees from 2025.

Pensions (Auto-enrolment) – scheme expected to begin in the latter half of 2024.

National Living Wage Order 2023 – set the national minimum hourly rate of pay from the 1 January 2024.

The Payment of Wages (Amendment) Tips and Gratuities) Act 2022 – on the spot fines introduced in late December 2022.

She concludes by saying employers should be advised to review these developments and consider which are relevant to them.  Changes may be required to ensure compliance with the obligation on employers and entitlements to employees.  New and/or updates to policies and procedures may need to be introduced.

To view this article in full see https://issuu.com/256media/docs/parchment_spring_2024-flipbook?e=16581915/98213354

LSRA PUBLISHES COMPLAINTS REPORT

On Friday 26 April 2024, the Legal Services Regulatory Authority (LSRA) published its first complaints report for 2024.  This 29-page report documents trends, themes and statistics from 2 September 2023 to 1 March 2024. 

Overall, legal practitioners were directed by the LSRA to pay a total of €45,111 in compensation to their clients in the reporting period.

It is reported 637 complaints were received, with 607 complaints relating to solicitors and 30 relating to barristers.

The 637 complaints can be broken down as follows:-

  • Alleged Misconduct – 382 (60%) complaints related to :-
    • Bringing the profession into disrepute 
    • Failure to hand over
    • Failure to communicate
    • Failure to account for client’s moneys
    • Fraud or dishonestly
    • Delay
    • Undertakings
    • Conflict of Interest
    • Counsels fees
    • Other
  • Alleged inadequate standard – 128 (20%)
  • Alleged excessive costs (overcharging) – 11 (2%)
  • Mixed ground complaints – 116 (18%)

796 complaints were closed during the reporting period. [414 were deemed inadmissible, 131 were resolved or determined by the LSRA, 69 upheld complaints, 72 not upheld complaints, 45 complaints withdrawn, 7 complaints of alleged misconduct were referred by the Complaints Committee of the LSRA to the separate Legal Practitioners Disciplinary Tribunal and 67 complaints closed for other reasons.]

The report also details the LSRA’s High Court enforcement activities against solicitors who did not comply with its directions or determinations in complaints made against them.

The report includes 3 case studies and 5 tables of complaints completion statistics.

To view the report in detail see https://www.lsra.ie/wp-content/uploads/2024/04/LSRA-Complaints-Report-1-2024-FINAL.pdf

FINES ISSUED FOR FAILING TO COMPLY WITH AML OBLIGATIONS AND PROVIDE STAFF WITH RELEVANT TRAINING

On the 5 April 2024, it was reported on the Law Society of England and Wales website that the firm of David Barney & Co. based in Stevenage, Hertfordshire, was fined £17,223.21 by the SRA for failing to have in place or maintain relevant documentation to prevent activities relating to money laundering and terrorist financing as required by money laundering regulations.

On the 11 April 2024, it was reported on the Law Society of England and Wales website that the southeast London firm Austen-Jones Solicitors was fined £15,200 by the SRA, after failing to make staff aware of AML requirements and failing to provide them with relevant training. The firm also failed to carry out firm wide risk assessment and to have in place or maintain the required AML documents for doing conveyancing work.

To view these articles in full see https://www.lawgazette.co.uk/news/firm-fined-17000-over-aml-breaches/5119280.article and https://www.lawgazette.co.uk/news/london-firm-fined-15k-for-failing-to-train-staff-in-aml/5119331.article

RETIREMENT – RELATED ARTICLE, CODE OF PRACTICE AND LEGISLATION

(1) – On the 25 April 2024, the Irish Legal News reported how a man forced to retire at the age of 66 has settled a discrimination claim with assistance from the Irish Human Rights and Equality Commission.

The man brought a claim under the Employment Equality Acts after his employer of more than a decade made him retire on reaching the age of 66.  He had alleged that his contract of employment and the terms and conditions of employment failed to set out an express retirement age.

Practitioners should be aware of the Code of Practice On Longer Working published by the Workplace Relations Commission https://www.irishstatutebook.ie/eli/2017/si/600/made/en/pdf available for employers and employees to seek to ensure that older workers, who wish to continue in employment, are not discriminated against in Irish workplaces.

To view the article see https://www.irishlegal.com/articles/man-forced-to-retire-at-66-receives-compensation-payment

(2) – On the 6 March 2024 the Minister for Enterprise, Trade and Employment Simon Coveney announced that the Government approved the drafting of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024:

  • the Bill will implement a key commitment included in the government’s response to the Pensions Commission Recommendations and Implementation Plan
  • it will deliver a statutory provision which will allow, but not compel, an employee to stay in employment until the State Pension age, which is age 66
  • the Bill provides that in general an employer cannot set a compulsory retirement age below the State Pension age if the employee does not consent to retire.  This element of consent reflects the fact that many employees may want to retire at the contractual retirement age
  • it also provides for certain exemptions, particularly in relation to retirement ages which are set out in law, or in limited circumstances where the employer can provide objective justification for the retirement age

To view the Government press release see https://www.gov.ie/en/press-release/d879d-government-approval-for-the-drafting-of-legislation-to-align-retirement-ages-in-employment-contracts-with-state-pension-age/

(3) – On the 5 April 2024, the Minister for Social Protection published the general scheme of the Automatic Enrolment Retirement Savings System Bill.  The Bill is expected to be introduced in the Oireachtas following the Easter Recess.  Follow this link https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub/ which explains what auto enrolment is?

WELLBEING

On the 8 April 2024, the Law Society of Northern Ireland launched a new wellbeing initiative for solicitors and staff.  It also updated its wellbeing toolkit.

To view this article see https://www.lawsoc-ni.org/wellbeing-support-launched-for-solicitors-and-staff and to view the wellbeing toolkit see https://www.lawsoc-ni.org/DatabaseDocs/new_4787657__law_society_wellbeing_toolkit250324.pdf

WELLBEING

In this month’s Law Society Gazette, Emma Clarke PhD candidate at the University of Canterbury, New Zealand writes an article titled ‘A Safe Space’, this article looks at the impact of psychological safety on solicitor wellbeing and turnover in a legal practice.  She argues that feeling safe to speak up is key, but it needs to be backed up by changes in work practices and specific employee supports.

SUGGESTIONS FOR CHANGE

Adjust the billable-units system – Adjusting billable units, as the primary measure of performance is likely to help improve employee wellbeing and retain valuable talent, particularly among early-career women.  Alternative business models for law firms include project-based models that measure success based on outcomes and provide clients with a fixed price, and subscription-based models where the price for legal work is agreed with the client and based on outcomes.  From an employment perspective, law firms could explore new methods of rewarding employee performance, such as the quality and outcome of their work, their contribution to value creation, the cultivation of strong client relationships, and the display of innovation and creativity in their roles.  Fostering psychological safety will help challenge gender stereotypes within legal practice by enabling employees to feel safe to speak up.  Enhancing psychological safety within law firms will also increase awareness of the real origins of work-related pressures and the detrimental effects of the billable-units system on lawyers. 

Foster a psychologically safe climate – Law firm leaders should develop a culture that counteracts the barriers brought on by formal hierarchical structures. When leaders behave in a way that minimises the perceptions of formal and informal hierarchies, this will improve perceptions of psychological safety and positively influence employee wellbeing.  Such behaviours will enable more open and honest communication among colleagues, shielding lawyers from stress and burnout.  Creating an environment of psychological safety in law firms, where errors can have high-stakes consequences, is challenging.  Empathetic leaders who foster a learning culture and are able to recognise and respond to their own and others’ emotions, while providing support during challenging situations, contribute to improved perceptions of psychological safety. Ultimately, these positive work environments protect lawyers from stressors and reduce turnover intentions, particularly among women.

Address unconscious bias – Women may be disadvantaged in the allocation and level of access to valuable resources that support them effectively in the development of their professional career and when coping with stress.  This could be due to the informal hierarchy in law firms as well as unconscious and gender biases that are present in legal practice.  Law firm leaders should acknowledge that men and women use time differently, and address gender differences in how resources at work are allocated.  Leadership training in unconscious and gender biases, emotional regulation skills, self-awareness, empathy, and recognising when colleagues are struggling is essential.  Understanding the different ways in which individuals, access resources in order to cope with stress will bring greater awareness of gender differences to law firms.  Law firm partners who seek professional development in these areas are likely to have more positive working environments, resulting in improved employee wellbeing and reduced turnover.’

To view this article see https://www.lawsociety.ie/globalassets/documents/gazette/gazette-pdfs/gazette-2024/april-2024-gazette.pdf#page=53

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