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IBEC, the group that represents Irish business, today called on the government to bring forward substantial amendments to the terms of the Employment Law Compliance Bill, which is at second reading stage in the Dáil.

IBEC Director Brendan McGinty said: “IBEC welcomes the fact that the Minister for Labour Affairs, Billy Kelleher TD, has said that there will be “substantial changes to the body of the Bill” before it is enacted as law. The Minister’s comments follow intensive engagement by IBEC to reduce or eliminate many of the most onerous provisions contained in the current draft of the Bill and to remove some of the criminal offences.

"The Bill as published will only serve to discourage employment at a time when we should be doing everything possible, as part of a charter for economic recovery, to preserve employment. The Bill goes far beyond the scope of what was necessary for the proper functioning of the National Employment Rights Authority (NERA). It also goes far beyond the terms that the social partners agreed in Towards 2016 to provide public confidence in ensuring that Ireland has an effective system of employment rights compliance. It proposes 23 new criminal offences and places a much heavier burden of compliance on employers than currently exists. In the current climate of job losses, the Bill as published will only harm the Irish economy and increase unnecessary litigation. It will ultimately cost jobs.”

The Bill’s main purpose is to establish NERA as a statutory body. NERA currently operates on a non-statutory basis. The Bill also aims to clarify and strengthen the powers of the labour inspectors that work within NERA.

Mr McGinty stated: “Among the most objectionable provisions include new and wide-ranging powers in relation to search warrants, name and shame provisions, compliance notices, enforcement orders and fixed payment notices, a requirement for a detailed statement of duties to all employees who leave employment and an obligation to obtain and retain a copy of a passport (or equivalent) for every employee. These are unreasonable, disproportionate and in many cases impractical.”

These changes should also be supported by further amendments to the Industrial Relations Acts which would:

• Allow distressed employers to apply for exemptions from Employment Regulation Orders (EROs) and Registered Employment Agreements (REAs). One such arrangement is currently provided for in the National Minimum Wage Act.
• Place limits on the period of arrears arising from claims under Employment Regulation Orders (EROs) and Registered Employment Agreements (REAs) to align these with the time limits for arrears under the Payment of Wages Act.

“At a time when job preservation is at the top of the national agenda we need to place a greater focus on the need for workplace-based resolution of problems, rather than enforcement and prosecution,” Mr McGinty concluded.