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Employment

The most radical employment law measure in Ireland was the introduction of the Unfair Dismissals Act, 1977 which effectively legislates for the concept of “unfair dismissal” as formulated by the International Labour Organisation. Overall Ireland has achieved a reasonable balance between the rights of employers and the rights of employees.

Collective employment issues

Ireland has a well-developed and sophisticated system of a Labour Court and the Labour Relations Commission. Secondary picketing and other forms of disruptive industrial action are not permitted and the Courts will grant injunctions to restrain such conduct. Trade Unions require a negotiating licence. As a result of the various industrial relations acts, Ireland has achieved a very high standard of harmonious industrial relations and unofficial or “wild cat” strikes are now exceptional.

Employment Law and Indivuals

Ireland has a well-developed but reasonably balanced system of employment law protecting the rights of individual employees. The following is a very brief description of the most important legislation.

The Minimum Notice and Terms of Employment Act, 1973 and the Terms of Employment (Information) Act, 1994.

This legislation prescribes, in accordance with standards applicable in the EU the information concerning the terms and conditions of employment of an employee (to be set out in writing) and the minimum notice to which an employee will be entitled in the event of termination of employment.

Organisation of Working Time Act, 1997

This Act transposes into Irish law EU Council Directive 93/104/EC on the maximum working hours. Consequently, Irish law is similar to the law of the rest of the EU.

Parental Leave Act, 1998 and Adoptive Leave Act, 1995

This legislation is broadly reflective of European standards and is not regarded as exceptionally onerous.

Protection of Young Persons (Employment) Act, 1996

This sets out minimum ages of employees of persons for particular employments.

Protecting Employees (Part -Time Work) Act 2001

With the passage of this piece of legislation part time workers are entitled to the same conditions of employment on a pro rata basis to those of comparable full time employees. This would include the provision of sick pay, health insurance and share options.

Worker Protection (Regular Part-Time Employee) Act, 1991

This legislation imposes non-onerous standards of employment rights protection in relation to part-time employees who previously would not have had sufficient hours of work per week to qualify for the full protection of other protective legislation.

Redundancy Payments Acts 1967 to 2001

Apart from special legislative provisions dealing with collective redundancies, these Acts govern the procedures and entitlements of employees in the event of termination of employment due to redundancy. Redundancy is defined in the generally internationally acknowledged sense. Statutory redundancy rights are very limited amounting to one week wages/salary per year of employment plus a half a week wages/salary for every year of employment under the age of 40 with the particular employer and one week per every year of employment after the age of 40. Due to the restrictive benefits of Irish redundancy legislation, voluntary redundancy packages are now the norm and generally speaking, companies will negotiate (excepting in the case of insolvency) redundancy settlements varying between 3 weeks to 6 weeks remuneration per year of service (irrespective of age) but with certain discounts for older employees approaching retirement.

Ireland is presently reviewing the Council Directive on the approximation of the laws of the Member States relating to collective redundancies (Directive 98/59/EC) but there is a view that many of the obligations under this Directive have already been given effect to by the Protection of Employment Act, 1997 and the Regulations thereunder being the Protection of Employment Act, 1977 (Notification of Proposed Collective Redundancies) Regulations (SI 1977 No. 140).

Unfair Dismissals Act 1977 and Unfair Dismissals (Amendment) Act 1993

Except for dismissals motivated by the pregnancy of the employee, racial or other discriminatory factors, trade union activism, qualification for protection of unfair dismissal legislation in Ireland is based on achieving 52 weeks continuous service.

The relevant legislation is the Unfair Dismissals Act, 1977 and the Unfair Dismissals (Amendment) Act, 1993.

There is a statutory ceiling on compensation based on 2 year gross income but the median award of the Employment Appeals Tribunal is in the region of €14,000. Approximately one third of cases brought by employees are successful. Compensation is payable only for proven loss of income due to dismissal.

The Employment Equality Act, 1998

Ireland has a significant corpus of legislation prohibiting discrimination on the grounds of race, gender, religion or nationality. The provisions of Council Directive 75/117/EEC on the approximation of the laws of the Member States relating to the application of a principle of equal pay for men and women, has been transposed into Irish Law by the Employment Equality Act, 1998 which has rendered unlawful any gender based discrimination.

Maternity rights, Transfer of Assets of a Company, Human Rights legislation

Maternity Rights

The Maternity Protection Act, 1994 and a considerable amount of secondary legislation provide substantial protection for working mothers. Maternity leave is now paid leave of 18 weeks with an optional 8 weeks of unpaid leave although Irish employers and international employers located in Ireland will readily pay the additional one month remuneration for the unpaid leave period.

Transfer of Assets of a Company

Due to Ireland’s membership of the EU, Ireland has transposed into domestic law, the provisions of the earlier Council Directive on the approximation of the laws of Member States relating to the safeguarding of employees rights in the event of transfers of undertakings, businesses or parts of business. This has been done by secondary legislation, the European Communities (Safeguarding of Employees’ Rights on Transfer of Undertakings) Regulations, 1980.

Effectively, where a business or portion of the business assets are to be transferred, employees will have the right to be transferred in their employment to the new entity.

This is a complex area of law but the relevant decisions of Ireland’s specialised Employment Appeals Tribunal are in line with the jurisprudence of the European Court of Justice.

Human Rights legislation

In an employment context, the most significant legislation in recent years is the Equal Status Act, 2000, which was brought into force on the 26th April 2000.

Although not specifically intended to have a significant effect on employment, the Equal Status Act has been used by some employees to maintain claims based on gender, racial discrimination, ethnic origin, sexual orientation and disability based discrimination.

As a result of Section 48 of the Equal Status Act, 2000 and the amendments made to the Employee Equality Act, 1998, many of the deficiencies in the earlier legislation have been addressed. Ireland now has a strong and effective body of legislation protecting not only employment rights but also the general access of minority groups to goods, provision of services, provision of accommodation, access to education, access to social clubs, protection against harmful or malicious advertising and access to licensed premises. In addition, the Unfair Dismissals Acts have brought into effect legislation protecting employees against dismissal based on ethnic origin or sexual orientation.

For further information or general enquiries contact: -
Anthony Layng
Email: alayng@kilroys.ie or
Kevin O'Gara
E-mail: kogara@kilroys.ie
Telephone: +3531-439 5600
Fax: +3531-439 5601/439 5602

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