Dáil Éireann Debate, Wednesday - 8 May 2019
1401. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection if she will review the provisions of the Employment (Miscellaneous Provisions) Act 2018 to ensure that the training rate of pay for adults over 20 years of age is protected in certain instances (details supplied). [18560/19]
Amharc ar fhreagraLegislation governing the national minimum wage is set down in the National Minimum Wage Act 2000 and the National Minimum Wage (Low Pay Commission) Act 2015. These Acts provide for the setting of a national minimum wage (NMW) and also provide that in specified circumstances, such as the case of younger workers and trainees, a reduced, sub-minimum rate may be applied.
In September 2015, the then Minister requested the Low Pay Commission to examine the appropriateness of the sub-minimum rates as provided for in the National Minimum Wage Act 2000 with regard, in particular, to their impact on youth unemployment rates and participation in education.
The Commission undertook a consultation process on this subject in line with its evidence based approach to making recommendations to Government. The consultation process was advertised nationally seeking submissions from interested parties, and the Commission sent a targeted email to a variety of interested parties seeking submissions, including the Irish Hairdressing Federation.
A number of further contacts were made with the Federation (both telephone and email) inviting the Federation to make a submission on this matter and to participate in the oral hearings to discuss the subject held by the Commission in February 2016.
The Commission received 15 submissions in total, none of which came from the hairdressing sector. The Irish Hairdressing Federation did not make a submission and did not participate in the oral hearings held by the Commission. The Commission's final report was published on 20 February 2018.
Having examined all available evidence and submissions, and considered a range of options, the Commission recommended the abolition of training rates. The Commission heard evidence in submissions of the training rates being paid in order to reduce wage costs rather than as part of a structured training programme. The Commission found that the lack of clear definitions around training rates left them open to abuse. In light of these considerations and the low usage of the training rates the Commission was of the view that training rates should be abolished. The Commission encouraged sectors to register for state approved apprenticeship programmes, which are under the remit of the Department of Education and Skills, if they felt that a period of structured training was required.
These recommendations were accepted by Government and the amendments to make the necessary legislative changes to the National Minimum Wage Act 2000 were implemented via the Employment (Miscellaneous Provisions) Act 2018. The changes came into effect on 4 March 2019.
The Low Pay Commission is an independent authoritative body on matters relating to the national minimum wage and I am confident that the Commission gave consideration to the impact of any recommendations it made in regard to training rates. I do not plan to reviews the changes introduced in March 2019.
