Regina Doherty (Meath East, Fine Gael) | Oireachtas source

I move amendment No. 2:

In page 5, after line 27, to insert the following:

“Repeals 3. The following are repealed:

(a) paragraphs (a), (b), (f) and (g) of section 3(1) of the Act of 1994, and

(b) section 16 of the National Minimum Wage Act 2000.”.

Section 3(a) repeals the essential terms of the employment listed in section 3(1) of the Terms of the Employment (Information) Act 1994. Section 6 inserts them into section 3(1)(a) of the same Act so that they are required to be provided within five days of commencement of employment, in reference to section 6 of the Bill. The terms to be provided for on or by day five focus on what is important for employees, including, for example, the identity of their employer, how much they will be paid and what their hours of work will be. Section 3(1) of the 1994 Act requires employers to provide 15 terms of employment within two months of commencement of employment. Employers will still be required to provide the remaining terms of those 15 items of employment listed in section 3(1) of the 1994 Act, that is, the terms not repealed by this section, to employees in writing within two months. If this section is enacted, employees may pursue a case to the adjudication division of the Workplace Relations Commission if the terms of employment, under 3(1) or 3(1)(a) of the Terms of Employment (Information) Act 1994 are not provided in writing once the employees are in continuous employment for one month.

Section 3(b) is a consequential amendment to amendment No. 49. When Second Stage of this Bill was discussed I advised that I would bring forward an amendment at Committee Stage on foot of the recommendations of the Low Pay Commission in relation to the current sub-minimum rates of the national minimum wage. The existing rates provide for reduced rates to be paid in certain circumstances to particular groups, for example, young workers and trainee workers. Having examined the issue and consulted widely, as well as having commissioned research by the ESRI which examined international best practices, the Low Pay Commission's recommendations were that the existing training rates be abolished and that the rates for younger workers be retained and simplified. This amendment provides for the repeal of the section permitting the payment of training rates. Rates for younger workers will be dealt with via another amendment later in the Bill. The report of the Low Pay Commission sets out clear evidence, based on rationale, for its recommendations on training rates, including the fact that the rates are not widely used.

There is a clear lack of definition around training and a lack of a formal system of notification of the use of training rates which leaves those rates more open to possible abuse. There is also a belief that employees should not receive less than the statutory minimum wage unless they are part of an apprenticeship programme approved by the State in which they genuinely receive structured and fundamental training, with a stated outcome at the end. All available evidence is that training rates are not used widely, with less than 0.5% of employees having indicated that they are on the training rate. The number of employers likely to be disadvantaged due to the abolition of this rate will be tiny.

The Low Pay Commission's recommendation on this were supported by every single member. It is the first time this has happened, due to the composition of that group. All nine members, both employer and employee interests along with the independent members of the commission, agreed with this recommendation. I ask members of the committee to recognise the concerted agreement among that body that we collectively have charged with the responsibilities in this area, and to support this amendment.