Micheál Martin (Cork South Central, Fianna Fail)

The issue of increasing penalties for non-compliance with employment rights legislation is likely to be raised in the course of the social partnership talks and will be addressed by the Government in that context. The Government takes the view that penalties should be proportionate in scale and effective in impact.

The imposition of penalties for non-compliance as well as redressing compensation to employees exists in over 14 legislative instruments from the Industrial Relations Acts 1946 to 1990 to the European Communities Protection of Employees and Transfer of Undertakings Regulations 2003. These penalties range from €1,269 to €12,500 for offences that range from failure to pay wages properly, failure to keep proper records, failure to co-operate with or giving false information to a labour inspector, failure to attend, comply with or give evidence to the relevant court, failure to comply with the conditions of employment fixed by an employment regulation order, and to effecting redundancies before the expiry of the 30 day notice given to the Minister.

Apart from penalties imposed under the legislation, redress or compensation is awarded to employees by the Rights Commissioners, the Employment Appeals Tribunal or the Labour Court. This ranges from one week's pay for unlawful deduction from wages to up to two years' salary for unfair dismissals, deterioration of conditions of employment after transfer of undertakings, or discrimination against fixed-term or part-time workers. The value of this redress or compensation increases as wages increase.

The levels of fines or redress are matters for the Rights Commissioners, Employment Appeals Tribunal or the Labour Court to decide on a case by case basis. In many instances the maximum level set down in the various Acts and regulations is not imposed. The labour inspectorate and the Department maintain that escalating penalties, interest charges, punitive damage and other such sanctions would enhance the compliance regime and underpin the general policy approach of our labour inspectorate.

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