2015 could be the busiest year ever for employment legislation

The Government has published its legislative agenda for the first half of 2015.  If all goes to plan, this year could well be the busiest year ever for employment legislation in Ireland.

Low Pay Commission

The first item to be enacted is likely to be legislation to establish a Low Pay Commission.  The Government has already started the process of recruitment for this Commission on a non-statutory basis.  The Commission’s role will replace that of the Labour Court in the context of the national minimum wage.  When established, this new Commission will have a leading role in setting the national minimum wage by making recommendations to the Minister for Jobs, Enterprise and Innovation as to what the minimum wage should be. 

This legislation may have relevance to certain sectors previously governed by joint labour committees (JLCs). JLCs had, until 2011, set special sectoral minimum wages, higher than the national minimum wage. The system was struck down by the High Court in 2011 and restored by the Oireachtas (with significant amendments) in 2012. Employers in several of the sectors formerly regulated by JLCs have, to date, declined to participate in the new structures. This means that sectors such as hotels, catering and retail grocery may fall out of the JLC system and into the Low Pay Commission structure.  

In a separate development, the Industrial Relations Acts,  are due for two separate pieces of amending legislation:  

Registered Employment Agreements/Registered Employment Orders

The first change will deal with the former registered employment agreement (REA) mechanism.  This was a system which existed from 1946 until it was struck down by the Supreme Court as unconstitutional in 2013. This system allowed employers and unions to make agreements relating to pay and conditions which – when registered by the Labour Court – became legally enforceable.  This system was the pay-setting mechanism for sectors such as construction, electrical contracting and retail drapery in Dublin.  

A revised system will be introduced and will have two separate strands.  

REAs will return in a limited way: agreements within a single enterprise may be registered in a manner similar to the former system.  

Sector-wide pay-setting will be done by means of "registered employment orders” (REOs).  These will differ from the former system in that the Labour Court will be able to set pay even in the absence of agreement of the relevant parties. 

The second change will deal specifically with the Industrial Relations Act 2001.  Readers will recall from our detailed bulletin in December that this Act provides a mechanism for trade unions to bring cases to the Labour Court on behalf of workers employed by companies who do not have a practice of collective bargaining negotiations.  The Act of 2001 has not been used much since the Supreme Court’s Ryanair decision of 2007. The proposed amendments are likely to raise the profile of the Act and may prompt a significant increase in litigation under its provisions. 

Workplace Relations Bill

The Workplace Relations Bill 2014 is likely to be enacted in the spring. This will be the biggest reform of employment rights and industrial relations institutions ever enacted in Ireland.  In previous bulletins we have provided detailed commentary on the content of the Bill. Many of its provisions relate to institutional issues, such as who will fill the roles in the new bodies and how contentious cases will be processed.  Several other aspects of the Bill will have significant practical effects on employers and workers. The Bill will give significant new enforcement powers to the body currently known as NERA.

Note: Accrual of annual leave during periods of sick leave

The 2014 Bill will also make some changes to substantive employment legislation, most notably by providing that annual leave will accrue during periods of sick leave.

For more information on any of the legislation above, please contact Elaine Kelly, or Loughlin Deegan from our Employment Law Team.