Minister Fahey Announces Signing into Law of New Legislation to Protect Fixed-Term Workers

Mr. Frank Fahey TD, Minister for Labour Affairs, today (16 July 2003) welcomed the signing on Monday 14 July 2003, by the President of the Protection of Employees (Fixed-Term Work) Act 2003.

The Act which has immediate effect, implements an EU Directive and gives employment rights entitlements to fixed-term contract workers.

Minister Fahey said "The new Act provides for the removal of discrimination against fixed-term workers - particularly in relation to pay and pensions - where such exists and also guarantees that fixed-term workers may not be treated less favourably than comparable permanent workers."

The Minister said: "The latest statistics available indicate that approximately 70,000 workers or just under 4% of the Irish labour market are employed on fixed-term contracts many of whom are in the public sector i.e. teaching and healthcare workers".

The new Act also improves the quality of fixed-term work by:

• putting limits on the duration of fixed-term contracts renewals with the objective being to move such workers into permanent employment - unless there are objective grounds by employers to justify the renewal of such contracts;

• obliging employers to inform fixed-term workers about vacancies for permanent employment that become available in the work-place; and

• obliging employers to include fixed term-workers when calculating the thresholds above which workers' representative bodies may be constituted in an undertaking, as required by national laws.

Minister Fahey thanked both ICTU and IBEC for their inputs to the process of drafting the Directive at European level; during the work of the Tripartite Group set up by his Department to examine thoroughly the measures necessary for the implementation of the Directive in Ireland and more recently when the Bill was going through both Houses of the Oireachtas.

Minister Fahey paid tribute to members of the Oireachtas. He said: "The contents of the Bill were the subject of constructive discussion and debate in both Houses of the Oireachtas. A number of important amendments - by both the Government and Opposition members - were accepted which improved the thrust of the Bill from that originally published on 21 May last. This constructive approach had facilitated its speedy enactment before the Summer Recess".

Note for Editors

Main Provisions of the Protection of Employees (Fixed-Term Work) Act 2003

The purpose of the Act which implements Directive 1999/70/EC of 28 June 1999 concerning the Framework Agreement on Fixed-Term Work concluded by UNICE, CEEP and the ETUC is:

to provide for the improvement of the quality of fixed-term work by ensuring the application of the principle of non-discrimination (i.e. fixed-term workers may not be treated less favourably than comparable permanent workers) and

to provide for the removal of discrimination against fixed-term workers where such exists and the establishment of a framework to prevent abuse arising from the use of successive fixed-term employment contracts.

The Act was signed by the President on Monday 14 July 2003 and comes into effect from that date.

The Act applies to any Fixed-Term Employee working under a contract of employment, holding office under, or in the service of, the State including members of the Garda Siochana, civil servants and employees of any health board, harbour authority or vocational education committee. The Act does not however, apply to agency workers placed by a temporary work agency at the disposition of a user enterprise; apprentices (agency workers employed directly by employment agencies are covered by the Act); a member of the Defence Forces; a trainee Garda or a trainee nurse.

The Act provides that a fixed-term employee may be treated in a less favourable manner than a comparable permanent employee where such treatment can be justified on objective grounds.

A ground would be considered as an objective ground for treatment in a less favourable manner (including the renewal of a fixed-term employee's contract for a further fixed term), if it is based on considerations other than the status of the employee as a fixed-term employee and the less favourable treatment is for the purpose of achieving a legitimate objective of the employer and such treatment is necessary for that purpose.

If the treatment of the fixed-term employee is based on the fixed-term status of the employee then it is not an objective ground for less favourable treatment.

The Act provides that a fixed-term employee shall be informed in writing by his or her employer as soon as practicable of the objective condition determining the contract i.e. whether it is

• arriving at a specific date;
• completing a specific task; or
• the occurrence of a specific event.

The Act provides that where an employer proposes to renew a fixed-term contract the employee shall be informed in writing, not later than the date of renewal, of the objective grounds justifying the renewal of the fixed-term contract and the failure to offer a contract of indefinite duration.

The Act provides, that where a fixed-term employee completes or has completed three years of continuous employment with his/her employer or associated employer the fixed-term contract may only be renewed once more by the employer for a period of no longer than one year. This will mean that on the date the Act comes into force, existing employees on fixed-term contracts who complete or who have completed three years continuous service with their employer may have their contracts renewed only once more for no longer than one year - following which the next renewal shall be deemed to be a permanent contract - unless there are objective grounds justifying the renewal.

The Act also provides that where, in the case of new fixed-term employees recruited after the enactment of the Act, a fixed-term employee is employed by his or her employer or associated employer on two or more continuous fixed-term contracts and the date of the first such contract is subsequent to the date on which the Act is passed, the aggregate duration of such contracts shall not exceed 4 years - unless there are objective grounds justifying the renewal.

The Act provides that an employer shall not penalise a fixed-term employee where he/she has been dismissed from his/her employment and the dismissal is wholly or partly for, or connected with, the purpose of avoiding that a fixed-term contract is deemed to be a contract of indefinite duration (i.e. permanent) under the provisions of the Act dealing with the abuse of successive fixed-term contracts.

An employee may refer a dispute in relation to an entitlement under the Act to a Rights Commissioner of the Labour Relations Commission for adjudication. A decision of the Rights Commissioner can be appealed to the Labour Court for legally binding determination.

Where further information is required, interested parties should refer to the Act or contact the Employment Rights Information Unit, Department of Enterprise, Trade and Employment, Davitt House, 65A Adelaide Road, Dublin 2.Telephone: (01) 6313131; Fax: (01) 6313267. Lo-call phone number (if calling from outside the (01) area) 1890 201615. Copies of the Information Booklet may be obtained from the Information Unit and are also available on the Department's website: www.djei.ie or E-mail: erinfo@entemp.ie

IMPORTANT NOTICE FOR EMPLOYEES AND EMPLOYERS

PROTECTION OF EMPLOYEES (FIXED-TERM WORK) ACT 2003

The above Act was signed into law on 14 July 2003 by the President - with immediate effect.

PURPOSE OF THE ACT

The purpose of the Act which implements Directive 1999/70/EC of 28 June 1999 concerning the Framework Agreement on Fixed-Term Work concluded by UNICE, CEEP and the ETUC is:

• to provide for the improvement of the quality of fixed-term work by ensuring the application of the principle of non-discrimination (i.e. fixed-term workers may not be treated less favourably than comparable permanent workers) and

• to provide for the removal of discrimination against fixed-term workers where such exists and the establishment of a framework to prevent abuse arising from the use of successive fixed-term employment contracts.

FURTHER INFORMATION ON THE ACT

Interested parties should refer to the Act or contact the Employment Rights Information Unit, Department of Enterprise, Trade and Employment, Davitt House, 65A Adelaide Road, Dublin 2.Telephone: (01) 6313131; Fax: (01) 6313267. Lo-call phone number (if calling from outside the (01) area) 1890 201615. Copies of our Information Booklet on the Act may be obtained from the Information Unit and are also available on the Department's website: www.djei.ie or E-mail: erinfo@entemp.ie

ENDS