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Employment Rights

Dáil Éireann Debate, Thursday - 13 March 2014

Thursday, 13 March 2014

Questions (14, 34)

Kevin Humphreys

Question:

14. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation his plans to introduce measures to ensure staff do not have to pay rental fees to their employers for the provision of uniforms required for a position in the Irish labour market; his plans to legislate to regulate zero hour contracts; and if he will make a statement on the matter. [12010/14]

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Kevin Humphreys

Question:

34. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation his plans to prohibit the charging of staff for the purchase and provision of uniforms that they require for their job; his plans to ensure the protection of staff in low paid positions in the Irish economy; and if he will make a statement on the matter. [12009/14]

View answer

Written answers

I propose to take Questions Nos. 14 and 34 together.

The Payment of Wages Act 1991 establishes a range of rights for all employees, one of which is protection against unlawful deductions from wages. Subject to certain conditions set out in that Act, an employer may make a deduction from wages in respect of the cost of goods or services which are necessary to the employment, including, for example, the provision of uniforms. The Act provides, in particular, that any deduction must be required or authorised to be made by virtue of a term of the contract of employment, and that the employee be furnished with a copy of the relevant contract term. If that term was not in writing, then notice in writing of the existence and effect of the term must be given to the employee. It further provides that any deduction must be fair and reasonable having regard to all the circumstances, including the employee’s wages, and should not exceed the cost to the employer of the goods or services.

If an employee considers that an employer has not complied with the Payment of Wages Act, a complaint may be made to the Rights Commissioners Service of the Labour Relations Commission. I believe this represents a reasonable and balanced approach.

As regards the protection of staff in low-paid positions, further to a commitment in the Programme for Government, on 1 July 2011, the National Minimum Wage was restored to €8.65 per hour from the previous rate of €7.65. This restoration represents a significant commitment by the Government to protect the lowest paid and most vulnerable workers.

The Industrial Relations (Amendment) Act 2012 came into effect on 1 August 2012. The main purpose of the Act is to implement the commitment in the Programme for Government to reform the Joint Labour Committee (JLC) system. The Act provides for a radical overhaul of the system so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. It reinstates a robust system of protection for low paid and vulnerable workers in sectors which, prior to the July 2011 High Court ruling in the John Grace Fried Chicken case, had been covered by JLCs. On January 28 last I signed Establishment Orders following a Labour Court review of the existing JLCs.

As regards zero hours contracts, these contracts must be entered into freely by the employer and the employee – one cannot be forced upon an employee. In certain circumstances, they may be of great benefit to both employers and employees. Such contracts may be preferred by employees who require flexibility to facilitate educational or other personal requirements. However, this is an area I will keep under review.

It must be noted that Section 18 of the Organisation of Working Time Act 1997 contains a specific protection for employees on zero hour contracts. The protection applies to all employees whose contract operates to require them to be available whether they work on a casual basis or not. It 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 to 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. Claims of breaches of section 18 may be referred to a Rights Commissioner.

In addition, Sections 17 and 19 of the Organisation of Working Time Act may also be of particular interest to employees on zero hour contracts. Section 17 sets out the requirements regarding notification to the employee of the times at which he/she will be required to work during the week, and Section 19 sets out an employee’s entitlement to paid annual leave calculated based on hours worked.

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