A new era for Employment Rights

Tony Killeen, T. D., Minister for Labour Affairs, today (Tuesday 29^th August 2006) outlined his vision for Employment Rights compliance in Ireland. Employment Rights compliance rightly formed a major element of the 10 year framework draft Social Partnership Agreement – Towards 2016. The draft agreement is currently with the Social Partners with a view to ratification.

Minister Killeen commended the draft agreement particularly in relation to Employment Rights compliance by saying “Towards 2016 strikes the right balance between legitimate interests and objectives and will build confidence for the future in our rapidly changing workplaces”. Employment Rights provide stability in relationships and engender the confidence necessary to support adaptability and change which are the requirements of the workplace of the future where we seek to win the ‘race to the top’ in pursuit of high productivity activities to support associated high pay.

“Towards 2016 enables all parties to contribute to establishing a shared ‘level of ambition’ in relation to this critical issue,” said Minister Killeen. Minister Killeen commended the Social Partners on agreeing ambitious measures to improve an extensive range of Employment Rights as well as a new compliance model which will inform people of their entitlements, provide simpler redress systems, coupled with increased penalties for non compliance and supported by stronger enforcement. Minister Killeen said, “This joint approach to compliance is the right approach, as it is rooted in real workplaces. It is a result of our successful social partnership which through its capacity to resolve issues has established shared ambitions providing for proper Employment Rights standards, associated fair procedures while retaining flexibility of response as well as avoiding over regulation of the labour market”

All are agreed that compliance must have the active support of the Social Partners. It must educate people and promote entitlements with an emphasis on workers from overseas. Confidence in the maintenance of Employment Rights will be assured by having simple, independent and workable means of redress supported by a fully resourced inspection regime to ensure compliance.

The parties have agreed a major package of measures which will include the establishment of a new statutory Office dedicated to Employment Rights compliance, a trebling of the number of Labour Inspectors to 90 together with more staffing resources for the adjudicative bodies such as the Labour Court, the Employment Appeals Tribunal and the Rights Commissioner Service so as to improve customer outcomes – “I will be watchful to ensure customer service outcomes improve against challenging targets” commented Minister Killeen.

All will have a role in using their knowledge and networks to further compliance. Joint operations with organisations concerned with compliance in workplaces will also be undertaken e.g. the Revenue Commissioners and the Department of Social and Family Affairs. Particular attention will be paid to the status of self-employment. To ensure responsiveness the compliance system will continue to have inputs from the Social Partners and other interested parties.

Minister Killeen maintained that “no matter how good a compliance system we have there will always be instances where issues require to be resolved – fairly and quickly – as such matters are often harmful to the individual and damaging to employment relationships. I am particularly pleased that the new compliance model has found favour with the Social Partners as it will not only be effective in promoting compliance it will also retain the fairness and impartiality so necessary while providing for ease of understanding and use”. The informal yet fair and effective Rights Commissioner Service will be the initial point of contact with the adjudication process. Penalties for non-compliance will range up to €250,000 with adjudication bodies being able to award up to two years pay by way of redress.

Towards 2016 also provides for an agreed structured response in the event of situations of exceptional collective redundancies. “This demonstrates the resilience and capacity of Social Partnership to act responsibly in situations which could be damaging to good Industrial Relations and responds to widespread public concerns while being mindful always of the necessity to ensure sustainable employment and conditions”, commented Minister Killeen.

Much employment arises because of procurement by the State of construction services particularly to meet national objectives. Towards 2016 marks the agreement between the Social Partners that contracts for such services should reinforce Employment Rights standards and facilitate compliance. “This, maintained Minister Killeen, is a comprehensive and coordinated response by all parties to ensure that all people working on such projects, be they main contractors or sub-contractors, get the agreed terms and conditions while meeting requirements for competitive tendering and value for money”.

As part of the comprehensive package of Employment Rights compliance measures legislation will be prepared to regulate Employment Agencies while the Joint Labour Committees, which establish terms and conditions for a range of sectors, will be modernised. “It is a reflection on the extent of change in Irish society that the Social Partners have agreed to work together to develop a code of practice for people employed in the home” said Minister Killeen.

“Of more interest to the generality of people is the agreement by the Social Partners to make a joint recommendation to Government as to the amount of the increase in the National Minimum Wage which will take effect on 1 January 2007”.

The extent of agreement on Employment Rights compliance, will according to Minister Killeen, “introduce a new era of Employment Rights compliance with associated beneficial consequences which will assist Ireland to reach the ambitious, yet attainable, social and economic objectives of Towards 2016”.

Minister Killeen concluded by saying, “Employment Rights compliance affects all of us in our workplaces; it impacts on workplace relationships and, if maintained, can be a major contributor to gaining our shared vision of the future. It is against this background that I earnestly hope that Towards 2016 will be ratified by all Social Partners as an agreed approach is always the best approach to workplace issues”.

ENDS

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