Gerald Nash (Louth, Labour) | Oireachtas source

Having considered the proposed amendments, I consider that they are not necessary. Amendment No. 25 provides for a prohibition or restriction on charges or deductions from the national minimum hourly rate of pay. The Payment of Wages Act already provides a redress mechanism for unlawful deductions from wages. Section 5(1) of that Act allows an employer to make deductions required or authorised by law, such as PAYE or PRSI, or required or authorised by a term of the employee's contract, such as occupational pensions schemes, or any deduction agreed to in writing in advance by the employee - for example, trade union subscriptions or VHI premiums. Section 5(2) of the Act places significant restrictions on employers with regard to deductions or the receipt of payments from wages of employees.

As regards fair hours of employment rules, the Organisation of Working Time Act regulates working hours. In this context, Deputies will be aware that I have commissioned a study on zero-hour and low-hour contracts by the University of Limerick and I expect the study to be completed in the third quarter of this year. Where the evidence points to some adjustment being required to the protections in place under employment law, these will be brought forward for consideration by the Government. Accordingly, I cannot accept amendment No. 25.

Amendment No. 26 seeks to ensure that businesses will be allowed sufficient time to plan for any adjustment proposed in the national minimum wage. I am supportive of the view that any increase in the minimum wage must be done in an orderly way in order that companies can plan their business. I remind Deputies that the ESRI, in its 2006 analysis of the most recent Labour Court recommendation proposing an increase to the national minimum wage, concluded that adjusting the minimum wage by a substantial amount on an irregular basis, with lengthy gaps between increases, as occurred in the past, is more likely to have a detrimental impact on employment and to contribute to uncertainty for employers and actual and potential employees than regular, smaller and fairly predictable increases.

A significant benefit of the establishment of the Low Pay Commission is that the national minimum wage rates will be assessed annually and, therefore, when they occur, any adjustments will be incremental and less disruptive for business than the previous step changes which were criticised by the ESRI in its 2006 analysis. The deadline of 15 July 2015 for submission of the Low Pay Commission's recommendation was specifically to allow time for consideration of the issue in the context of the year's budgetary considerations and to provide for any adjustment in a planned way. Consequently, this very structure achieves the objective the Senator seeks in his amendment.

The Low Pay Commission will also ensure that any advice or recommendations it makes to the Government is evidence-based by utilising agreed data, carrying out research and consultations with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations. This is to ensure that any suggested changes to the national minimum wage will have a minimum adverse impact on employment and competitiveness.

The commission will consult workers and employers who are directly affected by the national minimum wage, as it has been doing, to get a handle on the real experience of businesses and employees in sectors associated with low pay. While I recognise the intent behind the proposal, I cannot accept the amendment, as I do not consider it necessary given the new structures and processes that are being put in place.

See this speech in context