I move: "That the Bill be now read a Second Time."
Social partnership involving employers, employees and the Government has been the driving force of change in the workplace in recent years, although I appreciate a number of significant disputes have recently required attention. The social partnership process has been backed up by a well balanced mix of employment rights and labour legislation, which, together with measures designed to stimulate employment, provides an appropriate framework for the purpose of achieving an efficient and competitive business environment.
Employment rights legislation covering a range of areas, such as conditions of employment, has an important role to play in promoting labour market stability and minimising conflict. In keeping with Ireland's voluntarist tradition, collective agreements are generally the primary method of determining conditions of employment. The role of statute law has generally been limited to that of setting minimum levels of protection or entitlement.
Over the past 20 or 30 years Ireland has been to the forefront in ensuring that reasonable conditions of employment exist which set out clearly for both employers and employees their respective entitlements. Successive Governments have enacted legislation in the area of employment rights reflecting changes in society and the work place at both national and international levels, through, for example, the transposition of EU directives and reflecting in domestic law the standard setting activities of the International Labour Organisation and the Council of Europe. Such legislation has covered a wide range of areas including minimum notice and terms of employment; protection against unfair dismissal; payment of wages; organisation or working time; safeguarding of employees' rights on the transfer of undertakings; protection of young persons at work; safety, health and welfare; redundancy entitlements; and minimum wage entitlements.
The organisation of working time is an area where employment rights legislation has dramatically affected people's work and lifestyles. This area covers issues such as holiday entitlements, rest periods, maximum working time and night work. For example, 100 years ago people were primarily concerned with the industrial rev olution, especially the mechanisation of industry. Scientific and technological advances have in the interim greatly improved how we work while at the same time changing social needs and demands have influenced the length of time in terms of days and hours per week spent in the work place. In the 1930s the State set the maximum number of hours per week people worked, at 55 hours. This has been reduced over the years and in 1997 the Organisation of Working Time Act, which implemented EU Council Directive 93/104/EC of 23 November 1993, set the maximum number of hours that may be worked in a week at 48.
All of these changes in employment rights legislation have also influenced employment trends and the numbers in employment, which have risen from 1.22 million in 1994 to 1.67 million today, an increase of one third. Part of this number includes 281,000 part-time workers. This represents 17% of the work force, with the majority being women. In 1997 women accounted for more than three quarters of all part-time workers and the incidence of part-time working among women increased from 16% of all women at work in 1983 to 23% in 1997. The numbers of part-time workers are expected to rise in the coming years and estimates suggest that for Ireland these figures could be as high as 500,000 by 2005.
The growth in part-time employment in the EU has continued up to 1998, the latest figures available. Total numbers of part-time workers in the EU have risen by an average of 14% overall during the period 1994-98, with 6% of men in employment and approximately 33% of women working part-time. However, these figures vary greatly from country to country. In the Netherlands the figure was 39% in 1998 while it was 6% in Greece, these being at the higher and lower ends of the scale respectively.
Despite the welcome trend in Ireland the economy is experiencing severe skills shortages. This is happening across Europe and to address this major problem the European Commission and the Council of Ministers have since 1998 and under the Luxembourg Process, each year requested member states to prepare an employment action plan setting out their respective Governments' proposals on how to improve the overall economic environment in terms of people at work. As part of this process member states' respective annual employment action plans are required to set out policies which, inter alia, facilitate opportunities for women who have raised their families and are keen to return to the work place, and formulate family friendly policies which facilitate, in particular, greater female participation in the work force. The European Commission guidelines for 2001, the fourth year of this process, set out a number of horizontal objectives aimed at building conditions for full employment in a knowledge based society. These detailed guidelines require member states to formulate policies involving a more employment friendly approach through a review, where necessary, of benefits, taxes and training systems and positive measures to maintain the skills and working capacity of older workers in particular, through sufficient access to education and training and flexible working conditions, such as part-time work.
With regard to the taxation system, the Government has in recent budgets substantially reduced the burden on the PAYE sector, thereby making the option of working more attractive. Furthermore, the Government, recognising the need for improved family friendly policies, introduced a series of initiatives, including the extension of paid maternity leave from 14 to 18 weeks and unpaid maternity leave from four to eight weeks, announced in last December's budget. Last July the Government also increased parental leave. Last week I moved the Second Stage of the Carer's Leave Bill, 2000, which provides for up to 65 weeks unpaid leave from employment to care for persons requiring full-time care and attention. This social legislation is a first for Europe and I expect its early passage through the House in the coming weeks.
With regard to developing policies to facilitate older workers, recent research indicates, for example, that by 2020 the numbers of people in Ireland aged 65 and over will be approximately 700,000. At a recent conference held under the auspices of the Swedish EU Presidency, entitled Work Life, 2000 – Quality of Work, a number of speakers highlighted the need for Governments across Europe to fill job shortages through innovative policies which would involve people working beyond the current retirement age of 65 on a part-time basis. In this connection three types of measure have been introduced in some member states in recent years to reduce the extent of early retirement and to encourage people to remain longer in work. These include increasing the official age of retirement or eligibility to a full pension; the introduction of partial retirement schemes which enable older employees to work part-time while receiving a partial pension and so withdraw gradually from employment; and the provision of incentives to encourage businesses to retain older employees in work for longer.
The scenario I have just painted set us all both a challenge and an opportunity. In this context the timing of our discussion on this Bill is, therefore, opportune. The Bill seeks to implement the provision of EU Directive 97/81/EC of the Council of the European Union concerning the Framework Agreement on Part Time Work concluded by the general cross-industry organisations at European level – the UNICE, the Union of Industrial Employers Confederations of Europe, the CEEP, the European Centre of Enterprises with Public Participation, and the ETUC, the European Trade Union Confederation. The directive was adopted by the Council of Ministers on 15 December 1997 and was to have been implemented in member states not later than 20 January 2000. The Department of Enterprise, Trade and Employment notified the European Commission of the intention to postpone the implementation date by up to one year, that is, 20 January 2001, as allowed for by the directive, to take account of special difficulties.
The main objectives of the directive are to provide for the removal of discrimination against part-time workers, to improve the quality of part-time work, to facilitate the development of part-time work on a voluntary basis and to contribute to the flexible organisation of working time in a manner which takes into account the needs of employers and workers. A tripartite working group, including representatives from the social partners, IBEC and the ICTU, and relevant Departments, the Departments of Finance, Social, Community and Family Affairs and Enterprise, Trade and Employment, was established to discuss the measures necessary for the implementation of the directive in this country. The deliberations of the group have contributed to and influenced the composition of the Bill. I thank ICTU and IBEC for their work at European and national level in framing the Bill, which will have a major social impact in Ireland in the years ahead.
The scope of the directive is expressed as applying to part-time workers who have an employment contract or employment relationship as defined by the law, collective agreement or practice in force in each member state. In this context, Irish labour law covers persons employed under contracts of service and agency workers. The directive provides that, after consultation with the social partners, member states may, for objective reasons, provide for the exclusion wholly or partly from the proposals of part-time workers who work on a casual basis. The directive requires the implementation in member states of measures guaranteeing that part-time workers may not be treated less favourably than full-time workers. It also requires the removal of discrimination against part-time workers where such exists and contains measures aimed at improving the quality of part-time work.
The provisions of the Bill are influenced by the terms of the directive. In addition, we have had detailed discussions with the social partners, ICTU and IBEC, and both support the intent of the Bill. ICTU and IBEC have both raised a number of issues, mainly of a technical nature, which are being considered and which we can discuss further in committee. In this context, I would like to mention specifically the pension entitlements of part-time workers. The Bill honours the Government's commitment in the Programme for Prosperity and Fairness that the definition of remuneration in the Bill would include occupational pensions. However, in terms of practicality, section 9(4) provides that, in so far as it relates to a scheme or arrangement, the entitlement of a part-time employee under section 9(1), that is, not to be treated in a less favourable manner than a comparable full-time employee, shall apply only to such part-time employees who normally work more than eight hours in a week.
I will outline in detail the main provisions of the Bill. Section 1 is a standard provision dealing with the short title, collective citation and construction of the Bill. Section 2 provides that the Bill will come into operation on a day or days to be prescribed. Section 3 sets down the main definitions associated with the Bill. Section 4 empowers the Minister for Enterprise, Trade and Employment to make regulations and orders prescribing any matter or thing which is referred to in the Bill as prescribed or to be prescribed or for the purpose of enabling any provision of the Bill to have full effect. Section 5 repeals the Worker Protection (Regulator Part-Time Employees) Act, 1991. Section 6 is a standard provision in legislation stating that the expenses incurred by the Minister in connection with the administration of the Bill shall be paid out of money provided by the Oireachtas.
Section 7 deals with the definitions associated with Part 2 of the Bill. Section 8 provides that each relevant enactment, as defined in section 3, shall apply to a part-time employee in the same way as it applies, other than by virtue of the Bill, to an employee to whom that enactment relates. Section 9 provides that, generally, a part-time employee shall not be treated less favourably than a comparable full-time employee in respect of his or her conditions of employment. Section 9(2), however, provides that a part-time employee may, in respect of a particular condition of employment, be treated less favourably than a comparable full-time employee provided that treatment is based on objective grounds. Also, section 9(4) provides that a part-time employee who normally works less than 8 hours per week may be treated less favourably than a comparable full-time employee in relation to pensions.
Section 10 provides that a benefit accorded to a part-time employee under section 9(1) shall be on the basis of the principle of pro rata temporis, that is, shall be related to the proportion which the normal hours of work of that employee bears to the normal hours of work of the full-time comparator concerned. Section 11 provides that a part-time employee who works on a casual basis, as defined in the section, may be treated less favourably than a comparable full-time employee if objective grounds exist to justify such less favourable treatment. Section 11(6) provides that the Minister shall, from time to time, review the operation of this section and may, following such a review, prescribe a class or classes of such employee to be a class or classes of employees to whom this section shall not apply.
Section 12 provides that a ground for treating an employee less favourably shall not be regarded as an objective ground for that purpose unless it is based on considerations other than the part-time status of the employee. The less favourable treatment involved for the employee must be for the purpose of achieving a legitimate objective of the employer, and such treatment must be appropriate and necessary for that purpose.
Section 13 provides that the Labour Relations Commission may, and at the request of the Minister, in order to identify obstacles to a person being able to perform part-time work, study every industry and sector of employment and make recommendations as to how obstacles identified in such study could be eliminated. The commission shall report to the Minister on any study and shall publish such study and recommendations. Section 13(4) provides that, in drawing up recommendations, the commission shall invite oral or written submissions from appropriate organisations representative of employers and employees and shall take account of such submissions in preparing its recommendations.
Section 14 provides that a provision in any employment agreement shall be void in so far as it is inconsistent with any provision of the Bill. Section 15 provides that an employer shall not penalise an employee for having lawfully opposed an Act which is unlawful under this Bill. Section 15(2) states that penalisation for this purpose includes dismissal, unfavourable change in conditions of employment or any unfair treatment, including selection for redundancy. An employee may now seek relief against such penalisation under this Bill and under the Unfair Dismissals Acts.
Section 16 provides that a complaint by an employee, or by a trade union of which the employee is a member, that the employer has contravened sections 9 or 15 of the Bill in relation to that employee, may be presented to a rights commissioner. The rights commissioner shall issue a written decision in the matter and communicate that decision to the parties. The decision of the rights commissioner may require the employer to pay compensation, subject to a limit of two years of the employee's remuneration. A complaint to a rights commissioner must be made within six months of the date of contravention of the Bill. This period may be extended by a further 12 months if the commissioner is satisfied that failure to refer the case within six months was due to reasonable cause. The hearing before the rights commissioner shall be conducted in private.
Section 17 provides that a decision of a rights commissioner may be appealed to the Labour Court within six weeks of the date of the decision. The Labour Court shall issue a determination in writing affirming, varying or setting aside the decision of the rights commissioner. The Labour Court may request the Minister to refer a question of law arising in proceedings before it under this section to the High Court for final and conclusive determination. Where a decision of the rights commissioner has not been carried out by the employer, and an appeal against the decision has not been brought within the time allowed for doing so, the employee may, within six weeks after the expiry of that time, refer the complaint to the Labour Court and the Labour Court shall, without hearing any evidence, make a determi nation to the like effect as the decision of the rights commissioner.
Section 18 provides that, where an employer fails to implement a determination of the Labour Court within six weeks from the date it is communicated to the parties and the determination has not been appealed within the appropriate time limit, the Circuit Court shall, on application to it by the employee concerned, a trade union of which the employee is a member, or the Minister, and without hearing any evidence, make an order directing the employer to implement the determination.
Section 19, relating to prosecution, is a technical section relating to the evidence of a person's failure to attend before, to give evidence or to produce documents to the Labour Court.
Section 20 confirms that Irish employee protection legislation conforms to the requirements of Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services. In this regard, the section provides that a range of employee protection legislation applies to workers posted to work in this country, both within the meaning of the directive and otherwise, in exactly the same way as it applies to Irish workers covered by the legislation.
Section 21 provides for an amendment of section 14(2) of the Protection of Employment Act, 1977 – relating to collective redundancies – to increase the amount of the fine provided for therein from £3,000 to £10,000 in regard to an indictable offence.
As Minister with responsibility for labour affairs, I am satisfied that the right to reasonable conditions of employment should and will continue to be enshrined in employment rights legislation. It is our duty as elected and accountable legislators to play a proactive approach in ensuring any such future legislation reflects the needs and expectations of both employers and employees, is framed in such a way as to respond to the needs of society as a whole and reflects the ongoing changes taking place at an enormous pace in the labour market.
The Protection of Employees (Part-Time Work) Bill, 2000 is, without doubt, a major change in our employment rights legislation and will change the employment landscape in the years ahead. There is an obligation on us as legislators to move ahead with its swift passage through the Houses. Right now there are some 270,000 part-time employees waiting for its enactment so that they can continue to work in the knowledge that they now, for the first time, will have statutory entitlements which will facilitate their continuation in employment and encourage even higher numbers of part-time workers onto the labour market in the years ahead, for the reasons I have outlined.
Clearly there is strong evidence that part-time work will become more common in the years ahead. Some of the figures I outlined, particularly in relation to older people returning to the workforce, are revealing. There has been much debate about our role in Europe but in this regard we are in tandem with Europe. I regularly attend the Social Affairs Council and I am conscious of the strong influence Europe has on Ireland in this area. It is a positive influence and is in accord with the way Ireland is developing.
I am delighted to be able to bring forward this legislation. I explained in my replies to various parliamentary questions the reasons for some of the delays. There are also issues my colleagues in the House will be anxious to deal with on Second and Committee Stages and I will be happy to listen to their contributions. I commend the Protection of Employees (Part-time Work) Bill to the House.