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ZERO HOUR CONTRACTS will banned “in most circumstances” under new plans.
The government today approved draft legislative proposals from Jobs Minister Mary Mitchell O’Connor and Small Business Minister Pat Breen that will “address problems caused by the increased casualisation of work and to strengthen the regulation of precarious work”.
The draft proposals are aimed at low-paid workers in particular.
The proposals address the issue of employees on low hour contracts who consistently work more hours each week but whose contracts do not reflect the reality of their hours worked. They include provisions aimed particularly at low-paid, more vulnerable workers.
A government statement says the plans include an amendment to the Organisation of Working Time Act which will outlaw zero hour contracts “in most circumstances”.
[The proposals will stop situations] where the stated contracted hours are zero, unless it is genuinely casual work, emergency cover or short-term relief work for the employer. This proposal is to avoid the contagion of an increase in zero hours practices in this jurisdiction.
The draft legislation will now be referred to the Office of the Attorney General for priority drafting of a bill and has been cautiously welcomed by the Irish Congress of Trade Unions (ICTU).
General Secretary Patricia King said: “This is an issue that Congress has been active on for some time and we see much of what is contained in this draft legislation as quite positive.
“Congress has pressed the need for legal change to counter the downward pressure on standards that has resulted from zero hour, low hour and precarious work practices.
“Congress believes that the proposed prohibition on zero hour contracts in the draft legislation is positive and progressive, but believes that issues remain to be resolved with regard to the appropriate rate of pay that will apply.”
Senator Ged Nash, a former junior business minister, called the proposals “a curate’s egg”.
“I cautiously welcome the proposals but will reserve judgment until I see the details contained in the forthcoming legislation.
“The bottom line is that there are still too many people in this country going to bed on a Sunday night and not knowing how much they will earn that week because of uncertainty over their hours.”
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About frigin time , how this was ever allowed in the first place …
@Paul Mc Namara: becayse our legalisation mirrors the UK and some has been in place 15+ years.
@Paul Mc Namara: on the surface it looks great, but long term it’s a negative. I run a seasonal tourism business in a country where zero hours contracts are banned. This restricts me hiring new employees as demand fluctuates, in fact I have to turn away business as I cannot be flexible enough with getting staff to meet demand. Net end result I do less business than I could and employ less people than I could. Yes the extra staff I could employ would not be guaranteed hours but if they regularly don’t get enough hours they go back on the dole. Which is way better than them staying on the dole permanently which is the case now. In my business it would be an extra 2 employees, multiply that by how many companies are in the same position and it makes a meaningful impact on economy.
@Mary Murphy: perhaps the ban should be limited to companies with more than a certain number of staff?
@Mary Murphy: You need a/solution to your problem but I suggest you hire free lance workers when you need them but a zero hour contract sounds you have a hold on people that suits your needs but not theirs.
@Mary Murphy: what about self employed staff or agency workers
@Jho Harris: Are they not free to search for alternative employment?? Free market and all that?!
@Jho Harris: Freelance/self employed staff have to pay costs to run their company. Additionally they do annual tax and company returns etc. Also they have to make social security payments. Ireland has a very similar set up. Also as self employed they would not be entitled to social welfare benefits. Couple this to the salary rate their job earns doesn’t make it viable for them to take this route. I have looked at agency staff but the rate of pay I have to pay the agency is 3.5 times the hourly wage as the agency has to cover costs and make a profit to exist.
@Mary Murphy: I was never suggesting agency staff but get to know some locals who you can call on when things get busy.
@Leroy: In order to refer to their situation as low mourn “contracts” I assume the employer has to have a hold on their time. If somebody is not available when the employer contacts you are off their books for future jobs which is as far from free market as you can get.
@Paul Mc Namara: the government promoted it to massage the unemployment figures.
@Jho Harris: On what contract basis do I employ them? No contract….essentially the same as a zero hours contract…I don’t guarantee them any work. If I need them and they are not regularly available, then I don’t call on them again. Again essentially the same as having them on zero hours and then letting them go. As I outlined already freelance or self employed doesn’t work. The only way I could possibly do it is to pay cash in hand, which is illegal and they don’t pay taxes or get social welfare benefits.
@kevin: If you are trying to prevent the big companies from offering zero hours contracts that won’t work. It is very easy to get around for a big company, they would just make lots of subsidiaries. Each branch of Tesco becomes a separate company and they subdivide within the branch. Additionally that would mean I have an unfair advantage over big companies. Although big companies need flexibility as well, they face the same problems I do.
Should never have been allowed. There are NO REASONS for any exemptions.
@Séamus Moynihan: there are plenty of reasons for exemptions but your mind is to small to comprehend.
@cholly appleseed: But Seamus used capitals to get his point accross. That must count for something
@cholly appleseed: But Seamus went to all that bother of using capitals to get his point across. That must count for something
Great news
Always leave a loop hole forwhen the law can be exploited. In this case most cases, note, not all cases.
http://www.rte.ie/news/2015/0122/674778-labour-charter/
@Just Me: Just took 4 years to get around to it?
What does that mean, In most circumstances. That really leaves it open.
@Gavin Redmond: http://www.coe.int/en/web/turin-european-social-charter
The multi-national company’s won’t want to see this legislation coming in ,as the zero hour contract can keep a Workers entitlements at a minuium . The government have to start helping the working men & woman of Ireland .
@John Quaid: So you think zero hour contracts are prevalent in Google, Facebook, Amazon, Apple etc?
@Kieran O’Sullivan: there’re prevalent to the thousands of service workers that support these companies
@Stephen Hughes: really, would you like to give me examples of the hundreds of thousands of zero hour contracts in company’s supporting the Multinationals.
@Kieran O’Sullivan: cleaners ,security officers, coffee shop staff, delivery drivers , child minders , hotel workers , restaurant workers ,bar staff , general contact workers , sorry , general zero contract workers
Workers of Ireland 1 – Patricia Callan and SFA 0.
One can smell a general election ☺
About time, they are a modern form of slavery. Perhaps I can start food shopping in Dunnes again (three years since last time) given this will whip that hatchet Heffernan into line.
Totally agree with you, John, I’ve avoided Dunne’s for the exact same reason. Ms Heffernan forgets how her company started in the first place
This is a great move.
I have no allegiances to Fine Gael – far from it – but I think Mary Mitchell O’Connor is quietly getting things done, while getting an unduly hard time from the media.
@Conor Normile:
I suppose tomorrow morning she’ll be claiming she’s just created tens of thousands of high paid jobs.
Companies like topaz and dunnes, like to have alot of staff with small hrs, it’s great for the company but not for the staff who can’t get loans or mortgages, and if you get into the bad books for not being available or some other reason are cut to the bone
Also stops people joining forces as a group i.e. Unions
This is great news and example for other countries , zero hours contracts are common in the UK for low skilled roles.
no way will we see this from f/g,,,,better chance of winning lotto
I hope this covers people in aviation industry as well.
Is “curate’s egg” a Louth saying? Had to Google it, never heard this in my life ha
Could taking on workers for nine months on and three months off every year for a maximum of 5 years also be banned. I know an unskilled man in his 60′s suffering this indignity with a U.S. multinational. Completely taking advantage of him and morally wrong.
@Michael Ahern: Is he a teacher, cos it sure as heall sounds like teaching
Brilliant news
Guess the government believes unemployment is better, since that’s the only alternative.
Devils advocate but what will happen to those on these zero contracts now. Will they have a job when this comes in. A lot of small business use this flexibility to keep people in jobs which they might end up losing now.
@Ciaran Kehoe: And what happens to part time casual and seasonel employment say less than 20 hours a week if the employer is required to pay someone a minimium amount of hours regardless if it justified or not,i cant see many employers going down this route if it means they will take a major hit,most likely it will result in less available jobs because if the economics don’t add up people just wont hire.
@Richard McCarthy: employers only have to pay if they call people into work and then send them home e.g. if six employees are called into work but three are sent home, the three sent home would be entitled to 3 x National Minimum Wage i.e. €27.75
It is to deter employers from this unscupulous practice.
A lot of companies here in Ireland be it Irish or major MNC use agencies to source staff, And have the people working for them on zero hour contracts.
There should be a minimum pay of like 18 euro per hour on zero hour contracts.
@Leitrim303: employers l have to pay if they call people into work and then send them home e.g. if six employees are called into work but three are sent home, the three sent home would be entitled to 3 x National Minimum Wage i.e. €27.75
It is to deter employers from this unscupulous practice
Doubt they will ban zero hour contracts in the public sector, they’ll find a way around that one!
@Tomas Mac Giolla Bhríde: No zero hours contracts in the public sector.
An boost the mum
@B-bob: and boost the minium wage up to a living wage while your at it
@B-bob: how would you deal with the increased prices this would bring to the consumer. Visit Australia if you want to see what that does to the economy.
@Mary Murphy: Alternatively, I have read a number of studies that show the boosting of minimum wages to be a net contributor to growth, generally boosting aggregate demand. It all depends on how its done and when. It’s a simplification to argue that tinkering with minimum wages always leads to perdition – that’s an old right-wing argument that has been doing the rounds forever.
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