asked the Minister for Labour if he will take steps to amend the Holiday Employees Act, 1961, to provide that cesser pay be assessed at one-fifth of a worker's weekly rate instead of the current practice of one-sixth of the weekly rate.
Ceisteanna—Questions. Oral Answers. - Holidays Act.
3.
I do not think that the amendment of the Holidays Act suggested by the Deputy would be appropriate. The operation of this Act will, however, be comprehensively examined in due course as part of the review of labour legislation which is being carried out by my Department.
Would the Minister agree this provision is creating a very difficult situation and the need to amend this particular section of the Act is long overdue?
There are two things involved. If this cesser pay scheme were to be amended to one-fifth we would reach a stage at which those who qualified for the full two weeks holiday would be getting less pay than a person who did not qualify for that period. A person who had 11 months employment would get eleven-fifths, a fifth more than a qualified applicant would get. In order to bring in the one-fifth it would have to be brought up to three weeks. I take it the Deputy has in mind the fact that since the five-day week came in the one-fifth should be the normal. There are two things involved.
Could the difficulty not be overcome by providing that ten-fifths would be the maximum while the law remains as it is. The worker is entitled to only a fortnight's holiday. Having regard to the fact that the vast majority work a five-day week, would not this be a reasonable thing to do? In civil actions, in which part of the claim includes loss of wages, the calculation of wages is based upon one-fifth of the weekly wage and not one-seventh or one-sixth as the social welfare code requires.
The fifth was the appropriate norm at the time to keep it below the two weeks holiday payment. If we move on to three weeks it will be automatic. As far as I can see, we will have to move on to the fifth.
Does the Minister intend to bring in legislation providing for three weeks holidays?
That is one of the things under examination in the comprehensive survey we are carrying out at the moment as well as a number of other important points.