New employment rights bill to enhance worker protection

The final Employment Law Compliance Bill 2008, which was published on 18 March 2008, substantially revises the law in relation to the enforcement of employment rights. Moreover, the bill provides for the establishment of the National Employment Rights Authority (NERA) on a statutory footing with greater enforcement powers than its predecessor, the Labour Inspectorate.

Purpose of bill

Employers found in breach of existing employment laws could face fines of up to €250,000 or three years in prison, under the new Employment Law Compliance Bill 2008 (1.27Mb PDF) which was promised by the government under the [Towards 2016 (2.86Mb PDF)](http://www.taoiseach.gov.ie/attached_files/Pdf files/Towards2016PartnershipAgreement.pdf) social partnership agreement. Under the bill’s provisions, labour inspectors will also be able to conduct joint investigations with agencies such as the Revenue Commissioners, social welfare inspectors and Ireland’s National Police Service (An Garda Síochána).

The legislation, which has been approved by the Cabinet, means that employers must maintain comprehensive records of employment. It was described by the Minister for Enterprise Trade and Employment, Micheál Martin as ‘the most significant single piece of legislation introduced in the employment rights area in recent years’. It was also, he said, ‘a firm indication of this government’s commitment to the principles of social partnership’.

Essentially, the legislation will mean the more rigorous enforcement of existing employment laws, such as the national minimum wage, registered employment agreements, work permits and the protection of young persons in employment.

Bill receives ‘guarded welcome’ from trade union

Ireland’s largest trade union, the Services, Industrial, Professional and Technical Union (SIPTU) announced that it would not enter national talks on the next stage of Towards 2016 until the government delivered on its employment rights commitments under the first phase of that agreement (2006–2007). In what the union described as a ‘guarded welcome,’ its General President, Jack O’Connor, stated:

Assuming that the bill complies with the Towards 2016 agreement, and does not contain provisions that would be detrimental to trade unions, I would like to acknowledge that the government appears to be honouring its commitment to significantly enhance the protection afforded to vulnerable people in the labour market and to workers generally.

Despite this qualified welcome, most observers believe that publication of the Employment Law Compliance Bill has paved the way for talks on the next stage of Towards 2016.

Main provisions of bill

The main provisions outlined in the bill include:

• setting up the National Employment Rights Authority (NERA) – as an office within the Department of Enterprise, Trade and Employment (An Roinn Fiontar, Trádála agus Fostaíochta) dedicated to employment rights compliance – on a statutory footing by appointing a director and a tripartite advisory board;

• increasing the number of labour inspectors to 90 inspectors;

• strengthening inspection and enforcement powers and making other necessary provisions to secure compliance with employment law generally and the Employment Permits Acts 2003 and 2006 (including provision for compensation of up to two years’ pay and protection of bona fide complainants against victimisation) in line with ‘state-of-the-art’ provisions in, for example, revenue, social welfare and consumer protection legislation;

• specifying the statutory employment records to be kept by employers for all employees and the high penalties for failure to comply with this provision or for other breaches of employment law;

• fostering increased cooperation at workplace level to safeguard employment rights;

• supporting current monitoring and inspection activities in relation to compliance with the registered employment agreement in the electrical contracting sector;

• providing for exchanges of information between statutory enforcement authorities so as to facilitate joint investigations of employment suspected of contravening the law;

• strengthening the powers of the Minister for Enterprise, Trade and Employment to initiate investigations and publish the outcomes in cases of public interest;

• defining the maximum possible fines and custodial sentences for offences under this bill, which sets out penalties of up to €250,000 or imprisonment for up to three years on conviction of indictment.

A statutory advisory board will also be set up to assist and offer guidance to NERA. The purpose of the board will be to provide policy advice, and input and feedback to NERA on enforcement and compliance issues. It is also intended that the board would be able to commission its own research.

Awareness campaign

NERA launched its first national awareness campaign in January 2008 and since then has received regular publicity about its role on radio and television. Speaking at a recent conference, the Director of NERA, Ger Deering, stated that employment standards and rights are ‘not just a one-way street’. As well as being important for employees, he highlighted that ‘it is important for employers that other employers are compliant’.

The current rate of overall employer non-compliance, which stands at 18%, was described by Mr Deering as ‘far too high’. Non-compliance with the Organisation of Working Time Act was noted as a particular problem area – of the 2,659 inspections conducted under this act last year, breaches of the legislation were detected in 48% of cases.

Brian Sheehan, IRN Publishing