Proposed Introduction of ‘Inability to Pay Clause’ for EROs and REAs

Following a Debate in the Dάil on 26th January 2010, it is anticipated that the Government will introduce an ‘inability to pay clause’ for Employment Regulation Order (EROs) and Registered Employment Agreements (REAs) as part of the Industrial Relations (Amendment) Bill 2009, according to Minister of State for Labour Affairs Dara Calleary.

The Minister has however addressed concerns that there would be a ‘mad-rush’ for this or organisations trying to ‘dismantle the wage structure’ by stating clearly that such hardship clauses “can only be triggered by a real and measurable crisis of the firm, and include procedures for a third-party adjudication of the firm’s financial situation”.

Currently the ‘inability to pay clause’ exists only under the National Minimum Wage Act 2000, but according to Tάnaiste, Mary Coughlan, ‘from what I can ascertain it has never been used’.

This proposed introduction to the Industrial Relations (Amendment) Bill 2009 will no doubt be a welcome change for the thousands of employers struggling to make ends meet as a result of hefty payroll costs within these certain sectors such as catering, hairdressing and contract cleaning bound by the EROs and REAs.

Labour Court Gets New Deputy Chairman

Minister for Labour Affairs, Mr. Dara Calleary, TD, announced the new Deputy Chairman of the Labour Court on Friday 15 January, 2010, as Mr Brendan Hayes.  Mr Hayes is currently Vice President of SIPTU.

Minister Calleary, wished Mr Hayes well in his new appointment.  The Minister said "Brendan Hayes will bring a wealth of experience to the Labour Court given his extensive industrial relations experience and his previous service for over thirty years as a trade union official".

Brendan  Hayes  is  currently  Vice  President of SIPTU and a member of the National  Executive  Committee  of  the  ICTU.  He  has over thirty years' experience as a Union official, having served as a  Regional  Secretary in SIPTU from 1990 to 2004, and formerly as a Branch Secretary in the Federated Workers' Union of Ireland before the merger with the former ITGWU which created SIPTU.

Number of Phone Calls to NERA Continues to Rise

The Minister for Labour Affairs, Mr. Dara Calleary has welcomed the preliminary report of the National Employment Rights Authority for 2009 on their activities based on 2009 statistics up as far as 18th December 2009. 

Information Services

• Over 149,000 calls in the period to 18 December 2009 - an increase of 38% (108,000 calls) on the same period in 2008

Inspection Services

• A total of 22,065 inspections in 2009 compared with 22,062 in same period in 2008
• Over €2.3m in unpaid wages was paid to employees on foot of NERA inspection activity during 2009
• Undertook 1, 062 Employment Permit Compliance checks
• Identified an overall breach rate at 19% which remains similar to last year’s

NERA continued to work very closely with Revenue and Social and Family Affairs this year both in exchange of information and in undertaking joint inspection activity.  A total of 38 joint inspections were undertaken to date in 2009 compared to 12 joint inspections in 2008. 

Be sure to keep an eye on our monthly ezine, for regular updates on this and any other Employment Law updates. Alternatively, contact our 24 Hour Advice Service on 01 855 5050 where one of our experienced advisors will be happy to help.

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