Dáil Éireann Debate, Thursday - 10 October 2013
28. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation his views on so-called zero hours contracts where employees are not guaranteed any regular minimum number of hours of employment; and if he will make a statement on the matter. [42725/13]
View answer30. Deputy Aengus Ó Snodaigh asked the Minister for Jobs, Enterprise and Innovation if he will ban the imposition of zero hour contracts on workers. [42593/13]
View answerI propose to take Questions Nos. 28 and 30 together.
Section 18 of the Organisation of Working Time Act 1997 contains a protection for employees who are employed on zero hour contracts. The zero hour protection applies to all employees whose contract operates to require them to be available whether they work on a casual basis or not.
This feature of the legislation covers situations where, for example, an employee is sent home if things are quiet or is requested to be available for work and is not, on the day, asked to work. Where an employee suffers a loss by not working hours he/she was requested to work or be available to work, the zero hours provisions of the Act ensure that he/she is compensated for 25% of the time which he/she is required to be available or 15 hours whichever is the lesser. The level of compensation may be impacted if the employee got some work. An expectation of work does not, however, entitle an employee to compensation.
The zero hours provision does not apply to lay-offs, short-time, emergency or exceptional circumstances, employee illness, employee on-call or where the employee is paid wages for making him/herself available for work.
Section 17 of the Organisation of Working Time Act 1997 sets out the requirements regarding notification to the employee of the times at which he/she will be required to work during the week. Generally, an employee is entitled to 24 hours’ notice of his/her roster for the week, although section 17(4) allows for changes as a result of unforeseen circumstances.
Section 19 of the Organisation of Working Time Act 1997 sets out an employee’s entitlement to paid annual leave equal to 4 working weeks in a leave year in which he or she works at least 1,365 hours (unless it is a leave year in which he or she changes employment) or one-third of a working week for each month in the leave year in which he or she works at least 117 hours or 8 per cent of the hours he or she works in a leave year (but subject to a maximum of 4 working weeks).
Zero hour contracts are covered by contract law. A zero hour contract must be entered into freely between the employer and the employee – it cannot be forced upon an employee. Zero hour contracts are, normally found in sectors such as retail, healthcare and hospitality. I am very conscious that in certain circumstances, they may be of great benefit to both employers and employees. They allow greater flexibility for both, reducing the employer’s pay costs, while workers can decide when and if they want to work. Such contracts may be preferred by employees who require flexibility to facilitate educational or other personal requirements and banning such contracts could do a disservice to these workers. However this is an area I will keep under review.
The deputy may have noted that recent recommendation of the Labour Court concerning home helps employed by the Health Service Executive (HSE). This recommendation has been accepted by both sides as a binding recommendation of the Court. The HSE is proceeding to give effect to the recommendation, which will result in the region of 10,000 home helps receiving annualised hours contracts from the HSE.
