Minister Killeen Announces Commencement of the Employees (Provision of Information and Consultation) Act 2006

“Act heralds a new era of effective, two-way information and consultation practices”- Killeen.

Mr Tony Killeen TD, Minister for Labour Affairs at the Department of Enterprise Trade and Employment, today (Monday 24th July 2006) announced the signing of an Order to bring the provisions of the Employees (Provision of Information and Consultation) Act 2006 into operation on the 24 July 2006 (S.I. No. 382 of 2006). Regulations have also been made prescribing the 4^th September 2006 as the date from which the legislation will apply to undertakings with at least 150 employees and the date on or before which such undertakings must put pre-existing agreements in place if they wish to do so (S.I. No. 383 of 2006).

Announcing the commencement of the new legislation Minister Killeen said: “The Act heralds a new era of effective, two-way information and consultation practices in undertakings. It establishes a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees”.

“It encourages parties to agree their own arrangements for providing information and consultation that are best suited to their own particular circumstances. Fostering employee involvement generates tangible benefits for both employer and employees and can serve as a catalyst for improvements in organisational performance. The new legislation is a positive step on the road to the development of a greater sense of partnership at the level of the enterprise and to improved performance and competitiveness”, Minister Killeen added.

“This Department intends to implement, in conjunction with the Irish Congress of Trade Unions, the Irish Business and Employers Confederation and the National Centre for Partnership and Performance, a dissemination strategy for the new Act. It is also the intention of the Department to publish shortly an information booklet which will set out in a clear and user-friendly way the provisions of the Act. I have also requested the Labour Relations Commission under Section 42(1) of the Industrial Relations Act 1990, to prepare a Code of Practice to assist employers and employees in implementing the provisions of the new legislation”, the Minister concluded.

The Employees (Provision of Information and Consultation) Act 2006 transposes the EU Council Directive 2002/14/EC. It will apply to undertakings with at least 150 undertakings from 4 September 2006, to undertakings with at least 100 employees from 23 March 2007 and to undertakings with at least 50 employees from 23 March 2008.

You can view the act via the Industrial Relations section of the Department’s website:

http://www.djei.ie/employment/industrialrelations/

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LA 197

Note to Editors

The Act provides for the establishment of a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees. The Act will apply in accordance with the following timetable

Undertakings with at least 150 employees from 4 September 2006

Undertakings with at least 100 employees from 23 March 2007

Undertakings with at least 50 employees from 23 March 2008

At present the information and consultation rights of employees in Ireland are limited to specific situations for example collective redundancies and transfers of undertakings. This new Act is without prejudice to those existing rights to information and consultation in Irish law as provided for by the Protection of Employment Act 1977, as amended, (collective redundancies); Transfer of Undertakings Regulations 2003; and the Transnational Information and Consultation of Employees Act 1996.

Employers have the option under the Act of putting in place agreements on or before 4 September 2006 known as ‘pre-existing agreements’ which can be tailor-made to suit the culture and circumstances of their own company. Alternatively, the Act gives employees the right to request that an employer sets up an information and consultation procedure; once 10% of employees (subject to a minimum of 15 and a maximum of 100) make such a request, an employer must enter into negotiations to agree a procedure with employees. A third option is provided in the ‘Standard Rules’ of the Act, which involve the setting up an Information and Consultation Forum. This Forum comprises elected employee representatives.

Under the Standard Rules, employers are obliged to provide information and consultation on issues such as the probable development of the undertaking’s activities and economic situation; the structure and probable development of employment within the undertaking and any anticipatory measures envisaged; any decisions likely to lead to substantial changes in work organisation or contractual relations. Information must be given at such time, in such fashion and with such content as are appropriate to enable, in particular, employees’ representatives to conduct an adequate study and, where necessary, prepare for consultation.

The Act provides for the Labour Court to investigate disputes that arise under the legislation and provides for the enforcement of Labour Court determinations by the Circuit Court. It also provides strong protections for employees’ representatives in the performance of their duties under the Act.

The legislation provides for penalties of up to €3,000 or imprisonment for a term not exceeding 6 months or both on summary conviction for offences under the Bill and on conviction on indictment to a fine not exceeding €30,000 or imprisonment for a term not exceeding 3 years or both.

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