Minister Kelleher Launches Code of Practice on Information and Consultation

Information and Consultation Act to apply to undertakings with at least 50 employees from 23 March 2008

The Minister for Labour Affairs, Mr Billy Kelleher T.D. today (Thursday 20^th March 2008) launched a Code of Practice on Employees (Provision of Information and Consultation) Act 2006. The purpose of the Code is to assist employers, employees and their representatives to develop effective arrangements for information and consultation in accordance with the provisions of the Employees (Provision of Information and Consultation) Act 2006.

Launching the Code Minister Kelleher said: “In is important that workers’ entitlements are spelt out and clearly understood. The Labour Relations Commission has consulted closely with ICTU and IBEC in drawing up this Code which will greatly assist in giving both employers and employees a clear understanding of what is required under the Act”.

Announcing the publication of the Code, the Minister drew attention to the fact that those companies with at least 50 employees will now fall within the scope of the Employees (Provision of Information and Consultation) Act 2006 from 23 March 2008. The Act already applies to undertakings with at least 100 employees and those with 150 employees.

The Code draws on a number of sources - the Employees (Provision of Information and Consultation) Act 2006; consultation with the social partners, and the experience of the Labour Relations Commission drawn from the delivery of its advisory, conciliation, dispute resolution and research services.

Minister Kelleher said “the Code provides employers and employees with user-friendly and practical information on the provisions of the Act and complements the Guidance Booklet which the Department published last year. The Act establishes a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees. The aim of the legislation is to ensure that information and consultation is provided by employers systematically so that employees are able to acquire an informed understanding of the challenges faced by the business.

EU and national research demonstrates the tangible benefits that effective and meaningful information and consultation arrangements can bring to both business and the individual. “Establishing and developing effective information and consultation arrangements at the level of the workplace leads to a sense of involvement for employees, and a greater understanding on their part of the environment within which their undertaking operates. This in turn can help organisations to anticipate and manage change, facilitate workplace adaptability and develop partnership at the level of the enterprise, all of which are vital in maintaining and improving competitiveness”.

“While the legislation provides statutory rights and obligations, the Code of Practice will assist organisations to consider information and consultation as intrinsic elements to good employee/employer relations, and leading to positive impacts on performance and the workplace” the Minister added.

“ I urge, in particular, all employers and employees to carefully read this Code of Practice which will prove to be an invaluable resource. What this Code of Practice does is provide both employer and employee with the means to identify best practice in the area of information and consultation”, the Minister concluded

The Code is available from the website of the Department of Enterprise, Trade and Employment: at:

http://www.djei.ie/publications/sis/2008/si132.pdf

ENDS/LA272

Note to Editors

The Minister for Labour Affairs requested the Labour Relations Commission to prepare a Code of Practice under subsection (1) of section 42 of the Industrial Relations Act 1990 (No. 19 of 1990). The Labour Relations Commission prepared the Code in conjunction with the social partners. The Minister intends to make an Order to promulgate the Code under the 1990 Act.

A Code of Practice is admissable as evidence in any proceedings before the Labour Court, the Labour Relations Commission, the Employment Appeals Tribunal, a rights commissioner or an equality officer. A failure to observe any part of a Code of Practice will not in itself render a person liable to civil or criminal proceedings. However, where a Code gives practical guidance on the observance of any of the relevant statutory provisions, compliance or non-compliance with those provisions may be admissible as evidence in criminal proceedings.

The Employees (Provision of Information and Consultation) Act 2006 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 applies 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

This 2006 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 “pre-existing agreements’ which can be tailor-made to suit the culture and circumstances of their own company. (Undertakings with at least 150 employees or those with at least 100 employees had the opportunity to put in place pre-existing agreements by the 4 September 2006 and the 23 March 2007 respectively. This option is currently only available to undertakings with between 50 and 99 employees and will not be possible after 23 March 2008). Alternatively, the Act gives employees the right to request that an employer sets up an information and consultation procedure (a “negotiated agreement”); 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.