The main purpose of this Bill is to increase from two weeks to three the workers' minimum annual holidays entitlement with pro rata entitlements for periods of employment of less than a year. In other words, the Bill is a synthesis of the practices followed in good employment. Provisions in the Bill also deal with holiday cesser pay and with public holiday entitlements on a basis broadly similar to the 1961 Act.
The provisions in the Bill do not apply to agricultural workers. They are covered by separate legislation administered by the Agricultural Wages Board. You will be aware that the Government have already announced that the legislation which determines the wages and holidays of agricultural workers is under review in consultation with the interests concerned. I have taken power in the Bill, with appropriate ancillary and supplemental provisions, to bring agricultural workers within its scope by affirmative order of the Oireachtas if it should be considered appropriate to do so.
Since the existing minimum statutory holiday entitlements of two weeks' leave and six public holidays were prescribed in the Holidays (Employees) Act, 1961, the majority of workers have, through the collective bargaining system, secured an additional week's holidays. The general position now is that the three weeks minimum holiday obtains in good employments throughout Irish industry. This Bill will, however, assist those workers who cannot invoke the aid of a trade union and who are deprived of holiday entitlements by virtue of their weak bargaining position. Apart from increasing holiday entitlements, the Bill has a number of other features which are an improvement on the 1961 Act. It prescribes a standard "leave year" beginning on 1st April each year, which will apply to all workers. This replaces the provision in the 1961 Act whereby leave entitlements were related to a worker's "employment year" based on the date on which he took up employment and anniversaries of that date. Thus, employees in the same firm could have different "employment years" depending on the date on which they started work.
This Bill, if enacted, will simplify matters inasmuch as leave entitlements for all employees would be calculated in future by reference to the same "leave year" from 1st April to 31st March. The qualifying conditions for entitlement to annual leave have also been eased. Under the 1961 Act, an industrial worker had to complete 1,600 hours during his "employment year" in order to qualify for the two weeks' annual leave. There was no provision for proportionate leave entitlement for an employee working less than 1,600 hours except where he ceased employment.
Under this Bill an employee will be entitled to paid leave in a leave year in which he has completed at least one "qualifying month of service", comprising a calendar month in which he works at least 120 hours, or 110 hours if under 18 years of age. The prescribed minimum of 120 hours makes allowance for the general reduction which has taken place in the normal working week since 1961 and for possible absences due to sickness, short-time working and other causes. For 12 qualifying months of service the worker is entitled to three weeks' leave, and he gets proportionately less for 11 or fewer qualifying months. If he has eight or more qualifying months of service, he is entitled to an unbroken holiday-period of two weeks.
Alternatively, where a worker might not qualify for full holiday entitlements on the monthly basis because he had not worked at least 120 hours in every month, he can elect to have his entitlement calculated by reference to the number of hours worked on an annual basis. If he works 1,400 hours in a year for the same employer, which could include up to 480 hours wet-time, he can qualify for full holiday entitlement. Casual and short-term workers could also qualify for holidays on either the monthly or annual qualifying criteria.
There is provision for excluding from an employee's annual leave period a day on which he is sick, provided he furnishes a medical certificate. There was no corresponding provision in the 1961 Act. The Bill also removes the distinction between the qualifying conditions for leave purposes as between "domestic" and "non-domestic" workers which existed under the 1961 Act. It was one of the anomalies of earlier legislation on holidays that one of the most exploited sections of our workforce, domestic workers, had this underprivileged position enshrined in the law. This has now been corrected.
Provisions in the Bill about public holiday entitlements and for compensation, where workers opt, or are obliged, to work on public holidays are somewhat similar to those in the 1961 Act. However, a full-time employee automatically qualifies for public holiday entitlements if he is in employment at that time; he does not have to work for a specified minimum number of hours beforehand. This is an improvement compared with the 1961 Act.
The provision about leave arrangements permits an employer to decide when annual leave may be granted but only on certain conditions. These include consulting with the employee or his trade union at least one month beforehand and allowing the leave to he taken within the relevant "leave year" or within six months after it ends. Thus, for the leave year starting 1st April, 1974, holidays may be allowed in the 18 months between that date and 30th September, 1975. Flexibility of this kind is designed to benefit both the employer and/or the employee.
Sections 7, 8 and 9 of the Bill contain the usual provisions relating to prosecutions of offences and the recovery of moneys due to an employee. The provisions in section 10 and section 11 about the keeping of records and the enforcement powers of inspectors are similar to those in the 1961 Act. However, the provision about records has been made more precise to facilitate inspectors in checking compliance with the provisions of the Bill. A specific requirement has been placed on employers to keep records on annual leave for examination by inspectors.
In order to ensure that this legislation, as an instrument of social reform, retains a capacity to be adjusted in accordance with desirable social trends, I have taken powers under section 13 to modify provisions in the Act by regulations. There is also provision about consultation with the appropriate workers' and employers' organisations. There is also a requirement that drafts of regulations, for the purposes of section 2, must be laid before each House of the Oireachtas with a view to securing their approval by means of affirmative order. In this way, it will not be necessary to introduce amending legislation on each occasion when a major change is being made in relation to the "excluded categories" while ensuring at the same time that the Oireachtas retains full control over such changes.
Section 16 provides that, if the Bill is enacted, annual leave or public holiday entitlements shall no longer arise under the 1961 Act. That section contains transitional bridging provisions, however, whereby workers will be able to preserve title to any holiday entitlements acquired under the 1961 Act while, at the same time, they would be building up entitlements under this Bill, if enacted. In order to avoid very complex provisions which would be only of a temporary nature, a special formula was designed which would afford a worker a choice of two options when the proposed Bill comes into force. First, he can claim the statutory compensation in lieu of holiday entitlements, whether in respect of annual leave or public holidays, due to him under the 1961 Act in the same way as if his employment ceased on the day before the new Act comes into force. If he accepts the cesser pay involved, further holiday entitlements will accrue only under the new Act. Alternatively, with the agreement of both parties, he may carry over leave due to him under the 1961 Act into the new "leave year" as introduced in this legislation. This arrangement was included in order to give effect to my wish that no worker should suffer loss of benefit to which he would otherwise be entitled under the 1961 Act simply as a result of the new Bill being enacted.
As regards section 17 and the Schedule to the Bill, I should explain that following consultation with the Minister for Finance, it was decided that, in future, I should be responsible for administering legislation about public holidays. Under existing legislation, there are six "public holidays" to which the Bill applies. I have taken powers, however, to appoint, by regulations, new public holidays or to change an existing public holiday to a different day. I have also taken this opportunity to formally substitute the first Monday in June as a public holiday instead of Whit Monday. This will obviate the need to make an annual order changing it which was necessary under the present legislation. Similar flexible arrangements have been made in the case of Church holidays. I feel that flexible measures of this kind are desirable to avoid unnecessarily cumbersome legislative procedures.
I should like to say a word here about public holidays in general. The position is that up to recently, both Britain and Ireland, with six public holidays each, had the fewest public holidays of all EEC countries. Britain will now have seven as from 1st January next when New Year's Day will be added. As of now Italy has 17, Germany ten to 13, depending on the region, Belgium and Luxembourg ten, Denmark nine to ten, France five to ten and the Netherlands seven. These variations relate to regions. Clearly working people in Ireland will have to be brought closer to the European norm as regards public holiday entitlements. Naturally, from a position where we are lowest in the table this will require a phased approach in consultation with both sides in industry. The Government have decided in principle that the number of public holidays should be increased to seven. I am having consultations about the most appropriate choice of date for this extra public holiday and I will make an announcement as soon as these consultations have been completed.
This holidays legislation is the product of a great deal of consultation with both employers and trade unions. Its provisions are designed to provide that workers in a weak bargaining position, who cannot invoke the aid of a trade union, enjoy holiday entitlements which remain in line with those currently prevailing in good employment.
Looking at the Bill as a whole, the House will, I think, agree that its provisions represent a further legislative advance in the conditions of employment of a large number of Irish workers, an advance peacefully conceded. It is a very simple and straightforward piece of legislation which, at the same time, will afford flexibility for modifications in appropriate cases.
I am naturally anxious to have the Bill enacted well in advance of the beginning of the new "leave year" on the 1st April, 1974, to afford both workers and employers ample time to familiarise themselves with its provisions, and to enable them to make the necessary arrangements about leave entitlements on the new basis. For thesse reasons, I commend the Bill to the House and look forward to the speedy passage of all its stages.
